An assessment of the optimal level of feed-in tariffs in Ukraine

In this work, an assessment of the optimal level of feed-in tariffs in Ukraine was carried out. One of the purposes of the study was to see whether the existing tariffs are sufficient for business operation and attractive to investors. Important assumptions on the economics of renewable energy projects were made. The results indicate that the current level of feed-in tariffs in Ukraine is sufficient for medium and large wind projects, rooftop solar power plants, rehabilitated small hydropower projects and biogas-derived electricity. Feed-in tariff rates are high enough to attract new investors and compensate for the high risk of doing business in Ukraine. If governmental policies aim to enhance power generation by households, the feed-in tariff rates should be differentiated from those for small wind farms and photovoltaic systems.