There are a number of laws and regulations aimed at promoting the use of renewable energy sources (RES). Nonetheless, there is no regulation requiring a percentage of energy consumption to come from RES.

Ukraine undertook an obligation to implement Directive 2009/28/EC of the European Parliament and of the Council. According to the available statistics, in 2021, energy produced from RES reached 8.1% of the total energy produced. In the same year, Ukraine was ranked 36th in Climatescope's global power ranking. However, due to the Russian-Ukrainian war, it has significantly deteriorated and is now ranked 74th.

The main ways of encouraging the use of RES are (i) a green tariff for electricity produced from RES and (ii) tax and customs relief and exemptions.

Green tariff

To stimulate the operation and development of RES in Ukraine, a green tariff was introduced in 2009. The National Energy and Utilities Regulatory Commission of Ukraine (NERC), which is the regulatory authority in Ukraine, establishes green tariffs for each company that generates electricity from RES and for each type of RES. Green tariffs are established until 1 January 2030, and are reviewed by the NERC on a monthly basis. Green tariffs are applied to new construction projects and existing renewable energy plants.

A green tariff is also granted for electricity produced by private households using solar panels and wind power facilities of a capacity not exceeding 30 kilowatts.

Tax and customs relief

To encourage the use of RES, the Tax Code of Ukraine and the Customs Code of Ukraine establish that imports of certain energy-efficient materials and equipment are free from import duties and VAT, including the following:

• Equipment that operates on renewable energy, and fuel and energy metering equipment
• Equipment and materials for producing alternative fuels or energy from RES
• Raw materials, equipment and components for producing energy-saving equipment and products that ensure efficient use of fuel and energy resources

The Cabinet of Ministers of Ukraine has promulgated a list of equipment and material imports that are free from import duties and VAT.