Green deal: new perspectives of solar energy in Ukraine

What should know the enterprises with their own solar plant stations and people who haven’t built their solar plant station for own consumption. 

The Deputy Minister of Energy and Environmental Protection at the beginning of this year presented to the energy market the Concept of “Green” Ukraine transition to 2050. The main idea is to make our country’s economy carbon neutral. The impetus for this event was the European document Green Deal (Green Agreement) from December 1, 2019. It was adopted by 66 countries at the UN Climate Summit, where participants took the responsibilities to achieve climate neutrality by 2050.

What Ukrainian enterprises need to know about Green Deal 

Increasing of  CO2 emissions lead to climate change and environmental worsening. If such gas is in excess, it creates a greenhouse effect – the Sun’s radiation passes through the atmosphere, but it goes back less energy.  The more greenhouse gases, the more the Earth’s surface heats up. Because of this the climate is changing, the ice is melting too fast, the fauna and flora are changing. The main goal of the concept is to reduce greenhouse gas emissions to the “maximum minimum”. Is this possible?

One way to stop this is to use renewable sources of energy. This will reduce CO2 emissions and provide “cleaner” energy for human needs. That’s why enterprises which install solar power plants are joining the goals of sustainable development when it comes about improving the quality of the environment through the alternative energy sources. Moreover, from 2023 the EU will implement the first phase of the Carbon Border Adjustment Mechanism. It concerns the large groups of goods: cement, electricity, chemical fertilizers, cast iron and steel, aluminum.

In Ukraine there is developed concept of Ukraine Green Deal. According to which Ukraine will initially have enough investments on the level 5% of GDP per year (€ 6.7 billion). Public funding for decarbonisation is expected to reach 3% of GDP per year (€ 4 billion). There are reasonable predictions for the decommissioning of almost all coal and nuclear units in 20 years, starting from 2030. But the government has not formed its position regarding to energy development in the long run for 30 years ahead. It is unknown at the moment what to extent and from what sources the state will finance the transition to a carbon-free economy.

The decarbonisation plan could be like that: adopt a clear energy development strategy until 2050 and create a decarbonisation fund, increase the cost of CO2 emissions, launch auctions for new alternative energy projects and to build shunting capacity.

What the company needs to obtain quotas for exports to Europe 

The expansion of the export potential of companies may be due to solar generation. The sooner companies switch to renewable energy sources, the sooner they will be able to adapt production to EU export requirements. Therefore, we will have an increase in exports. The excise tax on the sale of electricity from renewable sources will be 3.2%. 

Domestic manufactures are required to purchase emission allowances through the European Emissions Trading System (ETS). Importers will have to buy certificates for the carbon footprint left by their products.

 Ukraine supplies 5% of all EU imports of aluminum, 13% of cement, about 20% of iron and steel. This is a production with a significant residue of carbon footprint. According to forecasts, a third of our exports to the EU will fall under.

Solar energy for businesses

 It is a driver of the future industry and the agricultural sector in Ukraine. And the use of solar energy for agriculture is the most profitable. There are often difficulties in supplying electricity to rural areas; there are sudden and prolonged power outages due to insufficient power in the network or due to weather events. In addition, the energy consumption of any farm is extremely high, but solar energy is able to optimize them. Because agricultural enterprises have a lot of free areas and large areas of roofs, walls of houses and outbuildings for the installation of solar panels. This allows you to receive and store large amounts of electricity to make agricultural enterprises energy dependent. 

If you choose the Green Deal, you step on the “green course of Ukraine” – closer to making the whole of Europe more carbon neutral, while ensuring economic growth. Such greening is beneficial for Ukrainians. This has an impact on improving the urban environment, reducing morbidity and creating new green jobs. The Green Deal program is related to the level of environmental awareness of people. And we will develop it.

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