Ukraine wind energy auction fails after only one developer bids
Ukraine has carried out pilot renewable energy auctions this year for wind, solar and biomass but struggled to attract investors at time when it is being relentlessly targeted by Russian missiles
Ukraine’s inaugural wind energy auction has failed after only one developer bid, as the country reels from the latest wave of Russian missile strikes on its energy infrastructure.
The news comes in a week when Russia launched one of its largest assaults on Ukraine’s energy infrastructure yet, leaving millions in darkness and subject to further rolling blackouts.
This has come amid further escalating tensions and rhetoric as Ukraine has used US and UK-made missiles for the first time to strike inside Russia, which has responded by using what it says is its new Oreshnik intermediate-range ballistic missile in Ukraine.
While Russia has relentlessly targeted Ukraine’s thermal power plants and hydropower assets, its fleet of wind farms has escaped largely unscathed, aided by the fact wind turbines are spread over large areas and much harder to hit.
This has led to new emphasis on the importance of building out Ukraine’s wind power capacity, along with other renewables.
Ukraine in August announced plans to hold pilot green auction rounds through the end of 2024, aiming to scale up with larger rounds in the future. This will help meet Ukraine’s target of adding 10GW of new renewables capacity by 2030.
Bidders in the auction rounds would enter 12-year offtake agreements with a government-backed buyer, offering up to €90/MWh for wind and solar and €120/MWh for other types of green generation.
However, attracting developers to bid in renewable energy auctions at a time when Russia is battering Ukraine’s energy assets with missiles has proved difficult.
An 11MW solar power auction round last month failed to attract a single bidder – although two entered a subsequent 11MW biomass round.
UWEA has stressed the importance of setting up suitable financial structures to help encourage investment in Ukraine’s renewables sector while the country is still at war.