Ukraine seals new renewables law with local-content rules

Ukrainian president Viktor Yanukovych has signed a law which tightens the rules for the country’s renewable energy market, in a move analysts claim will strengthen the position of existing players while making it less attractive to newcomers.

The renewables law increases the local-content requirement to 50% for wind farms. Foreign investors expressed concern about plans for the 50% rule, claiming it would make it impossible for them to work in Ukraine.

Those fears resulted in the draft bill being amended to change the way in which content is calculated from July 2013. The final version now assigns a specific “share” of local content to each component in a facility.

The final version applies a 30% local-content rule to wind farms where construction started after this year and that are commissioned…

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