Innovative financial instruments to stimulate the development of renewable energy in Ukraine

Abstract

The research investigates contemporary financial tools that facilitate the advancement of renewable energy in Ukraine. This research assesses the efficacy and cost-effectiveness of instruments, including green bonds, energy auctions, and public-private partnerships, through a comprehensive analysis of regulatory documents, financial metrics of sector firms, and international
best practices. From 2019 to 2024, the capacity of solar power plants in Ukraine expanded from around 1,500 MW to over 5,000 MW, while wind capacity rose from 600 MW to over 1,700 MW. The results demonstrate that the primary obstacles to capital attraction are regulatory volatility and significant market unpredictability. The research illustrates that contemporary financial tools can diminish project expenses, mitigate investor dangers, and bolster economic stability within the energy industry. The findings may benefit governmental authorities, private investors, financial institutions, and international organizations in formulating investment strategies and enhancing financing systems for renewable energy.