SOCIAL (SOCIO-ECONOMIC) FACTORS OF RENEWABLE ENERGY DEVELOPMENT IN THE LVIV REGION

Abstract

The development of renewable energy in Ukraine has been influenced by societal (socio-economic) factors, incorporating economic incentives and the state’s international commitments. A feed-in tariff is an important factor in the economic stimulation of renewable energy development. Due to this mechanism, the Lviv region has become the leading region in western Ukraine in terms of installed capacity of energy objects. Among the renewable energy objects in the Lviv region, there are the largest number of solar power plants, as well as four wind power plants, three small hydroelectric power plants and one bioelectric power plant. Under the new legislation, these objects are subject to feed-in tariff reduction factors that vary from 0.4 to 1.0 depending on the type of power plant, installed capacity and year of tariff application. At the same time, the government guarantees that the feed-in tariff will not be changed or cancelled for the objects for which it is established until 2030. As of January 1st, 2024, the following feed-in tariff rates (excluding VAT) were set for renewable energy objects in the Lviv region: from 300.76 kopecks/kWh (for wind power plants) to 989.51 kopecks/kWh (for solar power plants). In 2022, after Russia's full-scale invasion of Ukraine, EU countries adopted the REPowerEU plan, which provides for the abandonment of natural gas from the aggressor country and the development of hydrogen technologies. In the context of this development, the Lviv region is seen as one of the key hydrogen hubs. A PESTEL analysis was carried out to assess the impact of social factors on the development of renewable energy in the Lviv region. The analysis considers political, economic, social, technological, environmental, and legal factors. The results of the assessment, which covered 31 factors, showed that 58% of them are assessed as having a positive impact on the development of the renewable energy. Due to the negative impacts caused by the military and economic instability, the development of renewable energy in the Lviv region may be slowed down.