The Ukrainian Union of Lessors, with the support of the USAID Financial Sector Transformation Project grant program, continues to study the problems, opportunities and prospects of leasing in various sectors of Ukraine’s economy.
The Association is the only professional association in the industry. Its member companies generate more than 80% of Ukrainian leasing new business. UOL is actively working to promote leasing, raise awareness of small and medium-sized businesses with the benefits of this type of financing, improve the regulatory framework, protect market participants and more.
The Association also organizes market research, potentially promising in terms of renewal and modernization of fixed assets in them with financial leasing instruments. A study of the potential of leasing in the field of road construction has recently begun. Now, experts have begun work on assessing the potential for leasing in the field of renewable energy sources (hereinafter – RES) in Ukraine, based on the analysis of the world’s best practices in leasing in the field of RES.
The work is carried out in the following areas: review of international development of RES and the introduction of leasing in this area, analysis of RES at the national level and assessment of the potential for leasing in Ukraine.
At this stage, experts collect statistics on the field of RES at the international and national levels, assess key trends in this market, explore the best practices of leasing in RES at the global level.
The use of RES is becoming increasingly important, given the growth of energy consumption, the need to save traditional fuel and energy resources and improve the environment, as well as increase the country’s energy security. The key prerequisites for the development of the sector are high energy intensity in Ukraine, reduction of traditional fuel and energy resources and rising prices for these resources. Indicators of the industry development indicate a tendency to increase generation capacity in RES, increasing the share of RES in the energy balance.
However, the development of renewable energy requires significant investment. One of the main sources of their involvement may be leasing. The introduction of RES leasing in Ukraine has great potential for future growth, especially given the limited experience. Such prospects are evidenced by the best international practices that can also be implemented in Ukraine.
For its part, the state can make the industry more attractive to investors and leasing companies through appropriate government incentives, including through tariffs and other forms, reforms in the areas of electricity and heat, licensing and regulatory work, tax benefits and other measures.
The benefit of this study will be to identify the needs of the renewable energy sector, including in financing, sources and ways to meet these needs, possible new niches for leasing companies, ways of interaction between leasing and RES, as well as measures to increase the attractiveness of the industry, including due to rule-making.