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Solar energy popular down south
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18 June 2010
Rapid growth of alternative energy
in Ukraine has been hindered for two
reasons, the high cost of such systems,
and the prevailing low gas prices in the
country. Nonetheless, use of renewable
energy sources is becoming more popular
in Ukraine. One of the most widely used
options is roof-mounted solar collectors
used for generating hot water. Mykhaylo
Taranov, sales manager of Buderus (part
of Bosch Thermotechnik) told UBI that
more than 50 percent of his clients buy the
systems to cover domestic energy needs
and install them in private houses. Among
corporate customers, the owners of small
and middle-sized hotels are the most active.
UBI visited Pavel Gromovoy in Feodosiy
town (close to Simferopol, the capital of
Crimea). Gromovoy explained that he
had installed three solar panels on his own
house, covering an area of 250 sq m. “Last
summer we only used 15 cu m of gas,
because during this period the hot water
was supplied through the use of solar energy.
But during the winter we were only able
to use the flat solar panel collectors for 10
days.” He added that due to use of the new
equipment his gas prices had been reduced
- in Ukraine the price depends upon the
level of demand.
For instance, if a family spends less than
2.5k cu m per year it pays 0.5 hr per cu m,
6k cu m of fuel costs 1 hr, more (up to 12k
cu m) – 1.44 hr and so on. “Our reduced
consumption lets us pay just 1 hr per cu m
(excluding mounting of solar panels which
pushes the cost up to 1. 44 hr),” explained
Gromovoy. He added that he expected the
savings from the panels would cover their
cost within six to 10 years.
UBI also visited Paradise Harbour, a 35-
room private hotel in Semenovka village,
close to Feodosiy town. The hotel was built
in 2008 and last year its owners decided to
install 30 solar panels. “During the summer
we used 2k cu m to 3k cu m and in winter
near 1k cu m of gas per month,” one of the
owners, Oleg Karpov, told UBI. He said
that the new equipment helps him to avoid
using gas during the daytime in summer.
“There were a few exceptions, such as
cloudy weather, and in summer months the
gas boiler is frequently turned on during
the night,” said Karpov. The owners of this
hotel have invested thousands of dollars
in this project and believe that it will pay
back their money in seven to 10 years.
Another advantage of this equipment,
says Karposv, is that it avoids any potential
problems connected with gas delivery. In
summer when the population in Crimea
increases by three to five times and the
consumption of hot water and electricity
sharply increases there can sometimes be
breaks in energy supply. That means that
guests may find themselves without hot
water and as a result they decide to leave
the hotel. Using solar panels is seen as a
way of helping to solve such problems and
attract regular visitors.
Climactically Ukraine is within the middle
range of solar radiation intensity which
means that there is a reasonable opportunity
for households to use solar panels. The
average annual level of solar radiation per
sq m of flat surface varies from 1000 kW
in the north of Ukraine to 1400kW in the
south. The duration of direct solar radiation
per year maintained at 1600 to 1700 h in the
north-west, 1900 to 2000 h in the central and
eastern regions and 2300 to 2400 h in the
south of Ukraine. Consequently, it is Crimea
that stands to benefit most from deployment
of solar energy systems.
Ukraine solar systems are forecast to
operate with an efficiency of at least 50%
and provide reduced water-heating costs
from March to November in the southern
part of Ukraine and from April to October
in the northern part. In summer the panels
can deliver 90% and in low season 50% of
hot-water supply in private houses.
The payback period for the installation
of solar panels is a contentious question. As
long as the equipment is expensive (near
E600 to E700 per panel) and the local gas
price far lower than in open markets, the
payback period will be relatively long. The
payback period is typically one calculated
by solar panel installation companies - but
in practice the real period before payback
can be much longer than that advertised.
For example, in some offices it is said that
you can get a return on the investment
in three to four years, but in fact it often
takes 30 years. When selling the systems, a
customer may be shown attractive figures
made on the basis of the solar panel cost,
which is often 40% of the total value of the
entire system which can include additional
transmission equipment, mounting and
others elements that are not included. So
consumers are advised to calculate carefully,
including any hidden costs, before investing
in such a project in their own house. But
any move to open market pricing of gas, or
incentivising renewable energy, would make
the proposition far more attractive
Source:
by Aleksandra Nekrashuk, Ukraine Business Insight
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