Argument (#12 December 2016)

Legal Framework for Renewables: Fragile Background or Sound Bedrock?

Iurii V. Rybak, Volodymyr V. Yaremkо

For the past decade, the renewable energy sector has firmly become one of the most fast-growing and attractive spheres for investment projects around the globe. Even having a long pay-off period, renewable energy sources have shown their immeasurable potential to growth along with promising lucrative level of returns for the investors. Simultaneously, given the significance of initial capital contribution accompanied by low energy prices, governments were struggling to encourage foreign investment into renewable energy sphere by enacting a variety of support schemes, subsidies and economic incentives for the investors. To that matter the “feed-in tariffs”, special taxation and customs duties regimes, green bonds and government-funded loans with low interest rates have been enshrined in internal laws of states in order to maintain the confidence of the investors in their fulfillment.


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