Floating solar power plants as a driver of economic development: European experience and prospects for Ukraine

Abstract

The economic rationale for developing floating photovoltaic power plants in Ukraine is examined using World Bank publications, European Commission research and evidence from implemented European projects. The objective is to identify how the use of water surfaces for electricity generation creates value for enterprises, communities and the national economy. A comparative case analysis covers the Netherlands, Portugal, France, Germany, the United Kingdom, Belgium, Austria and Switzerland, with an additional hydropower hybrid in Albania. European deployment is primarily associated with expanding the range of suitable sites, reusing industrial water bodies, supplying water utilities and industrial facilities, and integrating solar generation with existing hydropower assets. The resulting benefits include preserving agricultural activity, sharing grid infrastructure, reducing electricity purchases, developing engineering capabilities and attracting local investment. Comparing capital expenditure per megawatt alone cannot capture these effects. The paper distinguishes the financial return of a power plant, the combined return of an integrated business and the wider economic value of the investment. Technical reservoirs near daytime consumers, irrigation reservoirs and suitable hydropower sites are identified as promising applications for Ukraine. A transparent 100 MW scenario illustrates the scale of electricity production and retained agricultural income. Cooling, reduced water delivery for module cleaning and potential water conservation are considered within their site-specific boundaries. Published operational observations are distinguished from project forecasts and technical potential estimates. The findings support floating photovoltaics as a credible investment and economic development opportunity where electricity demand, water infrastructure and land preservation are aligned. The proposed assessment framework helps select projects that can translate these advantages into measurable outcomes rather than relying on a universal assumption of lower generation costs.