Energy Day 2024: Ukrainian business prepares for winter and strengthens energy independence

25/ 10/ 2024

Despite the challenges of war, Ukraine’s energy system demonstrates significant potential for sustainable development and independence. This was the central message of Energy Day 2024, organized by the European Business Association. The event brought together key players in the energy sector to discuss the achievements of 2024, winter preparation strategies, funding for energy projects, the development of renewables, and new opportunities for the private sector. Svitlana Mykhailovska, Deputy Director of the European Business Association, presented findings on Ukrainian businesses progress in energy autonomy. Key takeaways reveal that businesses are committed to diversifying energy sources and investing in distributed generation. Most companies do not anticipate significant operational changes during the winter season, with 82% planning to operate as usual. More details on the research results can be found at the provided link. Oleksii Kucherenko, Deputy Head of the Verkhovna Rada Committee on Energy and Housing and Communal Services, emphasized the importance of balancing centralized and distributed generation. He stressed that while distributed generation is an important component of energy security, it cannot quickly replace the base capacities provided by nuclear, thermal, and hydro generation. The state must play a key role in balancing the interests of consumer businesses and those in the energy sector. Oleksii Brekht, Acting Chairman of the Board at Ukrenergo, highlighted the importance of importing electricity from Europe and the development of distributed generation, particularly in front-line regions. He also reported the issuance of technical conditions for connecting 1.3 GW of new capacities. Olga Michellot, Co-Chair of the EBA’s Energy Committee and co-owner of Helios Strategia, underscored the need for Power Purchase Agreements (PPAs) to attract foreign investments and develop distributed generation. She noted that PPAs are essential for business as they enable access to foreign financing. Olga also mentioned challenges with securing grants and businesses fear of inspections by state agencies. She presented the company’s new energy management system (EMS) and called for more open dialogue between business and the government. Oleksii Dubovskyi, Head of the Exchange Committee of the Ukrainian Energy Exchange, noted the necessity of accelerating integration with the EU by implementing Market Coupling in the electricity market and adopting European rules and standards. Oleksii stressed the importance of protecting critical infrastructure, integrating decentralized generation into the overall energy system, and minimizing state intervention in the market. Andrii Konechenkov, Chairman of the Board of the Ukrainian Wind Energy Association, presented an analysis of the status and development prospects of wind energy. He noted positive trends in wind farm construction but stressed the financial challenges in the industry, particularly accumulated debts. Andrii proposed specific steps to streamline procedures and reduce the financial burden on investors. Oleksandr Havva, General Director of Market Operator JSC, outlined three main support options for renewable electricity producers: a green tariff, market premium, and guarantees of origin for green energy. He announced the first trades for guarantees of origin on the Market Operator platform and emphasized that guarantees of origin are a cost-effective tool for businesses to demonstrate their commitment to green energy development. Ihor Retyvov, Head of Regulatory Affairs at DTEK, noted progress in implementing guarantees of origin for electricity and emphasized the need for an internal market for such guarantees. He expressed concerns about accumulated debts in the sector and suggested creating a coordinating body to develop decentralized green energy. Viktoriya Pysmenna, Chief Legal Advisor at Elementum Energy, highlighted the market premium mechanism as promising, after addressing two main issues: the inability to pay premiums before advance payments and the signing of agreements between state enterprises (guaranteed buyer, TSO) to ensure genuine non-discrimination for RES producers who continue under the green tariff versus those transitioning to market sales with a premium. Viktoriya conducted a comparative analysis between the green tariff and the market premium, emphasizing the risk and unattractiveness of switching without payment resolutions, as the premium remains unpaid, and the greater restrictions on RES plants selling to the market rather than to the guaranteed buyer. Vladyslav Shevchenko, Commercial and Marketing Director of Helios Strategia, shared the companys experience in the current market conditions. He talked about Helios Strategias strategic focus on market mechanisms and positive trends in investor attraction. Vladyslav noted growing interest from local Ukrainian investors and a renewed focus on projects developed before the full-scale invasion. Oleksandr Martyniuk, Chief Renewable Energy Expert at the USAID Energy Security Project, provided a brief overview of USAID ESP’s support for Ukraine’s energy sector, covering legal regulation improvements, analytical support, and material assistance. Oleksandr spoke about major equipment purchases to restore damaged energy infrastructure and develop distributed generation, as well as plans for renewable energy. Oleh Pavlenko, Investment Director at Ukrenergo, reviewed Ukrenergos activities under wartime conditions and its collaboration with international partners. He highlighted the importance of international support and outlined priorities for network restoration and infrastructure modernization. Mr. Bram Romijn, Climate and Energy Attaché of the Embassy of the Kingdom of the Netherlands in Ukraine, emphasized the need for private sector involvement in Ukraine’s energy restoration. He outlined four key support areas for Ukraine’s energy sector: material assistance (transformers, generators), funding through international financial institutions, commercial partnerships with Ukrainian companies, and private sector development projects. He highlighted the Netherlands experience in renewables, especially wind and bioenergy, and the potential for collaboration. Oleksii Orzhel, Head of the Kyiv Office of the Energy Community Secretariat, focused on the strategic aspects of Ukraines integration into European energy markets. He discussed delays in meeting key deadlines, such as the transposition of the Electricity Integration Package, and announced the registration of two bills to expedite the integration process. Oleksii also addressed donor communications, especially with the IMF, regarding Ukraine’s energy development, noting that over €700 million has been allocated to support the energy sector. The Head of the Kyiv Office of the Energy Community Secretariat presented an important initiative to establish a financial fund for covering war risks in renewable energy projects, which could catalyze investment and highlighted that swift integration into European energy markets is a key factor for attracting investments and ensuring the stability of the country’s energy sector. We thank all speakers of Energy Day 2024 for their active participation, deep expertise, and valuable contributions to the productive discussion about the future of Ukraine’s energy sector. Special thanks to the conference partners: DTEK, Helios Strategia, and the Ukrainian Energy Exchange. Partners

Despite the challenges of war, Ukraine’s energy system demonstrates significant potential for sustainable development and independence. This was the central message of “Energy Day 2024,” organized by the European Business Association. The event brought together key players in the energy sector to discuss the achievements of 2024, winter preparation strategies, funding for energy projects, the development of renewables, and new opportunities for the private sector.

Svitlana Mykhailovska, Deputy Director of the European Business Association, presented findings on Ukrainian businesses’ progress in energy autonomy. Key takeaways reveal that businesses are committed to diversifying energy sources and investing in distributed generation. Most companies do not anticipate significant operational changes during the winter season, with 82% planning to operate as usual. More details on the research results can be found at the provided link.

Oleksii Kucherenko, Deputy Head of the Verkhovna Rada Committee on Energy and Housing and Communal Services, emphasized the importance of balancing centralized and distributed generation. He stressed that while distributed generation is an important component of energy security, it cannot quickly replace the base capacities provided by nuclear, thermal, and hydro generation. The state must play a key role in balancing the interests of consumer businesses and those in the energy sector.

Oleksii Brekht, Acting Chairman of the Board at Ukrenergo, highlighted the importance of importing electricity from Europe and the development of distributed generation, particularly in front-line regions. He also reported the issuance of technical conditions for connecting 1.3 GW of new capacities.

Olga Michellot, Co-Chair of the EBA’s Energy Committee and co-owner of Helios Strategia, underscored the need for Power Purchase Agreements (PPAs) to attract foreign investments and develop distributed generation. She noted that PPAs are essential for business as they enable access to foreign financing. Olga also mentioned challenges with securing grants and businesses’ fear of inspections by state agencies. She presented the company’s new energy management system (EMS) and called for more open dialogue between business and the government.

Oleksii Dubovskyi, Head of the Exchange Committee of the Ukrainian Energy Exchange, noted the necessity of accelerating integration with the EU by implementing Market Coupling in the electricity market and adopting European rules and standards. Oleksii stressed the importance of protecting critical infrastructure, integrating decentralized generation into the overall energy system, and minimizing state intervention in the market.

Andrii Konechenkov, Chairman of the Board of the Ukrainian Wind Energy Association, presented an analysis of the status and development prospects of wind energy. He noted positive trends in wind farm construction but stressed the financial challenges in the industry, particularly accumulated debts. Andrii proposed specific steps to streamline procedures and reduce the financial burden on investors.

Oleksandr Havva, General Director of Market Operator JSC, outlined three main support options for renewable electricity producers: a green tariff, market premium, and guarantees of origin for green energy. He announced the first trades for guarantees of origin on the Market Operator platform and emphasized that guarantees of origin are a cost-effective tool for businesses to demonstrate their commitment to green energy development.

Ihor Retyvov, Head of Regulatory Affairs at DTEK, noted progress in implementing guarantees of origin for electricity and emphasized the need for an internal market for such guarantees. He expressed concerns about accumulated debts in the sector and suggested creating a coordinating body to develop decentralized green energy.

Viktoriya Pysmenna, Chief Legal Advisor at Elementum Energy, highlighted the market premium mechanism as promising, after addressing two main issues: the inability to pay premiums before advance payments and the signing of agreements between state enterprises (guaranteed buyer, TSO) to ensure genuine non-discrimination for RES producers who continue under the green tariff versus those transitioning to market sales with a premium. Viktoriya conducted a comparative analysis between the green tariff and the market premium, emphasizing the risk and unattractiveness of switching without payment resolutions, as the premium remains unpaid, and the greater restrictions on RES plants selling to the market rather than to the guaranteed buyer.

Vladyslav Shevchenko, Commercial and Marketing Director of Helios Strategia, shared the company’s experience in the current market conditions. He talked about Helios Strategia’s strategic focus on market mechanisms and positive trends in investor attraction. Vladyslav noted growing interest from local Ukrainian investors and a renewed focus on projects developed before the full-scale invasion.

Oleksandr Martyniuk, Chief Renewable Energy Expert at the USAID Energy Security Project, provided a brief overview of USAID ESP’s support for Ukraine’s energy sector, covering legal regulation improvements, analytical support, and material assistance. Oleksandr spoke about major equipment purchases to restore damaged energy infrastructure and develop distributed generation, as well as plans for renewable energy.

Oleh Pavlenko, Investment Director at Ukrenergo, reviewed Ukrenergo’s activities under wartime conditions and its collaboration with international partners. He highlighted the importance of international support and outlined priorities for network restoration and infrastructure modernization.

Mr. Bram Romijn, Climate and Energy Attaché of the Embassy of the Kingdom of the Netherlands in Ukraine, emphasized the need for private sector involvement in Ukraine’s energy restoration. He outlined four key support areas for Ukraine’s energy sector: material assistance (transformers, generators), funding through international financial institutions, commercial partnerships with Ukrainian companies, and private sector development projects. He highlighted the Netherlands’ experience in renewables, especially wind and bioenergy, and the potential for collaboration.

Oleksii Orzhel, Head of the Kyiv Office of the Energy Community Secretariat, focused on the strategic aspects of Ukraine’s integration into European energy markets. He discussed delays in meeting key deadlines, such as the transposition of the Electricity Integration Package, and announced the registration of two bills to expedite the integration process. Oleksii also addressed donor communications, especially with the IMF, regarding Ukraine’s energy development, noting that over €700 million has been allocated to support the energy sector. The Head of the Kyiv Office of the Energy Community Secretariat presented an important initiative to establish a financial fund for covering war risks in renewable energy projects, which could catalyze investment and highlighted that swift integration into European energy markets is a key factor for attracting investments and ensuring the stability of the country’s energy sector.

We thank all speakers of Energy Day 2024 for their active participation, deep expertise, and valuable contributions to the productive discussion about the future of Ukraine’s energy sector. Special thanks to the conference partners: DTEK, Helios Strategia, and the Ukrainian Energy Exchange.

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