On 20 March 2025, the UNIT CITY platform hosted the large-scale event “The integration of renewables into Ukraine’s energy system: challenges and opportunities”, organised by the UN Global Compact in Ukraine together with ExPro Consulting with the support of UK International Development and the Ukraine Energy Initiative. The event brought together leading industry experts, business representatives and state institutions to discuss the key challenges and prospects of Ukraine’s energy transformation.
The speakers of the event’s first panel, titled “How will energy change in 2025?”, included, in particular, UWEA Board Chairman Andriy Konechenkov and representatives of some of the Association’s member companies, namely: the Deputy Director for Development of the Eco-Optima group of companies Yurii Fedak, senior partner of the law firm ALTELAW Olha Savchenko and the Head of Regulatory Affairs at DTEK Renewables Ihor Retivov.
During the panel discussion, the participants analysed the future changes in the field of Ukraine’s energy sector and its regulatory policy, discussed the key trends that will determine the industry’s development in 2025, and shared their vision regarding the integration of renewables into the country’s power system under wartime conditions.
Key conclusions of the discussion:
- The development of renewables as a priority: Ukraine is adhering to a course of expanding the use of renewables, in particular wind energy, which is an important step towards the state’s energy independence.
- Legislative changes and international influence: further improvement of the regulatory framework is expected, which will contribute to attracting investment into the national renewables sector and protecting it from the country’s risks.
- The flexibility of the power system: for the effective integration of renewables in Ukraine, it is necessary to develop balancing mechanisms, including energy storage systems.
- Challenges and risks: despite the positive dynamics, the speakers noted that market instability, financial barriers and technical constraints threaten to slow down the development of the sector and undermine investor confidence.
Andriy Konechenkov: “At present, the industry needs the resolution of three of the most pressing and critical issues: the continuation of the application of the cash-basis method for charging VAT for electricity market participants; granting permission for the development of detailed territory plans taking into account planning schemes, and not necessarily on their basis (as is currently envisaged by Draft Law No. 12283); and the provision of tax benefits on the import of wind energy equipment, which all other energy sectors have received. The resolution of these and other existing issues on the market could be accelerated by the creation of a separate Agency for the Development of Renewables, which would be subordinate to the Cabinet of Ministers of Ukraine”.
Yurii Fedak: “The basis of the new post-war energy system should be decentralised and highly manoeuvrable generation, which is why our company is moving precisely in this direction. This year, LLC “Eco-Optima” is beginning the construction of the Sokal wind farm, with a capacity of over 50 MW, and for next year the construction of another wind energy facility, with a capacity of as much as 100 MW, is planned. In addition, the company’s plans include the implementation of a 100 MW facility for the production of “green” hydrogen, with its subsequent transportation to Europe. I am convinced that the trend of the large-scale deployment of wind energy capacity in particular will continue in Ukraine, even despite certain difficulties, in particular with attracting financing for large projects, the lengthy procedure for developing and approving feasibility studies for connection, and the imperfection of certain requirements of the Transmission System Code”.
Ihor Retivov: “The development of smart grid technology, the large-scale integration of renewables, the build-out of energy storage networks – all of this is already happening today, so Ukraine has no alternative other than to adapt to the relevant European and even global approaches. DTEK Renewables, understanding this, has singled out for itself three key areas of activity at present: increasing its own portfolio of renewables projects, attracting international financing for it and ensuring sustainable development”.
Olha Savchenko: “If there were no problems in our industry, it would not be developing. However, it is important to direct efforts not only at solving the physically present problems, but, first and foremost, at the causes that lead to their occurrence. Here we are talking about an untimely response, or no response at all, to the first “negative” signals or reactions of the industry (which, accordingly, also leads to the spread of distrust among investors), the discrepancy between theoretical regulation and the practical context and state of affairs, as well as the setting of such strategic indicators and goals as are in fact impossible to achieve within the set timeframes given the existing market and regulatory conditions”.
Overall, the event became an important platform for open dialogue between representatives of the state, business and the expert community. The participants emphasised the need for a comprehensive approach to reforming the energy sector, which includes investment in technologies, the modernisation of infrastructure and legislative initiatives. UWEA extends its gratitude to the organisers for the opportunity to present a comprehensive vision of the players of Ukraine’s wind energy market regarding the further development of the industry and Ukraine’s energy system as a whole.
