Russia’s invasion of Ukraine has had far-reaching effects on the global energy system. In Ukraine, a very different energy crisis is unfolding as Russia has directly targeted Ukraine’s energy infrastructure with waves of missile attacks, leaving the power grid severely damaged. These attacks have led to rolling blackouts across the country, worsening the humanitarian crisis.
Rebuilding Ukraine’s energy system will be essential to enabling both broader reconstruction efforts and the return of economic activity. There are two principles that should guide efforts to rebuild Ukraine’s energy system: ensuring energy security and independence and deepening the connection and economic relationship between Ukraine and the European Union. To accomplish both, Ukraine should develop its potential renewable energy resources. Renewable energy, including wind, solar, and biomass, are abundant in Ukraine. Developing these resources will support domestic power generation, thereby bolstering Ukraine’s energy security and independence. Ukraine has ample potential to become an energy exporter after the war, thereby supporting the European Union’s decarbonization and energy security goals.
As with broader reconstruction efforts, the renewables sector will need substantial financial support from both public and private partners. Creating a market that can attract capital and compete with other countries pursuing renewable energy will require improvements to Ukraine’s renewable policy framework. Expanding renewable energy generation will depend on significant grid modernization efforts and greater storage and export capacity to manage variable generation across the system.
To successfully unlock the potential within Ukraine’s renewable energy sector, several key questions should be addressed:
- How can renewable energy help meet Ukraine’s future energy needs?
- What projects should be prioritized in the near and medium term to enable the effective integration of renewables in the power sector?
- What role can international institutions and donors play?