International cooperation must be at the heart of Ukraine’s energy sector transformation

Leading up to the Ukraine Recovery Conference (URC), the Europe Ukraine Energy Transition Hub (EUETH) hosted a high-level discussion on the future of Ukraine’s energy sector and its critical role in the nation’s path toward EU membership. The event highlighted the need for close cooperation between Ukrainian, European and transatlantic partners in order to ensure a swift implementation of the reforms needed for Ukraine to rebuild a functioning energy market, to align itself with EU regulations and to achieve its climate goals.

Ukraine’s energy sector is facing a two-pronged challenge: maintaining electricity supply this winter while a significant portion of its generation capacity has been damaged or destroyed and planning for a secure, resilient, and clean energy ecosystem aligned with EU principles and ambitions. EUETH has invited Ukraine’s policymakers and leading private sector representatives to meet with senior EU counterparts to discuss potential solutions to these major challenges.

“Transforming the energy sector is a major task for any nation, especially given the challenges Ukraine currently faces,” pointed out Simon Schäfer-Stradowsky, Executive Director of IKEM and one of EUETH’s leaders. “Long-term cooperation with international partners and key stakeholders must therefore take centre stage in Ukraine’s efforts to rebuild its infrastructure and decarbonise its energy supply. EUETH aims to support this process by building capacity for necessary legal and economic reforms and fostering an environment for exchange between authorities, companies and researchers.”

Maroš Šefčovič, Executive Vice President of the European Commission, was equally clear in his keynote address: “Since the start of Russia’s unprovoked and unjustified aggression, the EU has shown unwavering support for Ukraine and has taken great strides to bring Ukraine closer to Europe. Building on the already accelerated market integration of the Ukrainian energy system, the energy sector will be a key driver for Ukraine’s integration into the European Union and the transformation of both the European and Ukrainian economies. By engaging relevant stakeholders and disseminating European and global best practices, platforms like EUETH help build a bridge towards a common energy future.”

The event was also addressed virtually by the Prime Minister of Ukraine Denys Shmyhal, who emphasised Ukraine’s resilience. “Due to the latest Russian missile and drone attacks, 42 energy units, totalling nearly 9.2 GW, have been damaged. That is why support from our partners is critical for the survival and stability of our energy sector. Despite the ongoing war, Ukraine is actively working on modernizing its energy sector in accordance with European standards. For us it is important to carry out post-war reconstruction in line with the concepts of Build Back Better and Build Back Greener.”

Ann Mettler, Vice President, Europe, Breakthrough Energy commented: “Russia’s aggression has been a wakeup call for all of Europe that we need to double down on investing in the clean energy transformation. Ukraine, with its skilled workforce and abundant renewable and mineral resources, is poised to become a key enabler of that transformation – if we have the foresight to start planning now. By developing a pipeline of cutting-edge technology projects and supporting Ukraine’s economic and political integration into the EU, we can jump-start the world’s first green post-war recovery,” she said. “It’s about more than just supporting Ukraine, though; we must also learn from them. Ukraine’s efforts to maintain its energy grid while under attack have been heroic and are a lesson to us all regarding what it will take to build an energy resilient Europe.”

The event brought together over 40 experts from all energy-related fields, including high-profile representatives from all major Ukrainian energy market players: Oleksiy Chernyshov (Naftogaz of Ukraine), Ihor Syrota (Ukrhydroenergo), Volodymyr Kudrytskyi (NPC UKRENERGO), Valeriy Tarasyuk (National Commission for State Regulation of Energy and Public Utilities), Maksym Timchenko (DTEK), Nataliya Boyko (Advisor to the Prime Minister of Ukraine) and Ievgeniia Kopytsia (IKEM) joined the roundtable discussion on the current needs and the future of the Ukrainian energy system.