This report describes the urgent challenges facing Ukraine''s energy sector and outlines tangible actions that can be taken by Ukraine and its partners to address its immediate energy security vulnerabilities ahead of the winter, while bolstering long-term resilience.
Domestic and imported gas is put into Ukraine''s storage facilities between mid-April and mid-October and is withdrawn during the winter months. During winter peak times, Ukraine''s five storage sites at the western border can supply up to 40% of daily transit volumes.
Ukraine is home to the continent''s second-largest gas-storage capacity, after Russia, totalling nearly 33bcm. It has more storage space than big economies like Germany, which boasts around...
This study investigates the utilization of energy storage facilities in the Ukrainian power system, focusing on their capabilities in the ancillary services market. The authors present the outcomes of a modeling approach that simulates the operation of a hypothetical energy storage facility using real historical data.
This special report from the IEA, Ukraine''s Energy Security and the Coming Winter, provides an energy action plan for Ukraine and its partners to help the country meet its energy needs through the challenging months ahead.
Ukraine''s energy system has been targeted since Russia launched its full-scale invasion of the country in February 2022. These attacks on key infrastructure have recently increased and intensified, posing a huge threat to reliable access to power, heating and communications services across Ukraine this winter.
This special report lays out 10 key energy actions to reinforce the country''s energy security – essential to its security overall – at this critical juncture. It will take stock of the war''s impact on Ukraine''s energy sector, identify key risks for the coming winter and outline immediate actions that Ukraine and its partners could take in response. While the main focus is on Ukraine, the report also examines the energy situation in Moldova.
Ukraine''s energy landscape has been profoundly impacted by the ongoing conflict, with extensive damage to infrastructure and a historical reliance on Russian imports for traditional energy sources like coal, gas and nuclear fuel. Rebuilding the centralized, Soviet-era energy system is no longer a viable option. Attempts to restore a fossil fuel or nuclear-based centralized sector are fraught with military risks, slow progress, high costs for the state and lack of appeal for private investors wary of vulnerable, high-risk assets. Razom We Stand reports.
Smart grids and microgrids offer the highest levels of energy security and the ability to withstand damages, threats and terrorist/military attacks. Microgrids can enhance the resilience and security of power systems, protecting them from various threats, including terrorist attacks. These small-scale, localized energy systems can operate independently or in conjunction with the main grid.
Despite its cities'' readiness to embrace decentralisation, Ukraine''s current legislation presents significant barriers. There is no clear definition of ''decentralised electricity generation'' in the law, and the process of connecting to the grid is not adequately regulated. In 2023, amendments to the Law of Ukraine ''On the Electricity Market'' introduced the concept of ''small distribution systems''. Still, this definition must address the broader question of how decentralised/distributed generation should function.
The legislation also needs to clarify how energy storage systems can be integrated into decentralised generation or how small distribution systems can connect existing installations in cities without establishing a distribution system operator (DSO). In practice, individual plants connect to DSO networks, but there needs to be a legal framework for combining these plants into local networks in small towns. This gap makes it financially unviable to generate more electricity due to the need to pay for grid transit once connected.
To address these issues, Ukraine must develop a clear algorithm for small networks and incorporate appropriate changes into the regulatory framework. This algorithm should include provisions for borrowing, where the state provides guarantees in the form of assets and grants large loans for implementing ''green projects'' backed by these sovereign guarantees.
Another significant barrier is the absence of the concept of an ''energy community'' in national legislation. While positive changes were made to the Law of Ukraine ''On the Electricity Market'' in the summer of 2023, focusing on active consumers and their right to supply electricity to neighbouring consumers, communities still have little interest in creating their own energy projects due to financial capacity, organisational activity, awareness and negotiation challenges.
As Ukraine rebuilds its energy infrastructure, embracing decentralisation and microgrids is crucial for enhancing energy security, resilience and independence. However, overcoming legislative and regulatory barriers is essential for unlocking the full potential of these technologies. By fostering a supportive legal framework and encouraging the development of energy communities, Ukraine can pave the way for a more secure and sustainable energy future.
Russia''s invasion of Ukraine has had far-reaching impacts 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.
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.
The reconstruction of Ukraine''s energy sector will initially focus on repairing the damage done to the power grid and other energy infrastructure (such as pipelines for district heating networks, thermal power plants, and transmission networks) to ensure energy access for citizens and enable building efforts. Once these initial steps are implemented, continuing efforts to expand renewable energy should be prioritized in reconstruction.
About Ukraine energy storage economics
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