Russia continues to try to plunge Ukraine into darkness. The relentless shelling is exacerbating the collapse of the energy system, and in the harsh winter conditions, Ukrainians are facing a new test of resilience. However, the crisis is not only a test, but also an opportunity for a qualitative reboot of the sphere it has affected. And this is not only a matter for the government. Developing modern solutions is impossible without involving experts and establishing communication. That is why the Ukraine Crisis Media Center launched a series of collective interviews entitled “Ukraine: European Code,” the first of which was devoted to current problems in the energy system and Ukraine’s integration into the EU.
Journalists from various cities in Ukraine, including Zaporizhia, were invited to participate in the online discussion.
Experts involved: Alexander Dombrovsky, Chairman of the Board of Global 100 RE Ukraine; Volodymyr Omelchenko, Director of Energy and Infrastructure Programs at the Razumkov Center; Olena Pavlenko, President of the DiXi Group analytical center.
The event was moderated by Valeriy Chaly, Chairman of the Board of the Ukrainian Crisis Media Center and Ambassador Extraordinary and Plenipotentiary, who noted that the purpose of such collective interviews is, on the one hand, to assist the government in conducting technical negotiations on accession and, on the other hand, to convey to Ukrainians what EU membership will bring them.
Presenting the topic, Volodymyr Omelchenko noted that Ukraine was once the largest transit country for electricity supplies. Every year, up to 30 billion kWh of electricity was transited to the Warsaw Pact countries. But after that, for obvious reasons, the systems were disconnected. “Full synchronization with the European Union has not yet taken place. Technically, it happened at the beginning of the war, and that actually saved us. But we have not yet been able to synchronize the system commercially. This means that our commercial terms for both gas and electricity do not meet the requirements of the European Union. As a result, even in the current conditions of a huge deficit, we cannot purchase electricity, not only because it is significantly more expensive than in Ukraine, but also because of internal restrictions,” commented Volodymyr Omelchenko.
At the same time, Alexander Dombrovsky, Chairman of the Board of Global 100 RE Ukraine, noted that when synchronizing relations with the EU, the interests of Ukrainian business must be taken into account: “…so that our economy and our industry can survive.”
His thesis that “Ukraine can be a completely independent energy country in peacetime. We can rely on our own energy resources” sounded encouraging.
Reflecting on the prospects of becoming closer to the European Union, Olena Pavlenko said, in particular, that by 2027, the EU plans to be climate neutral: to produce no emissions. To have 80 percent renewable energy sources. And for no house, old or new, to produce any emissions.
Valeriy Chaly noted that the topic of discussion touches not only on issues of energy efficiency or energy reform. It is a reform of the country as a whole: “Off the top of my head, I can see several issues: local self-government, decentralization, salary reform. And people are also forced to save energy in their budgets. But we have now learned, especially this winter, to save it. And now it is important for everyone to know what kind of light bulb is used, even in amperes and watts. There is an understanding that energy does not arise on its own, that these watts can be transferred somewhere else. People have realized that light is valuable! And I will just say that I really hope the government understands that shifting these problems onto the people is the wrong move…”
Dialogue: question and answer
– What is the real situation in our energy system, particularly with regard to generation, and what does this mean for consumers, primarily for people and for businesses? This question was addressed to the speakers by Oleksandra Bodnyak, a journalist from the Lviv-based media outlet ZAXID.NET.
Volodymyr Omelchenko:
– The power deficit reaches up to seven gigawatts at certain times, which is a lot, accounting for up to 35 percent of total consumption. In addition to the power deficit, there are also network constraints. Kyiv can only provide 25 percent of its internal generation, while 75 percent depends on the Trypilska Thermal Power Plant and the Rivne Nuclear Power Plant. That is why the Russians are attacking those substations so that, supposedly, there is generation, but it is impossible to transmit electrical energy. That is why we have huge blackouts.
Unfortunately, our air defense does not currently have the means to protect our energy infrastructure 100%. I don’t think any air defense in Europe has such means.
What should be done in this situation? We have to work to survive, we have to save people somehow. Where possible, we need to connect generators, where possible, we need to turn off hot water and provide heating instead.
Oleksandr Dombrovskyi:
– Spring will come anyway. The main thing for us is to wait until March, when it will be a little warmer and there will be more sun. Because, if I’m not mistaken, we currently have somewhere between 11 and 10 gigawatts of solar energy. As soon as the sun is higher, solar generation will be greater, and it will be fed into the grid. Another huge advantage of solar generation is that it is distributed and not concentrated in one place. This is exactly what part of the country’s generation should be like.
The second position is the energy storage system. There are large systems and small ones for houses and apartments, and solar panels need to be installed. The issue is money, because only a small number of people can afford it, and they have already done so, but the question is how to provide cheap solar energy through storage systems, whether through condominium associations, city councils, or existing international aid instruments. This can and must be done now, because we will also need to provide ourselves with electricity in the spring, summer, and fall, and there will be problems with heat. Now we have a problem with cold, and there will be a problem with heat.
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Tetyana Logvina from the Kharkiv publication Visti Zmiivshchyny raised an issue faced by local communities:
“In 2022, there was a lot of talk about installing small mini-power plants and cogeneration facilities in small communities. They even came to Ukraine and were already in communities, but many have not been installed to this day because there is no legislative framework. There is a very complex problem with permits”.
Olena Pavlenko:
– There are two major reasons: corruption and bureaucracy in Ukraine. I cannot say what specifically applies in this particular case, what the specific reason is, but you are absolutely right. What could and should have been resolved in the first year of the war has still not been resolved. And only now, when the energy system has been almost completely destroyed, is everyone starting to quickly resolve and simplify this procedure.
The task for our government, including the regulator and the agencies under the ministries, is to simplify. Of course, there are security issues. There must be some basic things in place to prevent tragedies, but the duration of connections is one of the huge problems right now, when people are trying to build this decentralized generation.
Valeriy Chaly:
– Decentralization, government responsibility, local decisions – these are all interconnected issues. Therefore, we cannot give you a definitive answer right now, but we will actively raise this issue with members of the government, starting with Minister Shmyhal and others. And we must not remove responsibility from local authorities either. You say that the issue is not being resolved there. If people just sit at home freezing or go outside to freeze, nothing will happen. People need to take the initiative, approach politicians, approach those who make decisions, and ask them what they are here for in the first place.
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Natalia Zvorigina from the Zaporizka Pravda newspaper asked what innovative technologies in the field of energy supply the EU is offering Ukraine.
Oleksandr Omelchenko:
We need to see what equipment needs to be urgently imported from Europe to repair this station, if possible, the substation. If not, then we need to urgently import some generators and make operational decisions.
In this regard, we primarily need generators from Europe. Transformers, switches, various relays, as well as equipment that has been damaged at thermal power plants and CHPs. Strategically speaking, we need investment from Europe in the development of decentralized generation, biomethane, and thermal modernization of buildings.
Oleksandr Dombrovskyi:
The European Union is helping Ukraine a lot, not only with ready-made equipment, but also with repairs. However, every day, objects are being destroyed. We have thermal power plants that have been hit several times and repaired several times. And all these necessary elements, blocks, equipment, transformers, are brought in and assembled from practically all over the world. The European Union’s Energy Community has a special fund, and hundreds of millions of euros are being collected to purchase everything needed to repair our system.
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Question from Yulia Shabli, Visti Plus, Poltava region:
– What changes will regional consumers – households and small businesses – experience in the context of Ukraine’s integration into the EU energy market in the coming years? Should we expect tariffs to rise, and how does the state plan to balance European rules and social justice?
Oleksandr Omelchenko:
– I believe that the price of electricity for the population will not increase in the near future. It was 4.32 per kilowatt-hour, and it will remain so, because politicians cannot afford to increase prices for the population at this time. The same applies to gas prices. As long as the war continues, prices will remain stable.
Unfortunately, prices for industry are currently very high and in many cases already significantly exceed European prices, which creates problems with the competitiveness of Ukrainian large enterprises’ products and, accordingly, reduces our foreign exchange earnings.
Another very big problem that needs to be urgently addressed at the government level is the so-called CBA, or Carbon Border Adjustment Mechanism, which is a mechanism whereby the European Union, starting this year, from 2026, and then increasingly apply additional duties on products from other countries, including Ukraine, that do not meet environmental standards, i.e., products manufactured with emission levels that exceed European Union standards.
Because of this, Ukrainian industry could lose at least three to four billion dollars a year. Therefore, I think that the government should urgently address this issue in order to postpone this SIBA for three to four years, at least for the duration of the war.
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Yulia Sabaeva from the publication Ostrov continued the discussion of the problem of tariff burdens on business. She told the story of entrepreneur Myroslava Golonych from Zakarpattia, who owns two coffee shops and a craft production facility in the city of Svalyava. Recently, the woman posted on social media about her electricity bill. Are tariffs for businesses destroying small businesses for good?
Oleksandr Omelchenko:
“Let’s make a comfortable tariff for small businesses, for industry, let’s just issue a decree that everyone is happy with? It seems like an easy problem to solve. Take the decree, sign it, set the rate at 3 hryvnia per kilowatt for small businesses, 2 hryvnia for large businesses, and 1 hryvnia for the population. Why not do it? But this is impossible to do given the huge electricity shortage. Everyone is short of it, and no matter what tariffs the government regulates now, energy companies simply won’t be able to operate at a loss with these low tariffs.
As for compensating small businesses for the existing tariffs, where can we find the money? Our state budget is also in huge trouble, currently in a state of war.
Discussions on the energy component of Ukraine’s European code provided a comprehensive overview of the crisis’s pain points and the directions that need to be taken to modernize the country’s energy system.
Oleksandr Dombrovskyi:
“We must do everything possible and impossible. First, to survive, to preserve the country, and to restore peace in Ukraine. Second, I am 100% convinced that we, together with the European Union, must do everything possible and impossible to become an energy-independent state and make maximum use of the resources we have. I can clearly state that Ukraine has sufficient energy resources and technological solutions, not from yesterday’s energy industry generation, but from tomorrow’s and today’s tomorrow, to accomplish this task. Moreover, I am convinced that Ukraine, with its technological potential, ranging from drone production to sustainable energy policy, can be a shining example today for the European Union and beyond.
Volodymyr Omelchenko:
– Strategically, we are late. If we had engaged in European integration in a timely manner by adopting the relevant legislation and synchronizing it not now during the war, but 20-25 years ago, we would have a completely different energy sector, a completely different economy, and a completely different country.
Right now, we cannot integrate all European rules 100 percent, because it takes time, and our people are not so well off today; they cannot afford to pay market prices for electricity, natural gas, and heat right now. It should be noted that there is significant opposition within the European Union itself to the rules they are adopting. For example, they adopted legislation on the closure of nuclear power plants, and now they are reviewing the whole issue. This means that we need to be flexible depending on the situation in Ukraine. The government should implement European integration processes where we need them. There are also things that could harm and undermine the specific capabilities of our economy and socio-economic stability. In this regard, the government must very firmly defend, first and foremost, our national interests and the interests of consumers.
Valeriy Chaly:
– European integration, even though we all support it, cannot be an end in itself, simply membership. The goal is to improve the lives of Ukrainian citizens, improve business conditions, and improve Ukraine’s role in the international division of labor.
The government’s position, and that of all decision-makers, is now as follows. First, the people of Ukraine will always support you if you defend the best possible conditions during the transition period, i.e., the issues you mentioned earlier. Second, extraordinary measures are needed in extraordinary circumstances, not just standard ones.
The world is dynamic. What we talked about today may be outdated tomorrow. I think that there should be state analytical centers somewhere in Ukraine that should monitor how the situation is changing with regard to the American position, small nuclear reactors, and the geopolitical situation. Because I absolutely agree with that. If the war continues, we cannot talk about some of the things we have discussed. Therefore, the physical safety of people comes first, followed closely by energy security.
What’s next for Ukraine’s energy system – watch the video at the link
Photos provided by UKMC
The collective interview took place as part of the project “European Integration: Simply About Complex Issues” with financial support from the International Renaissance Foundation.
Source: MIG
