UBBC supported a well-attended Ukraine Energy transition conference at CMS law firm 31st May. A precis of the event would say; Ukraine has suffered very heavy energy infrastructure losses due to Russian targeting – with capacity roughly half what is used to be. While the country can endure this in summer, the winters are another matter. So, there is a short-term immediate urgency to rebuild energy capacity. However also a simultaneous longer-term vision to rebuild as a diversified, green energy production estate, that has the capability to export green energy to EU.
The longer-term vision is that Ukraine can become an energy hub for EU, and exporting largely green energy from solar, wind, hydro and hydrogen sources and thermal battery storage. This involves integrating and modernising the national grid with EU grid – something that has already largely been achieved, but many grid distribution centres have been destroyed. Currently the EU is importing electricity to Ukraine, but in the medium term this should reverse. This is contingent on Ukraine building a modern, diversified and green energy capability, which is possible with investment and an end to the war.
In the short term, Ukraine must use gas turbines to generate electricity, mend its grid system and rebuild with new technologies. Larger companies and organisations are using their own electricity generators to supplement when the grid and power goes down, but there is a great demand for more of these generators in the short term.
Simultaneously the longer term modernisation strategy is also being implemented where possible, but this will take much longer, largely because Ukraine has hitherto had a few large scale nuclear and other reactors and large hydro systems on the rivers (that Russian has destroyed) , rather than a much more diversified smaller green structure, and significant investment and funds are required to rebuild the new formats. Key investors include EBRD, and EIB, EIFC, UK Gov energy grants, Green for growth fund, and the Ukraine economic trust fund, that enables rebuilding to occur.