All over the world, countries are rapidly transitioning to renewable energy sources (RES), but this shift is often happening faster than the infrastructure can be upgraded.
As a result, the systems cannot withstand the load. A striking illustration of this is Spain, which experienced two major blackouts on April 28 and May 20, 2025, that crippled the power grid across the entire Iberian Peninsula.
Among the reasons previously cited were weather fluctuations, the risk of cyberattacks on grid control centers and planned sabotage of energy infrastructure.
Yet the truth turned out to be simple yet bitter: the system simply couldn’t handle the new challenges.
The vulnerable grid: lessons from Spain’s case
In Spain, where over 70% of generation on the blackout days came from solar and wind energy, the system failed to maintain stability. When one facility shut down due to voltage fluctuations, others began to disconnect automatically.
Frequency fluctuations, lack of synchronization, and insufficient cross-border integration with other EU countries created a domino effect. Spain effectively became an energy island without sufficient reserves to maintain grid balance.
This incident exposed a systemic flaw in energy networks prioritizing renewable penetration without parallel investments in storage infrastructure, smart grid technologies, operational flexibility, or demand response capabilities.
The Ukrainian experience: grid resilience under wartime conditions
It is paradoxical that Ukraine — a country that has endured the most extensive attacks on energy infrastructure in the world — managed to maintain system balance.
A focus on decentralization, integration into the European ENTSO-E grid, rapid restoration efforts, and initial steps toward deploying energy storage systems have laid the foundation for energy resilience.
At the same time, the system still faces a critical need for flexible generation capacity capable of responding quickly to instability. In the medium term, this means over 2 GW of new capacity will be required.
It is equally essential to develop energy storage reserves that can support stable system performance under fluctuating output from renewable sources.
Financial strain: mounting debts and the threat of lost confidence
The accumulated debts to green energy producers have become one of the main obstacles to the sustainable development of renewable energy in Ukraine.
The problem dates back to 2020, worsened during the COVID-19 pandemic and reached a critical scale following the full-scale invasion.
According to the largest industry associations in the green energy sector, total debt owed to renewable electricity producers has exceeded 22 billion UAH.
According to official information, the debt of the National Energy Company «Ukrenergo» to the Guaranteed Buyer for green electricity currently amounts to 16.3 billion UAH.
Payments for 2022 and 2024 remain the most problematic. Only 63.9% of the amount due for 2022 has been paid, while the payment level for 2024 stands at 87%.
The data highlight a systemic failure by the state to meet its commitments. In practical terms, this undermines investor trust, stalls new project development and delays key strategic decisions, including engagement in upcoming green energy auctions.
A separate issue concerns the imbalance calculation formula applied in 2021–2022, which has been ruled by the courts as inconsistent with applicable legislation. Renewable energy producers are now calling for its revision and a fair reassessment of the compensation owed by the state.
Market participants expect the establishment of a transparent formula agreed upon with both generators and the market operator, along with a realistic debt repayment plan.
This is not just an economic issue; it is a matter of the state’s reputation amid efforts to attract investment in a strategic sector. Without resolving it, discussions about the «new energy» risk remaining mere rhetoric.
Business focus: shifting from generation to storage
Despite the challenging economic situation, Ukrainian businesses are demonstrating newfound maturity. While the priority in 2024 was the installation of solar power plants, demand for energy storage equipment is growing in 2025.
Banks note that businesses have begun investing in their own energy storage systems to reduce reliance on the grid and improve energy efficiency.
This indicates a shift in focus—from mere generation to the rational use and management of energy. Such an approach aligns with the best global practices and signifies a maturing market.
Renewable Energy’s Future: beyond sun and wind
Transitioning to renewable energy is the right move, but it is not enough. Investment in infrastructure is essential. Otherwise, even the «greenest» energy system can simultaneously become the most vulnerable.
Key Priorities:
- Flexibility: flexible generation capacity, hybrid systems, demand-side management.
- Storage: batteries, pumped-storage hydroelectric plants, hydrogen infrastructure.
- Integration: expansion of intersystem connections and synchronization with ENTSO-E.
- Regulatory Framework: transparent and stable compensation system, new support mechanisms.
Ukraine has already proven its ability to be a «laboratory» for the future of energy. Its experience can serve as an example for other countries aiming to build a safe, decentralized, and sustainable energy sector.
But for the renewable energy transition to become a security guarantee rather than a threat, we must think bigger – investing not just in solar panels, but in systemic solutions.
Article author: Vadym Lytvynenko, Executive Director of NVP «ENERGO-PLUS» LLC
Source: “Interfax-Ukraine”, RBK-Ukraine.
