Over 63,000 attacks on energy infrastructure have been recorded during the full-scale war, with more than 700 of them being targeted strikes on critical facilities. By the end of 2024, Ukraine had lost approximately 10 GW of its power generation capacity.
These are the kind of numbers that speak for themselves. They clearly explain why decentralized energy, renewable sources and local hubs are no longer an innovation. They have become a matter of survival.
It is precisely under these conditions that communities and businesses are becoming the driving force behind the energy system’s transformation. Ukrainian cities, villages, industrial enterprises, farmers and developers are not waiting for the approval of state strategies and are creating new energy hubs locally. The war has changed priorities: energy independence has become a mission.
Businesses are investing in power generation – who is forming the foundation?
In the first half of 2025 alone, 591 MW of new generation capacity was commissioned in the regions of Ukraine. Among the new capacities are 84 MW of wind power plants (WPPs) and 101.4 MW of industrial-type solar power plants (SPPs). Additionally, private households installed SPPs with a total capacity of 84 MW.
Nearly every fifth company in Ukraine (or about 20%) is already investing in renewable energy sources (RES). For comparison, in 2023, there were only 6% of such companies. This means that over two years, the number has tripled.
An even greater number of companies, approximately 40%, state that they plan to invest in their own energy independence in the near future. They show the most interest in solar (51%) and wind energy (25%). Against the backdrop of the generation deficit, these are not just business initiatives – they are a contribution to national resilience.
Energy communities: a new level of community participation
Energy communities could become a new development vector. This is a format where citizens, local governments, and small and medium-sized businesses unite to create generation for their own consumption and to sell surplus energy.
In the European Union, the creation and operation of energy communities are regulated by a relevant legal framework. Specifically, by EU Directive 2018/2001 on promoting the use of renewable energy and Directive 2019/944 on common rules for the internal electricity market.
Ukraine is only beginning to form the regulatory framework for such associations. However, there are already examples of pilot energy community projects today. They have been created with the support of USAID, GIZ and other donors. For example, in the Vinnytsia region, a community project has been implemented where farmers installed a SES for irrigation, and in Lutsk, an HOA (homeowner association) is introducing rooftop panels and batteries for energy autonomy.
It should be understood that energy communities are not just about generation, but a new model of energy democracy. Instead of dependence on a single centralized system, a flexible, resilient network of local hubs is being formed.
The new trend: produce and store your own energy
One of the most notable development trends has become the «generation for own consumption» model. Businesses are increasingly building SPPs to cover their needs and minimize their dependence on the market.
The majority of such projects are implemented without state support. At the same time, the installation of SPPs allows businesses to reduce their energy costs by 20-40% annually. In combination with batteries, this represents a self-sufficient and flexible model.
A distinct trend is the integration of various sources (SPPs, storage units, gas piston generators) into a unified system that balances the load in real time.
Wind energy: prospects and barriers
Currently, according to various estimates, wind farm projects with a total capacity of over 4 GW are at the implementation stage.
For example, OKKO is already building a wind farm in Volyn (150 MW), DTEK has completed the second phase of the Tyligulska Wind Farm (400 MW) and the Poltava Wind Farm (650 MW) is preparing for launch.
However, large-scale growth is hampered by a number of systemic problems:
- the lack of long-term offtakers (power purchase agreements);
- debts under the «green tariff»;
- VAT on the import of wind turbines, unlike solar, biomass and hydro – wind power is still not exempt from VAT payment;
- the lack of guarantees for war risk insurance.
Such problems deter investments even in relatively safe regions, such as Zakarpattia.
At the same time, according to data from the Ministry of Internal Affairs, 90% of attacks in 2024 were carried out by drones, which makes the decentralization of generation even more relevant.
What business expects from the state
The statement from the European Business Association, addressed to the Ministry of Energy, clearly outlines the list of steps the state must take immediately:
- simplify permitting procedures;
- ensure the recognition of guarantees of origin for electricity in the EU;
- Postpone CBAM (environmental certification) until the full integration of Ukraine’s and the EU’s energy markets (market coupling);
- ensure market price caps aligned with European ones;
- extend tax benefits for the import of equipment, including wind farms.
This is a constructive agenda aimed not at criticism, but at creating the conditions for scaling solutions that are already working at the community and business levels.
Conclusion: the future has already begun
Today, communities are not waiting for orders from the center, but are taking the lead in energy restoration. Businesses of all levels are investing resources, developing their own solutions and partnering with donors and local authorities.
Ukraine already has its first energy community projects, industrial generation for self-consumption, dozens of local SPP, WPP and energy storage system projects; ready Ukrainian production of turbines and hybrid inverters, which is gradually replacing imports and much more.
However, a comprehensive strategy is needed to unite these efforts into a national framework. We have a unique opportunity — to create a modern, decentralized and flexible energy system that will not only survive the war but also become an example for other states.
Every community with an SPP, every company with a storage unit, every energy community is becoming more than just a project. They are becoming another step toward Ukraine’s energy stability.
Article author: Andrii Kalinov, Technical Director of NVP «ENERGO-PLUS» LLC.
