The implemented projects have helped cover part of the energy deficit caused by the shelling. At the same time, a number of systemic problems have accumulated.
Today, Ukraine is at a critical stage of energy transformation. The war has demonstrated that the centralized energy system is extremely vulnerable to attacks. Therefore, the development of renewable energy sources (RES) and distributed generation is not just an element of European integration but a fundamental condition for energy security.
The current realities allow us to evaluate the potential of RES not only from the perspective of climate goals but also as a crisis response to the challenges of wartime. However, this path is difficult, and it has many barriers that require thoughtful consideration and systemic decision-making.
Growth in generation is a positive accompanied by difficulties
According to official data, in 2024 alone, 967 MW of new distributed generation capacity was installed in Ukraine. Since the beginning of 2025, more than 100 MW on top of it.
This is a real breakthrough, and it has become possible thanks to the initiatives of businesses, local communities, and the support of international partners.
The implemented projects have helped close part of the deficit caused by shelling on traditional generation. They also allow for the rapid restoration of energy supply in individual communities when large transmission networks are still non-operational.
Cogeneration units, block-module boilers, small solar and wind power stations play a paramount role, and today they are starting to operate even in frontline regions.
At the same time, it must be acknowledged that a number of systemic problems are accumulating. One of the biggest challenges is the debt to investors in the development of renewable energy sources.
Currently, the debt for already produced “green” electricity exceeds 25 billion UAH. This is not just a number—it’s a limitation for further development, as most of the stations were built with foreign loans.
Therefore, delays in payments automatically result in exchange rate losses. In some cases, these losses amount to more than 30% of the total investment.
Business is ready to invest, but expects stability
In 2025, new alternative energy projects with a capacity of hundreds of megawatts are announced. Private companies, despite the risks, continue to build new solar and wind power stations, particularly in the central and western parts of the country.
This shows the investors’ faith in the Ukrainian market, but also highlights the need for a predictable environment.
Unfortunately, renewable energy support auctions have not met expectations. For example, last year, out of a 110 MW quota, less than 1 MW was realized. There are many reasons: lack of trust in guaranteed buyers, a complicated system of connection to the grid, overly regulated prices, etc.
Business wants to work, but without guarantees and flexible regulatory mechanisms, investors will not come.
Energy storage – a must-have element of the new system
Renewable energy sources (RES) cannot be the sole backbone without energy storage systems. Their importance has already been recognized by our European neighbors. For instance, this year, Poland has begun to construct the largest energy storage facility in Europe with a capacity of 981 MWh. In total, the country plans to build 85 storage facilities with over 17 GWh of stored energy.
This is an important signal for Ukraine. Without such technologies, it is impossible to effectively integrate the new generation. We have sun and wind, but we lack the tools to manage their fluctuations. Energy storage is not just a trendy technology; it is the response to today’s challenges.
Regulatory framework: urgent changes needed
Today, developers face additional barriers. One of them is the mandatory contribution of €10,000 per each 1 MW of planned capacity when connecting to the grid.
This mechanism was intended to filter out “phantom” projects, but in practice, it has made life more difficult for those who genuinely intend to build. Under current conditions, it’s another factor holding back investment.
Moreover, the launch of “green” premium mechanisms has proven to be overly bureaucratic. Businesses face numerous approvals, delays, and a lack of transparency. This undermines trust in the market and in state support tools.
The energy future is more than just generation
Renewable energy is not an isolated segment but part of the overall energy balance. In the short term, solar and wind generation can partially cover the deficit caused by the destruction of thermal power plants and damage to the grid. However, the key to stability lies in comprehensive solutions.
These include:
- development of energy storage systems;
- modernization of the grid;
- simplification of grid connection procedures;
- systemic financing instruments;
- transparent policies for investor engagement.
Ukraine’s potential is enormous. Experts note that land suitable for renewable energy development could generate up to 150 times more electricity than the entire Ukrainian economy currently needs.
But for this potential to become reality, trust is essential—trust in the rules of the game, in partnership, and in the goals the country sets for itself.
The recipe for growth: responsibility and partnership.
Developing renewable energy is not just about electricity.
It’s about trust in the market, the ability to build in wartime, and the future of energy independence.
It’s about new jobs, tax revenues, investment, and modernization.
It’s about the future of communities and businesses.
Ukraine already has the potential to become a regional leader. However, to achieve that, we must clear the path: lift debt-related constraints, facilitate grid access, and create a predictable environment where business can thrive.
We need a real dialogue between the state, business, and communities free from populism, excessive fiscal pressure, and bureaucratic red tape.
Energy independence doesn’t begin with slogans. It begins with action. Every installed megawatt of “green” capacity is a step forward to a new resilient energy future for Ukraine.
Source:
portal liga.net
