Investment needs, associated with rebuilding Ukraine's power sector and providing a resilient electricity supply for the recovering economy are estimated at 17 bln USD, according to a new analytical paper released by Razom We Stand, a leading advocate for real energy security in Ukraine and Europe.
The policy brief, titled "Ukraine's power sector outlook for 2023-2024: investing in old coal-fired power plants or new decentralized green generation?", is released in conjunction with the Berlin Energy Transition Dialogue Conference, which takes place in Berlin on March 19-20.
"Achieving real energy security for Ukraine and the rest of Europe requires strategic investment in renewable energy and smart decentralized solutions. The devastation inflicted upon Ukraine's centralised energy infrastructure by petro-dictator Putin underscores the critical importance of embracing decentralised, resilient and clean energy solutions based on renewables. We must confront Russia’s energy terror by mobilizing both public and private investments to deploy wind, solar, energy storage and other clean energy solutions at war time pace. This will not only revamp Ukraine’s electricity sector and make it fit for EU accession and future-proof in the face of the climate crisis but can also create a shining example for the rest of the world”, - said Svitlana Romanko, Founder and Director of Razom We Stand.
To discuss the findings Razom We Stand is organizing a side event in collaboration with E3G, Berlin Economics and the Low Carbon Ukraine Project. The event will take place on March 21, 2024, from 15:00 to 18:00 CET in Germany, Berlin 10178, Neue Promenade 6.
Plans to phase out coal-fired power in Ukraine were first officially announced by Ukrainian government in 2021 at the UN climate conference COP26 in Glasgow - a few months before Russia launched its full-scale invasion. A significant part of Ukraine's energy infrastructure was damaged as the result of a deliberate terror campaign targeting critical facilities with drones and cruise missiles. Nearly all coal-fired power plants have been damaged by air strikes or hostilities, a number of power units are beyond repair, and many mines in the Russian-occupied territories have been flooded and destroyed. As of February 2024, the cost of direct damage to Ukraine's energy sector infrastructure from Russian attacks was estimated by the World Bank at USD 10.7-12.9 billion.
Capacity losses of Ukrainian TPPs and CHPs amount to 8,000-12,000 MW, which is 30-50% of their total installed capacity according to the Ministry of Energy of Ukraine. Even before the war the need for their replacement was quite urgent. Built in 1960-1970ies Ukrainian thermal power plants consume 30% more coal per kWh than the European average, indicating high inefficiency and severe wear and tear of Soviet-built units. These fatcs speak for the critical need for strategic investments in new clean, renewable-based power generation and accelerated energy transition in Ukraine.
Razom We Stand analysis shows that to replace inefficient, polluting and war-damaged coal-fired power plants, Ukraine requires investments ranging from $11.6 to $17.2 billion in decentralized power generation technologies like wind, solar, cogeneration, and energy storage.
Razom We Stand's policy brief underscores the urgency of transitioning to clean energy solutions. Rapid investment in modern renewables, mainly solar and wind power, energy storage, bioenergy, and decentralised, highly efficient cogeneration is the most cost-effective and reliable solution for rebuilding Ukraine’s power sector. Its presentation during the week of the Berlin Energy Transition Dialogue Conference aims to stimulate dialogue between Germany and Ukraine to attract public and private investments in decentralized energy projects in Ukraine.
Download the full report here.
ENDS
Event in Berlin:
In conjunction with the Berlin Energy Transition Dialogue 2024, Razom We Stand will host a side event on March 21, 2024. The event, titled "Rebuilding Ukraine’s Power Sector with Green Technologies: Opportunities for German-Ukrainian Cooperation," aims to explore opportunities for transforming Ukraine’s energy sector and discuss primary areas of investment to replace coal-fired power plants with clean, decentralised generation. The event also highlights the urgent need for international support in rebuilding Ukraine's economy in the spirit of the European Green Deal.
About Razom We Stand: Razom We Stand is a Ukrainian organisation active internationally, calling for a total and permanent embargo on Russian fossil fuels and an immediate end to all investment into Russian oil and gas companies by phasing out fossil fuels globally.
Quotes from Svitlana Romanko provided herein may be used for publication with appropriate attribution.
Svitlana Romanko has appeared in top international press, including Der Spiegel, Le Monde, Bloomberg, The Hill, Politico, Washington Post, CNN, NBC, Financial Times, The Guardian, and; a detailed list is here.
For media inquiries, please contact:
Paraic Walker
International Communications Specialist
Razom We Stand
[email protected]
