25.03.24 / renewable energy Germany / Press Release

Ukraine seeks German support for laying the groundwork for a renewables-based, secure energy system of the future

March 25, 2024,

Berlin, Germany

Razom We Stand, in collaboration with E3G, Berlin Economics, and the Low Carbon Ukraine Project, hosted the event "Rebuilding Ukraine’s Power Sector with Green Technologies: Opportunities for German-Ukrainian Cooperation" on March 21, 2024. The event, held in conjunction with the Berlin Energy Transition Dialogue 2024, brought together experts, industry representatives, politicians, and investors to explore opportunities for transforming Ukraine’s electricity sector.

Speakers at the event included Halyna Yanchenko, People’s Deputy of Ukraine and Head of the National Investment Council; Dave Jones, Global Insights Programme Director at EMBER; Volodymyr Kudrytskyi, CEO of NPC Ukrenergo; Yevhen Didichenko, Co-owner and CBDO of KNESS Group of Companies; and experts from the Low Carbon Ukraine Project, Rooven Stubbe and Pavel Bilek.

The purpose of the side event was to foster practical discourse on crucial investments and engagement of German businesses in affordable and clean energy technologies, digitalisation, and grid innovation in Ukraine. Discussions focused on primary areas of investment for replacing coal-fired power plants with clean, decentralised generation, laying the groundwork for a renewable energy-based, secure energy system of the future.

Maksym Bevz, Team Lead on Renewable Energy Campaigns and Green Rebuilding of Ukraine at Razom We Stand, stressed the critical role of international collaboration in the reconstruction of Ukraine's energy sector: "The devastating impact of Russia's deliberate attacks on Ukraine's energy infrastructure highlights the pressing necessity for collaborative efforts and investment in renewable energy technologies to replace fossil fuels. To adequately meet the demand for electricity while retiring coal-fired capacities, Ukraine needs at least 12 GW of newly installed capacity to be added by 2034, and a total estimated investment of $17.2 billion is needed to rebuild its power sector based on green technologies. Ukraine and Europe must work together to stop our addiction to dirty fossil fuels and move towards a climate-optimistic and peaceful future.”

The event delved into Europe's and Ukraine's energy transitions, emphasising challenges and opportunities while discussing investment attraction and renewable energy projects. Participants emphasised German businesses' potential role in Ukraine's energy transformation and stressed the need for international support in rebuilding Ukraine's energy infrastructure.

At the event, Ember’s David Jones presented the European Electricity Review 2024 report, providing analysis of trends in electricity generation and demand data for 2023 in all 27 EU countries and showcasing the region’s progress in transitioning from fossil fuels to clean energy.

Razom We Stand presented and distributed copies of its new policy brief, "Ukraine’s Power Sector Outlook for 2024 - 2034: Investing in Old Coal-Fired Power Plants or New Decentralized Green Generation". The paper provides an overview of the current status of Ukraine's power sector and provides investment needs assessment, highlighting the opportunities for renewable energy deployment and accelerated energy transition.

The event underscored the commitment of both Ukraine and Germany to accelerating the transition to renewable energy and fostering collaboration to build a more sustainable and resilient energy future.

Pieter de Pous, Programme Lead at E3G’s Coal to Clean team, said: “Ukraine’s energy transition under the most trialling of circumstances is redefining what energy security means. Making its power system more decentral and more renewable has allowed it to avoid the black-outs from the winter of 2023/2024. Replacing its damaged coal plants with renewable and storage technologies and boosting interconnectors with the EU will now help continue to improve Europe’s energy security and fight climate change. Both Germany and the EU should give their full support to these efforts now.”

Pavel Bilek, Deputy Head of the Low Carbon Ukraine project, said: “Every crisis creates an opportunity, and the war damage sustained by Ukraine’s energy system can provide the opportunity to build back better. It is also clear that Ukraine’s future is firmly in Europe, and this integration can be highly beneficial for both sides. Ukraine can attract considerable investments into reconstruction and future greening of the power system through better integration of renewable energy sources, including utility-scale solar PV and wind power. What we are already observing is the larger decentralisation of the Ukrainian energy system and integration of small-scale renewables, which will require substantial upgrades to grids and introduce the need for larger flexibility and energy storage solutions. These investments can help to achieve Ukraine’s and Germany’s shared goals for decarbonisation and energy transition but also are important for the energy security of the European continent at large”.

Volodymyr Kydrytskyi, CEO of NPC Ukrenergo, said: “Even during the war, we see that a few hundred megawatts of solar and wind are installed yearly. There is still a significant investment appetite for deploying these green technologies in Ukraine. What we currently need to do is to stimulate the appearance of the balancing technologies on the Ukrainian market, those being battery storage systems, flexible gas peakers and biofuel power plants. This is essential to integrate more renewables and to substitute existing coal-fired generation, which, at this historical stage, will have to be gradually phased out. Moreover, replacing a few big coal plants with hundreds of small generation facilities nicely spread around the country will make the power system more resilient and less vulnerable to attacks from the adversary.”

Ievgen Didichenko, a co-owner and CBDO of KNESS Group said: "What does Ukraine's energy system need now? Flexibility and Reliability. The ancillary services market is experiencing a stable deficit of capacity reserves for primary and secondary frequency regulation. Energy storage systems can fully meet today's market needs, as they have significant advantages over traditional generation. We have developed our own technological solution that has competitive advantages. With our energy storage system, significantly lower capital investments are required per 1 MW for frequency containment reserve and automatic frequency restoration reserve services in the power system. This is ensured by the technical design and smart operation algorithms.

A co-owner of KNESS also stated that  through own investments the company is currently implementing a pilot project of producing ESS with 12 MW certified capacity for frequency containment reserve in the energy system of Ukraine. According to Ievgen Didichenko putting the system into operation is planned by the end of this year and the first test megawatt will be put on the ancillary services market this spring.

ENDS

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.

Download Razom We Stand’s new policy brief, "Ukraine’s Power Sector Outlook for 2024 - 2034: Investing in Old Coal-Fired Power Plants or New Decentralized Green Generation".

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

press@razomwestand.org