Renovation of Ukraine's energy infrastructure: challenges and solutions

"Winter is approaching. And for us, winters are always difficult, but this one is also dangerous," stated Ukrainian President Volodymyr Zelensky, as reported by RBC-Ukraine

The full-scale war in Ukraine has intensified the need to ensure the country's reliable energy security. Constant attacks on energy infrastructure and challenges related to military operations create new tasks for the restoration and modernization of the energy system, which must also align with the requirements of European integration.

One of the key incidents was the combined damage to Ukraine's energy system on August 26, 2024, targeting nuclear power plants. According to an analytical assessment by the Razumkov Center, the attack temporarily disabled three units of the Rivne Nuclear Power Plant and one unit of the South Ukrainian Nuclear Power Plant. This led to a loss of 1.5 GW of capacity, which worsened energy imbalances amid high temperatures that increased electricity demand by an additional 1.2 GW.

In September, the base capacity of Ukraine's Unified Energy System was provided by 8 nuclear power plant units generating about 5.4 GW of energy. Additional maneuvering capacity was provided by 4-6 units of thermal power plants (TPPs) and combined heat and power plants (CHPs), as well as hydroelectric plants (HPPs and PSHPs), which together produced an extra 2.7 GW. However, worsening weather conditions significantly reduced the efficiency of solar power plants, halving their contribution to the overall power generation.

Due to military actions and technical issues, an average of 560 settlements were left without electricity in September, 50 more than in the previous month. Alarmingly, the number of such settlements has been increasing for the past five months, with 300 remaining without power for more than two days.

According to a UN report, Ukrainians should expect power outages this winter lasting from four to 18 hours a day.

The International Energy Agency (IEA), in its report "Ukraine’s Energy Security and the Coming Winter" outlined several key measures to stabilize the energy system. These include:

Enhancing the physical and cybersecurity of infrastructure,
Accelerating the supply of repair equipment,
Decentralizing power supply,
Increasing the capacity of cross-border energy interconnections,
Expanding gas reserves in underground storage,
Implementing backup heating systems,
Encouraging energy conservation among consumers and continuing investments in energy efficiency.

Energy Efficiency Programs in Ukraine

In the context of the energy crisis and the pursuit of energy independence, energy efficiency programs in Ukraine are gaining particular relevance. The state, international organizations, and the private sector are actively working to implement various initiatives aimed at reducing energy consumption and improving energy efficiency.

Major Energy Efficiency Programs in Ukraine:

National Programs: Coordinated by the State Agency for Energy Efficiency and Energy Saving of Ukraine and the Ministry for Communities, Territories, and Infrastructure Development, such as the "Energy Efficiency in Public Buildings in Ukraine" program, which funds thermal renovation, repair of war-damaged buildings, and the introduction of renewable energy in public facilities nationwide.
Bank Program "Warm Loans": Provides state compensation for energy-efficient measures in residential buildings. These funds can be used for wall insulation, window replacement, installation of modern heating systems, and more.
Energy Efficiency Fund's Program "Energodim": Aimed at financing energy-efficient projects in multi-apartment buildings, including facade insulation, elevator replacement, installation of individual heating units, and other measures for multi-story housing of condominium associations (OSBBs).
Regional Programs: Many regions have their own energy efficiency programs, which may offer additional incentives and benefits for residents and businesses.
International Technical Assistance Programs: Ukraine, as a country actively integrating into the European space, receives significant support from international partners in the field of energy efficiency, including:
- European Bank for Reconstruction and Development (EBRD),
- U.S. Agency for International Development (USAID),
- German Society for International Cooperation (GIZ),
- European Investment Bank (EIB).

Results of Energy Efficiency Programs: What Do We Gain?

Energy efficiency programs implemented in Ukraine and worldwide deliver significant benefits for both individual consumers and the economy as a whole. Here are some of the key achievements:

In recent years, energy-intensive cities have reduced energy consumption by 20% and greenhouse gas emissions by 30%.
Energy-efficient measures could save up to $100 million annually in major Ukrainian cities.
According to the International Energy Agency (IEA), energy efficiency measures could reduce energy consumption by 40% by 2040.

An example of savings from thermal modernization can be seen in School No. 137 in Dnipro, initiated by the Public Union UFEES, the founder of the ONOVA League.

"We urge local governments to take a crucial step towards energy-efficient modernization and actively participate in existing energy efficiency programs. This is vital to ensuring warmth and energy for residents during the challenging winter period ahead. Increasing the energy efficiency of public and residential infrastructure is a key prerequisite for achieving the energy independence of our state, which brings us closer to victory," said Yehor Stefanovych, Chairman of the Board of PU UFEES and Chief Coordinator of the ONOVA League.

Join the ONOVA League Project "Community Assistance Program in Thermal Modernization".

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