Ukraine’s Energy Transformation: Investing in Renewables Amidst War

March 11, 2025

Insights from the Panel Discussion at Café Kyiv 2025

Berlin, 11.03.2025 – During Café Kyiv 2025, Ukraine2Power, Razom We Stand, and Free Ukraine Global organized the panel discussion "Mobilizing Investments in Renewable Energy for Ukraine’s Sustainable Reconstruction." The discussion brought together policymakers, energy experts, and representatives from the EU Commission in Ukraine to explore how Ukraine can rebuild its energy sector, strengthen energy security, and attract investment despite the ongoing war. Moderator Erik Kirschbaum, an American journalist and solar investor, highlighted how a strong legal framework can drive rapid renewable energy expansion, drawing a comparison to Germany’s experience. "In Germany, there are about 3.3 million photovoltaic roof systems in operation, with a total system output of 57 gigawatts. The 100,000 Roofs Program is a federal funding program that offers low-interest loans for solar power systems. It was introduced by the red-green government at the beginning of 1999 with the aim of promoting 100,000 solar power systems by 2004. In August 2001, the federal government's 100,000-roof solar power program reached a new record in applications." Local Businesses Taking Action While Ukraine still lacks sufficient foreign investment in its energy sector, local businesses are stepping up to ensure they have access to stable power. Vitaliy Radchenko, Managing Partner at CMS Ukraine, highlighted how Ukrainian companies are investing in their energy self-sufficiency: While Ukraine lacks significant foreign investment in its energy sector during the wartime, local businesses are stepping up to ensure they have access to stable power: "Supermarkets and petrol retailers are installing solar panels on their rooftops with battery storages, and breweries are setting up natural gas-fired turbines to keep their operations running. Energy security and continuity has become a priority for businesses, whose manufacturing or production processes need to rely on stable supply of electricity." However, investment remains a major challenge. Alexander Romanishyn, a politician and expert in investment and energy transition, Board Member of Think Tank and Ecosystem Builder ISE Group, pointed out that many energy projects struggle to get financing. "And actually, there are many bankable projects, definitely, but there are even more that are not. The issue often comes down to the quality of the projects. Banks receive a huge number of applications—tons of them. The same goes for IFIs, but unfortunately, not all of these projects can be financed. That’s one of the key challenges." Kostiantyn Gura, Director of GreenLabsKNU and Chair of Ukraine2Power, highlighted the critical role of civil society in Ukraine’s energy transition. "NGOs and civil society organizations can act as facilitators, building trust between investors and local developers. Also, they can provide technical expertise. Many communities want to transition to renewables but lack the knowledge to design and implement projects effectively. This is where partnerships between NGOs, local governments, and technical experts become essential. In fact, NGOs would help facilitate investments." Unlocking Investment and the Potential of Biomethane exports to EU as busniess case Anne Bercio, from the EU Delegation to Ukraine, emphasised the need for market reforms to ensure the constant growing development of the RES sector “There is a need to closely examine the reasons for repeated disinterest in RES auctions. How can Ukraine attract investors via renewable auctions, developing the sector further? Pilot renewables auctions in 2024 failed to attract interest both for solar and wind electricity generation. Only for hydro power small volumes were auctioned. The reasons are manifold and range from lack of investor confidence and reliable financing sources to debts and non-payments of the guaranteed buyer”. As a positive and very recent example of investments and Ukrainian exports she highlighted the development of biomethane exports via gas grid from Ukraine to the EU. Both sides, Ukraine and the EU, are currently working toward finalising the recognition of Ukrainian Biomethane as “green and sustainable” product with enormous potential due to the significant agrarian sector in Ukraine. "This is a remarkable development—it marks the first-ever biomethane import from a third country to the EU. While the shipments are still small, the potential is significant. “ Anne further highlighted the need for ongoing legal alignment efforts, including on the renewables EU Acquis, also with view of the upcoming legal screening exercise in the context of EU enlargement. Besides the purely energy related acquis Anne Bercio emphasised the need for full compliance of the legal framework on PPP (Public Private Partnerships) as they provide the legal ground for voluminous infrastructure investments. Further, Anne shared and update on opportunities that Ukraine Investment Framework offers for Ukraine’s energy sector. "Last year at the URC in Berlin, a €1.4 billion tranche was agreed upon and announced as part of the Ukraine Investment Framework. Just last week the third meeting of the Steering Board of the UIF took place where all EU Member States enabled the European Commission to begin contracting an additional EUR880m worth of UIF support for new programs. Focused on Energy, Municipal Infrastructure, Construction and Housing, these collaborations will benefit also EU companies through the procurement that will ensue." Civil Society’s Role in Ukraine’s Energy Future Inna Sovsun, member of the Ukrainian parliament, highlighted that while Ukraine is making progress, the full transition to renewable energy will take time—and those who engage now will have a significant advantage in the future. "If you are present in Ukraine now, once the war is over, there will be billions in investments flowing into the country. Businesses that already have a foothold, understand the local landscape, the people, and how the system works will find it much easier to scale up. On the other hand, those trying to enter the market from scratch after the war will face far greater challenges." She also shared a harrowing example of how energy shortages impact critical infrastructure: "In 2022, Chernihiv region was occupied by Russian forces. While the city itself wasn’t taken, it was completely surrounded, and for nearly 20 days, there was no electricity. I spoke to doctors there who told me how terrifying it was to care for a newborn who needed assisted breathing when the power went out. For days, they had to manually pump air into the baby’s lungs with their hands. That experience was so traumatic that they are now doing everything possible to ensure it never happens again. They will fundraise, install solar panels, set up energy storage—whatever it takes to avoid being in that position again." Energy Transition Amidst War The discussion at Café Kyiv 2025, organized by Ukraine2Power, Razom We Stand, and Free Ukraine Global, made clear: Ukraine’s energy transformation isn’t some distant goal—it’s already in motion, even under the toughest conditions. While challenges remain, businesses, policymakers, and civil society are finding solutions, whether by setting up solar panels on supermarket rooftops or securing investment for large-scale renewables. The legal framework still needs work, and financing isn’t always easy to secure, but Ukraine is proving that progress doesn’t wait. With ongoing reforms, growing local initiatives, and international backing, the country is not just getting through the crisis—it’s shaping a future where energy security and sustainability go hand in hand.

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