Ukraine grapples with de-risking energy investments as destruction continues
As Ukraine faces its third winter of war, its energy system continues to endure significant challenges. Despite widespread destruction, conversations about rebuilding and modernising the country’s energy infrastructure are already underway, balancing immediate needs with strategic long-term investments.
In the article“Ukraine grapples with de-risking energy investments as destruction continues” by Camilla Nascher for S&P Global, Georg Zachmann, Scientific Lead at Green Deal Ukraina, shares his perspective on the path forward:
Strategic investments cannot wait. Zachmann emphasises that rebuilding Ukraine’s energy infrastructure requires a forward-looking approach—not just repairing what has been destroyed but also laying the foundation for a modern, resilient, and decentralised energy system.
De-risking investments. There is a need for international donors to collaborate with the Ukrainian state to establish guarantee funds. These funds could underpin contract-for-difference programs, ensuring financial stability for investors even in uncertain conditions.
Strengthening defenses. Enhanced air defences are critical to reducing the physical risks to Ukraine's energy infrastructure.
Market integration with the EU.Deeper market coupling with the EU, supported by well-designed capacity auction systems, could foster stability and encourage further collaboration.
Zachmann also points to the importance of ensuring resources are available to smaller developers alongside established players, unlocking Ukraine’s vast renewables potential while prioritising fair access to the best sites.