The Union of Ukrainian Entrepreneurs (SUP) and Konfederacja Lewiatan held a roundtable discussion in 🇵🇱 Warsaw on the topic:
“Opportunities for Ukrainian and Polish companies in the decentralization and demonopolization of Ukraine’s energy market.”
Participants, including business representatives and experts from Ukraine and Poland, exchanged views on cooperation in the energy sector, investment potential, and partnerships aimed at restoring energy generation in Ukraine, which has been severely damaged by Russian attacks.
Key Discussions:
- During the event, experts discussed:
- The integration of innovative solutions for energy efficiency
- The role of small-scale generation in heating and electricity production
- The development of bioenergy
- The engagement of Polish businesses in recovery and development projects in Ukraine.
Opening Remarks
Andrzej Rudka, Advisor to the Board of Konfederacja Lewiatan, emphasized the success of the partnership with SUP in organizing such joint events, which are crucial for supporting Ukraine and its energy sector during wartime.
Serhii Leivikov, Head of SUP’s Committee on Energy Efficiency and Sustainable Development, highlighted the transformation of Ukraine’s energy sector during the war:
“Not by choice, but out of necessity, Ukrainian engineering companies in the electricity, heating, gas, and water supply sectors are becoming more efficient, flexible, and capable of performing tasks swiftly and effectively — because the country’s energy supply depends on it.”
He strongly advocated for the decentralization of Ukraine’s energy sector, suggesting:
- Smaller generation capacities using all available fuel types (preferably with lower carbon footprints)
- Smart grids
- Rooftop solar energy
- Water purification and wastewater treatment
- The modernization of pumping stations
There is significant potential for Polish businesses and European institutions to participate in these processes.
Energy Market Changes & Challenges
Oleksandr Voltornist, an expert from SUP’s Center for International Cooperation, presented data on Ukraine’s energy structure and the impact of Russian attacks:
- Nuclear power plants (NPPs): 55.1% of total generation
- Thermal power plants (TPPs) & combined heat and power plants (CHPs): 29%
- Hydropower plants (HPPs) & pumped-storage power plants (PSPPs): 6.7%
- Solar power stations: 5%
- Wind power: 2%
- Bioenergy stations: 1%
Currently, the cheapest electricity in Ukraine comes from nuclear and hydropower, while the most expensive is from renewable sources (solar and wind).
The full-scale invasion and targeted terrorist actions by Russia have led to the destruction, damage, or occupation of over 70% of Ukraine’s total energy generation capacity.
Strategic Energy System Changes
To address these challenges, Ukraine needs:
- Greater support for the green transition
- Increased renewable energy share
- Strengthened decentralization of the energy system
Improved energy security and system resilience
Andrii Yerashov, Head of SUP’s Analytical Center, highlighted regulatory changes in Ukraine’s energy market and new opportunities for private businesses:
“Ukraine’s energy sector was previously highly centralized, making it difficult for mid-sized businesses to enter the market. Now, the government is gradually liberalizing procedures, creating opportunities for businesses — including Polish investors.”
Jakub Safiański, Director of the Energy Department at Konfederacja Lewiatan, stressed that energy independence from Russian gas and a reduction in fossil fuel reliance are top priorities for the entire European Union.
He pointed out that Poland is significantly reducing coal dependency while increasing renewable energy sources, particularly solar panels and wind power. Poland has numerous government grant programs and financial incentives supporting this transition, and a key feature of Poland’s success is the widespread adoption of solar panels in private households.
EU Support for Ukraine’s Energy Sector
The European Union has launched multiple initiatives to support Ukraine’s energy sector and help align it with EU standards.
One major initiative is the European Investment Bank (EIB)’s Ukraine Energy Support Plan, announced in October 2024. Under this plan, the EIB will invest up to €600 million in urgent energy projects in Ukraine’s public and private sectors.
This funding is provided through the EU’s “Ukraine Facility” financial assistance program and partially backed by the “EU for Ukraine” advisory and funding initiative.
The goal: Rebuild and modernize Ukraine’s energy infrastructure, integrating it with EU standards and accelerating its energy transition.
Reference: The SUP (Ukrainian Union of Entrepreneurs) is the largest business association in Ukraine, uniting over 1,200 companies of small, medium, and large businesses, free from the influence of oligarchic and state capital. The SUP’s mission is to create and develop a favorable business climate in Ukraine and abroad. It is an observer of Business Europe. In June 2024, the Union opened a European office in Warsaw.
