Ukraine Requires $20 Billion to Achieve 27% Renewable Energy by 2030

Ukraine has launched an ambitious $20 billion plan to boost the share of renewable energy in its energy mix to 27% by 2030. This move is a direct response to the extensive damage caused by Russian missile and drone attacks, which have crippled half of Ukraine’s energy-generating capacity.

On August 13, Prime Minister Denys Shmyhal announced the government’s approval of the National Renewable Energy Action Plan. This plan aligns Ukraine's energy strategy with European standards and aims to integrate the country’s energy future with the broader European community. It includes the addition of 10,000 MW of new generation facilities, focusing on solar, wind, biogas, and hydropower energy.

To achieve these goals, Ukraine will require substantial investments, with $20 billion needed to develop the renewable energy sector and rebuild infrastructure damaged by the conflict. The plan targets 33% renewable energy for heating and cooling, 29% for electricity generation, and 17% for the transport sector by 2030.

The Russian invasion has accelerated Ukraine’s shift towards renewable energy as conventional power sources have been heavily damaged. Rolling blackouts and significant damage to key facilities, including the Trypillia thermal power plant and the Dnipro hydroelectric power station, have plagued the nation. The International Monetary Fund (IMF) estimated the losses to Ukraine’s energy sector at $56.5 billion by early July.

DTEK, Ukraine’s largest private energy company, reported losing nearly 90% of its generating capacity due to Russian attacks. Despite this, DTEK aims to recover 60-70% of its power generation capacity by October. Additionally, the company has partnered with Danish wind turbine manufacturer Vestas to build Eastern Europe’s largest wind farm, announced in December 2023.

Ukraine’s renewable energy plan is not just an environmental strategy but a critical national security measure. With the right investment and international support, Ukraine is poised to strengthen its energy independence through a robust and diversified renewable energy sector.

Source: ESG News