Is Ukraine Ready for an Energy Revolution?

The next energy revolution has already begun. Over the past few weeks, global energy news has been forming a very clear picture.

The European Union has identified the development of electricity grids as one of the key priorities of its energy policy. The United Kingdom is increasing investments in grid infrastructure to £89 billion.

In the United States, the rapid growth of data centers and artificial intelligence technologies is already transforming approaches to power system development.

International energy agencies forecast record growth in electricity demand over the coming years.

At first glance, these developments may seem unrelated.

However, they all reflect one fundamental trend.

The world is gradually moving beyond discussions of individual technologies toward the creation of modern energy systems in which power generation, electricity grids, energy storage, digital technologies, heating systems, and energy efficiency operate as a single integrated whole.

If only a few years ago the main question was, “How can we generate more electricity?”, today a different question is becoming increasingly important: “How can we build an energy system capable of supporting an economy shaped by digitalization and artificial intelligence?”

For Ukraine, this transformation is of particular importance.

The full-scale war has fundamentally changed approaches to energy security. At the same time, it has created an opportunity to build not the energy system of the past, but the energy system of the future.

Ukraine possesses a rare combination of strengths: substantial nuclear generation capacity, an energy system integrated with ENTSO-E, developed gas infrastructure, significant renewable energy potential, a high level of engineering expertise, and an exceptionally resilient energy sector.

At this moment, it is crucial not to lose strategic vision and to use post-war reconstruction as an opportunity to implement solutions focused not only on today’s needs but also on the challenges of the coming decades.

Ukraine has another strong competitive advantage that is still not discussed enough today.

Over the past fifteen years, Ukrainian entrepreneurs have invested billions of dollars in the development of renewable energy, bioenergy, distributed generation, modern energy infrastructure, and new technologies.

During the full-scale war, Ukrainian energy professionals, engineers, entrepreneurs, transmission and distribution system operators, government authorities, the National Energy and Utilities Regulatory Commission (NEURC), and international partners demonstrated the ability to adapt quickly, find unconventional solutions, rapidly restore critical infrastructure, and maintain the operation of the power system under conditions of constant attacks.

Today, this practical experience is one of Ukraine’s most valuable strategic assets.

The next step should be to scale this experience through effective cooperation among government institutions, Ukrainian businesses, energy infrastructure operators, and international financial institutions.

Strategic priorities should include:

• Development of modern electricity grids and Smart Grids;
• Creation of a modern generation mix combining baseload generation, flexible capacity, renewable energy sources, and energy storage systems;
• Scaling up energy efficiency and modern demand-side management mechanisms;
• Integration of the power sector, heating systems, and digital technologies into a single modern energy system.

The future competitiveness of nations will increasingly be determined not by the volume of individual types of generation.

It will be determined by their ability to build modern energy systems—reliable, flexible, digital, and open to innovation.

Ukraine has already proven its ability to adapt quickly to the most complex challenges.

The next strategic step should be the creation of a modern energy system that meets the needs of post-war reconstruction, European integration, and the economy of the future. This has the potential to become one of the country's most important long-term competitive advantages.

Serhii Savchuk, Deputy Chairman of the Supervisory Board, Ukrainian Energy Holding