For stable functioning, the Ukrainian energy infrastructure requires modernization

January 18, 2024

Bohdan Kaliuta, Winner of the Essay Contest by the USAID ESP

Essay of the Winner of the Contest, Bohdan Kaliuta

In the modern world, energy security issues are especially acute for countries that became independent only a few decades ago and are actively developing. Energy security is one of the most critical components of national security, and its provision is crucial for the country’s sustainable development and well-being.

The concept of energy security consists of the country’s ability to provide reliable and stable access to energy resources necessary for its functioning and development. It includes the supply of fuel for power plants, gas for domestic use, etc. Energy security also considers the importance of conservation and rational use of energy resources and minimizing the environmental impact of energy processes.

Ukraine has its peculiarities and challenges in the field of energy security:

War. Military actions lead to damage to energy infrastructure, including power plants, gas pipelines, transformer substations, etc. It leads to interrupting the supply of electricity and other types of energy.

Increase in energy prices. A war with Russia may cause energy prices to rise, affecting electricity, heat, and hot water bills.

Provision of coal. The war led to a decrease in production due to the occupation of coal areas and created a shortage of coal for those enterprises that worked on it.

Dependence on the import of energy resources. One of the main problems of Ukraine’s energy security is its significant dependence on importing natural gas and other energy resources. The country imports fuel for its power plants and domestic use. This dependence creates risks to energy security, especially in political conflicts and geopolitical tensions. To reduce this dependence, Ukraine is developing alternative energy sources, implementing energy efficiency, and reforming the energy sector.

The dependence on energy imports. One of the key issues of energy security is the country’s dependence on imported natural gas and other imported energy resources. The country keeps importing fuels for power stations and household consumers. This dependence is a source of risk for energy security, in particular in a situation of political conflicts and geopolitical tensions. In order to reduce this dependence, Ukraine develops alternative energy sources, enhances energy efficiency, and reforms the energy sector.

The state of the energy infrastructure. A long-term multiyear investment program will be required to enhance the reliability of the Ukrainian infrastructure and ensure its proper functioning. The obsolete equipment and networks are to be modernized, and new technologies are to be introduced to enhance efficiency and reduce energy losses.  Reliable electricity and fuel supplies are critically important for energy security. Ukraine pursues reforms in the energy sector, in particular, to make it more energy efficient and competitive. Yet the war has disrupted the reforms and destabilized the sector.

Energy efficiency and alternative sources of energy. Ukraine pursues programs to enhance energy efficiency and employ alternative energy sources, such as solar energy and wind energy. These are to reduce the dependence on imported energy resources and – at the same time – achieve a more environmentally friendly energy sector. The development of these sectors is an important goal to achieve sustainable energy security.

Geopolitical and economic challenges. Ukraine faces serious geopolitical challenges associated with the war with Russia. It causes instability in the energy market and new risks for energy security. The current economic and financial restraints are barriers to the development of the energy sector.

Some comprehensive interventions will be needed to ensure the energy security of Ukraine:

Diversification of energy sources. Ukraine is to extend its energy sources. The country must not be dependent on one major source. Ukraine has to extend the use of alternative energy sources and improve its energy efficiency.

Modernization of the infrastructure. The Ukrainian energy infrastructure needs modernization to stay reliable and function properly. The old equipment and networks are to be replaced and new technologies are to be introduced to enhance the system’s efficiency and sustainability.

Energy efficiency. It means effective control over energy consumption and the introduction of energy-efficient technologies to reduce the dependence on foreign sources and ensure stable energy supplies.

Diplomatic efforts. It is important to develop international partnerships for stable energy supplies. The cooperation with other countries and international organizations might reduce the energy security risks.

Developing the domestic energy markets. A competitive energy market will support the development of the energy sector and ensure affordable and reliable energy services for all consumers.

All these are to strengthen the energy security of Ukraine, reduce the country’s vulnerability to external threats, and establish a sustainable energy system that would meet the country’s actual needs. Energy security plays a vital role in the nation’s development and ensures adequate living standards and economic growth.