On Friday, August 4, the inaugural meeting of the sectoral working group with representatives of electricity distribution and generation companies convened as part of the work on the Ukraine Plan for the implementation of the Ukraine Facility program. The Ministry of Energy of Ukraine oversees the group’s efforts, while Kyiv School of Economics provides analytical consulting support, and the Ministry of Economy of Ukraine coordinates the sectoral groups.

The creation of the sectoral working groups is one of the activities of the Good Governance Fund Project “Economic Hub: Sound PFM Policies and Vision for Growth,” which is supported by UK Aid from the UK Government. The project delivery partners are Abt Britain and Kyiv School of Economics.

Representatives of the Ministry of Economy of Ukraine, Ministry of Energy of Ukraine, Kyiv School of Economics, and KPMG took part in the meeting with representatives of the energy market.

“The development of the energy sector is one of the priority areas for restoring the Ukrainian economy. Demand for electricity in Ukraine over the next 10 years has a high potential for growth due to the growth of domestic consumption and the production of export-oriented products. The purpose of our working group is to understand the tasks and challenges for the development of the electric power industry in the post-war period,” said Maksym Fedoseienko, Head of Strategic Projects at KSE Institute, who moderated the discussion.

“We are developing a sectoral plan with an understanding of the prospects for Ukraine’s accession to the European Union. Our goal is to achieve zero carbon by 2050 through increasing green generation, developing nuclear energy, and implementing energy efficiency measures. European energy market integration is crucial for system stability and sustainability. Through substantive discussions with industry representatives, we aim to explore new development opportunities and find common solutions,” said Iaroslav Demchenkov, Deputy Minister of Energy of Ukraine for European Integration, in his opening speech.

Industry representatives discussed organizational issues of the group’s work, priorities for further market development, potential legislative changes envisaged by Ukraine’s integration into the EU, as well as ways to stimulate the development of renewable energy. In particular, proposals were made regarding the need for a detailed analysis of potential electricity markets, a realistic assessment of demand in certain regions and the development of conditions for localizing the production of power equipment in Ukraine by attracting additional investment.

The first stage of sectoral working group collaboration with businesses will continue until October 2023. During this period, proposals for the Ukraine Plan, essential for the implementation of the Ukraine Facility financial assistance program, will be formulated. The program will provide Ukraine with 50 billion euros from the European Commission during 2024-2027.