The stability in the energy sector is the prerequisite for Ukraine’s economic development, the uninterrupted operation of all businesses, and the decent quality of life

That is why the European Business Association has developed the EBA Energy Outlook White Paper 2021/22 – the first document that embraces consensus proposals from the business for solving problems in electricity &renewables, gas production, and gas distribution industries.

The White Paper also contains a balanced vision of market participants regarding the future of the energy sector, key problems, and necessary reforms. After all, the whole country needs to prevent a crisis in the industry, especially throughout the heating season. Thus, the presentation of this fundamental document took place on November 29

A brief overview of the White Paper was given by Karl Sturen and Volodymyr Kushil who are Co-Chairs of the EBA Energy Committee.

The White Paper can be found at the link

After the White Paper presentation, the participants proceeded to two-panel discussions dedicated to the current energy situation in Ukraine.

The speakers of the first panel were Olena Osmolovska, Director at Reform Support Team at Ministry of Energy of Ukraine, Andriy Gerus, Chairman of the Verkhovna Rada Committee on Energy, Housing and Utilities, Olga Babiy, member of the National Energy and Utilities Regulatory Commission, Valerii Bezus, Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine, Maksym Yurkov, member of the Supervisory Board of PrJSC NPC Ukrenergo, Dmytro Saharuk, Executive Director of DTEK, Stanislav Kazda, RGC Development Strategy Director.

As a result of the discussion, the participants agreed that it is strategically important to continue the synchronization of Ukraine’s energy system with the European energy system ENTSO-E, as well as to continue the integration of gas markets. In this context, the state, regulators, and energy companies pursue the same goals. Therefore, to achieve the result there must be a constant dialogue between the parties. Thus, the key challenge now is to pass the heating season without disruptions. Whether the country will be provided with enough heat, light, and gas this winter depends on the actions of each participant in the energy system. For their part, the participants agreed that from a technical point of view, Ukraine will pass this period stably, but from a financial point of view, significant costs would be expected. We also talked about decarbonizing the industry, creating conditions for transparent competition, and improving the country’s energy security. Regarding the gas, the focus was on the situation with the gas distribution sector, namely, with economically unprofitable tariffs for natural gas distribution and chronic underfunding. Therefore, Ukraine as a European country must implement the European principles of equality of regulation, ensuring the break-even point for the industry and establishing a level playing field.

The second panel featured Michael Grossman, Managing partner, Tumbleweed Partners, Kyrylo Kryvolap, Executive Director of the Center for Economic Recovery, Volodymyr Omelchenko, Director, Energy Programmes, the Razumkov Center, Andrian Prokip, Energy Programme Expert of the Ukrainian Institute of the Future, Leonid Unihovsky, General Director, «Naftogazbudinformatyka» Ltd, and Liudmyla Buimister, Chair of the Subcommittee on Competition and Equal Business Conduct of the Verkhovna Rada Committee on Economic Development.

The focus of the discussion, again, was the issue of Ukraine’s energy security. In particular, the impact of Nord Stream-2 on the gas market and the need to prepare for the consequences upon its launch. The participants also discussed the energy crisis and the need to increase own production, attract investment in energy modernization, financial obligations of the state, etc.

The European Business Association would like to thank all the participants who joined the discussion. And we very much hope for the continuation of the respectful dialogue of the parties on topical energy issues!

Watch the EBA White Paper Presentation here

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