DTEK, Ukraine’s largest private energy company, is joining a UN-backed global coalition to revive the country’s war-shattered energy sector and help it become a green energy powerhouse.
The Ukraine Energy Initiative, which was created by the United Nations Global Compact, brings together partners from across the sector in a global coalition to co-ordinate efforts around the vision of a green, modern sector that also acts as a secure supplier of clean energy to Ukraine’s partners in Europe.
The group, which also counts Ukraine’s Naftogaz and Ukrenergo as founding members, aims to:
Connect international partners with companies in Ukraine seeking support, open the flow of global capital to fund recovery and transformation, help Ukrainian companies plan towards a net zero carbon future, incubate and accelerate Ukraine’s sustainable energy industry, promote industry best practice, and provide a place to consolidate world-leading expertise.
Restoring and revitalising Ukraine’s war-shattered energy infrastructure will require a major international effort. The World Bank estimates $5.7 billion will be required for short-term reconstruction and up to $47 billion for the complete restoration between now and 2033.
To get through the coming winter, Ukraine needs around 8.9 GW of generating capacity but has only 5.1 GW available currently. DTEK says that it needs $150 million to repair five thermal power plants (TPPs) and a further $27 million to restore its grids.
But beyond Ukraine’s immediate needs this winter, the Initiative is seen as an opportunity for partners to help the country build back a green and modern energy system that can become a source of clean energy for the rest of Europe.
In addition to membership of the Ukraine Energy Initiative, DTEK is a member of the new Ukraine Business Compact, a joint initiative from the British and Ukrainian governments to provide international businesses with a platform to show their support for Ukraine’s recovery.
• DTEK planning €2.4 billion upgrade for energy grid
DTEK announced on 22 June that it plans to transform its shattered electricity network in areas surrounding Kyiv by building a smart grid capable of withstanding military assault and able to accelerate Ukraine’s energy transition.
The Kyiv regional power grid, which excludes the capital itself, was extensively damaged by Russian attacks in spring 2022 and again after October 2022.
Although power was restored in just 45 days, the network remains in need of extensive repairs and major upgrades to raise it to modern European standards.
DTEK Grids, the grid operating business, is, therefore, seeking €2.4 billion of funding in a 10 year-project to transform the region’s power infrastructure. The plans, which need to be approved by Ukraine’s Ministry of Energy, envisage building a smart grid with 20 000 km of new overhead and underground cables, 250 substations, 6000 transformers and nearly a million smart meters.