Electricity is an important part of energy in Ukraine. Most electricity generation is nuclear,[3] and the system is inflexible.[4] The bulk of Energoatom output is sold to the government's "guaranteed buyer" to keep prices more stable for domestic customers.[5][6][obsolete source] Until the 2010s all of Ukraine's nuclear fuel came from Russia, but now most does not.[7]
Electricity production fell from 296 TWh in 1991 to 171 TWh in 1999, then increased slowly to 195 TWh in 2007, before falling again.[13] In 2014, consumption was 134 TWh after transmission losses of 20 TWh, with peak demand at about 28 GWe. 8 TWh was exported to Europe. In 2015 electricity production fell to about 146 TWh largely due to a fall in anthracite coal supplies caused by the War in Donbass.[14][15]
In July 2019, a new wholesale energy market was launched, intended to bring real competition in the generation market and help future integration with Europe. The change was a prerequisite for receiving European Union assistance. It led to in increased price for industrial consumers of between 14% and 28% during July. The bulk of Energoatom output is sold to the government's "guaranteed buyer" to keep prices more stable for domestic customers.[5][6]
Since 2017 Ukraine sought to divest itself of dependency on the Unified Power System of Russia (UPS) and instead connect westwards to the synchronous grid of Continental Europe, thereby participating in European electricity markets.[16][17] Power lines coupling the country to the grids of neighbouring Poland, Romania, Slovakia and Hungary existed, but were de-energised.
A necessary prerequisite of Ukrainian integration was for the country to successfully demonstrate it was capable of running in a islanded manner, maintaining satisfactory control of its own frequency. To do that would require disconnection from the UPS grid, and a date of 24 February 2022 was set. This proved to be the date Russia invaded Ukraine, but the disconnection nonetheless proceeded to schedule. Ukraine placed an urgent request to synchronise with the European grid to ENTSO-E, the European collective of transmission system operators of which it was a member, and on 16 March 2022 the western circuits were energised, bringing both Ukraine and Moldova, which is coupled to the Ukrainian grid, into the European synchronised grid.[18][19][20] On 16 March 2022 a trial synchronisation started of the Ukraine and Moldova grid with the European grid.[18]
On 10 October 2022 Russia attacked the power grid throughout Ukraine, including in Kyiv, with a wave of 84 cruise missiles and 24 suicide drones.[27] Further waves struck Ukrainian infrastructure, killing and injuring many, and seriously affecting energy distribution across Ukraine and neighboring countries. By 19 November, nearly half of the country's power grid was out of commission, and 10 million Ukrainians were without electricity, according to Ukrainian President Volodymyr Zelenskyy.[28] By mid-December, Russia had fired more than 1,000 missiles and drones at Ukraine's energy grid.[29] Several waves targeted Kyiv, including one on 16 May 2023 in which Ukraine said it had intercepted six Kinzhal missiles.
Deliberately depriving Ukrainians of electricity and heating during the cold winter months was the biggest attack on a nation's health since World War II.[30] The attacks on power stations inflicted large economic and practical costs on Ukraine.[31] The UK Defense Ministry said the strikes were intended to demoralize the population and force the Ukrainian leadership to capitulate.[32] This is widely deemed to have failed.[33][34]
In 2021, Ukraine's nuclear reactors produced 81 TWh — over 55% of its total electricity generation,[42] and the second-highest share in the world, behind only France. The Zaporizhzhia Nuclear Power Plant, the largest nuclear power plant in Europe, is in Ukraine.
The 1986 Chernobyl disaster in northern Ukraine was the world's most severe nuclear accident to date.
About 2 GW can flow with neighbouring countries.[50] There is a 750 kV link with Hungary.[1]: 6 It has been suggested that the 220 kV link with Poland be improved and that interconnection with Slovakia be built sooner.[1]: 5 There are five 110 kV interconnections with Moldova, but they could be better used.[1]: 5
Due to the large share of nuclear balancing the grid is particularly difficult during peak demand, which is in the morning and evening due to retail demand.[51] Peak demand can reach 18 GW in winter, or 19 in cold winters.[51]DTEK is building more storage,[52] to improve ancillary services such as frequency control.[53] The IEA says that capacity limits on links from neighbouring countries should be increased,[54] and that more decentralised generation and batteries should be installed for energy security.[55] They recommend more off-grid and mini-grid. Both transmission and distribution have been attacked,[54] and shelters have been built to protect substations from attack.[56][57] More storage is being installed.[58]
"As the share of generation on the distribution network increases, distribution utilities will need to play a greater role in the planning, operation and supervision of the power system. This will require capacity building for utilities to be able to fulfil their evolving role in a more decentralised power system. In terms of planning, this would involve Ukrainian energy sector stakeholders shifting from a traditional supply-side approach to one that is more integrated and coordinated, involving actors from across the energy sector as well as across the electricity supply chain. Given the increasingly decentralised nature of the power system, it is essential that the Transmission System Operators (TSO) and the Distribution System Operators (DSOs) work in close collaboration, while policy makers and regulators need to take steps to clearly redefine the roles and responsibilities of DSOs towards a reliable and efficient power system."
Power system reforms
The IEA has published a roadmap for Ukraine's increased use of distributed energy resources (DERs) towards 2030 which says:[59]: 19
"Scaling up DERs requires robust financial incentives, while maintaining affordability and equity as core priorities. This involves two key elements: First, market design must enable broader participation of small-scale and distributed resources, such as batteries and small gas turbines, in wholesale electricity and ancillary services markets. Second, consumer tariffs should be structured to incentivise efficient electricity consumption, the deployment of behind-the-meter DERs like rooftop solar and batteries, and the operation of these resources in ways that deliver system-wide benefits."
Economics
In 2024 the price to householders was said to be about half the market price, and it has been suggested that to encourage energy saving and energy efficiency the subsidy should only apply to energy poor households and/or a certain minimum consumption.[60]
DTEK has started installing smart meters.[61] Central and city government is subsidizing rooftop solar installation.[51]
^Böttcher, Philipp C.; Gorjão, Leonardo Rydin; Beck, Christian; Jumar, Richard; Maass, Heiko; Hagenmeyer, Veit; Witthaut, Dirk; Schäfer, Benjamin (2023). "Initial analysis of the impact of the Ukrainian power grid synchronization with Continental Europe". Energy Advances. 2: 91–97. arXiv:2204.07508. doi:10.1039/D2YA00150K.