On May 2, we held a EUEA Members-only workshop in collaboration with the Green Deal Ukraїna (Georg Zachmann) and EUEA Member IMEPOWER (Yuri Kubrushko), digging deep into the promising landscape of investments in energy storage and flexible decentralized generation in Ukraine. Our focus was on uncovering viable business cases in the energy sector.
Key Insights: While the discussed projects hold promise, uncertainties loom large, especially when it comes to proving profitability to banks over the next 5 to 10 years. Factors like market volatility, currency risks, and war-related challenges pose significant hurdles.
Challenges Identified:
- Market Uncertainty: Risks of price fluctuations and regulatory changes.
- Currency and Reinvestment Risks: Currency volatility impacting investor returns.
- Bankability Challenges: Projects deemed non-bankable due to war-related risks and country categorization.
- Environmental and Infrastructure Challenges: Meeting environmental criteria and grid access hurdles.
- Potential Future Oversupply: Post-war stress on the system may lead to oversupply, posing investment risks.
Moving Forward:
- Advocating for governmental intervention to address regulatory challenges and create an attractive investment climate.
- At EUEA, we are committed to fostering meaningful dialogue and action to enhance investment opportunities in Ukraine’s energy sector. Join us in our mission to create a more vibrant and sustainable energy landscape in Ukraine!
