{"id":31158,"date":"2024-12-20T13:12:07","date_gmt":"2024-12-20T11:12:07","guid":{"rendered":"https:\/\/euea-energyagency.org\/?p=31158"},"modified":"2024-12-20T13:16:45","modified_gmt":"2024-12-20T11:16:45","slug":"balancing-better-and-faster-ukraine-s-reconstruction-strategy-unites-innovation-and-urgency-a-new-column-by-anastasia-vereshchynska-for-ceenergynews","status":"publish","type":"post","link":"https:\/\/euea-energyagency.org\/en\/news\/euea-in-the-press\/balancing-better-and-faster-ukraine-s-reconstruction-strategy-unites-innovation-and-urgency-a-new-column-by-anastasia-vereshchynska-for-ceenergynews\/","title":{"rendered":"&#8220;Balancing Better and Faster: Ukraine\u2019s Reconstruction Strategy Unites Innovation and Urgency&#8221; \u2014 a new column by Anastasia Vereshchynska for CEENERGYNEWS"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-size: 10pt;\"><span style=\"font-weight: 400;\">Building back better or faster: this was the central question of the 15th Annual European-Ukrainian Energy Day, held on 29 October in Vienna. Organised by the European-Ukrainian Energy Agency (EUEA), the Ukraine-based association for foreign investors in Ukrainian renewables and energy efficiency and the Austrian Federal Economic Chamber, the event brought together stakeholders to discuss Ukraine\u2019s reconstruction and energy transformation amidst ongoing challenges.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-size: 12pt;\"><b>Reconstruction efforts in Ukraine: urgency and opportunity<\/b><\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10pt;\">Contrary to common misconceptions, Ukraine\u2019s reconstruction efforts have been ongoing since the first day of Russia\u2019s full-scale invasion and are not postponed until the end of the war. The same applies to investments.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 10pt;\"><span style=\"font-weight: 400;\">In his opening speech, His Excellency Vasyl Khymynets, Ambassador of Ukraine to Austria, emphasised the urgency of reconstruction efforts, stating that there is no room to choose between building better or faster\u2014both must be achieved simultaneously. Addressing potential investors, he underscored that the key to achieving the highest return on investment lies in timing. \u201cThat moment is now,\u201d he said.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-size: 12pt;\"><b>The Role of private investments and the Ukraine facility<\/b><\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10pt;\">Private investments are pivotal to Ukraine\u2019s reconstruction. Charles de Crombrugghe from the European Commission introduced the Ukraine Facility, a unique instrument supporting both reconstruction and EU accession. Structured around three key pillars, the Facility provides:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 10pt;\">Pillar 1: Budget support for sustaining government operations through flexible EU funding;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 10pt;\">Pillar 2: The Ukraine Investment Framework, designed to attract private capital by leveraging de-risking mechanisms, even amidst the war;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 10pt;\">Pillar 3: Assistance programs and technical support for aligning Ukraine with EU standards.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><b>Lessons from reconstruction: insights from the EBRD<\/b><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10pt;\">The European Bank for Reconstruction and Development (EBRD) shared crucial lessons learned during the nearly three years of full-scale war. As an active lender in Ukraine, EBRD highlighted:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 10pt;\">Capacity Building: sustaining technical expertise in Ukrainian institutions is essential;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 10pt;\">Building Back Better: reconstruction presents an opportunity to modernise systems, prioritising distributed generation, renewables and storage over centralised, fossil-based systems;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 10pt;\">Financing Challenges: building back better requires incentivising policies to attract investments; financial support through grants and innovative instruments; mobilising large-scale private sector investments.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><b>Decentralisation as a cornerstone of energy resilience<\/b><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10pt;\">Ukraine\u2019s energy infrastructure has been under relentless attack for three consecutive years, highlighting the vulnerabilities of centralized systems. Decentralisation has become the cornerstone of reconstruction, enabling communities to develop resilient energy solutions. First Deputy Minister of Communities and Territories Vasyl Shkurakov emphasised that energy resilience is integral to community recovery. The Ministry is actively collaborating with international partners to establish decentralized energy and heat supply systems.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><b>Two key themes: reconstruction and renewables<\/b><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10pt;\">The event\u2019s discussions were divided into two main themes: reconstruction and energy efficincy and renewables, each addressing complex challenges and opportunities.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span style=\"font-size: 10pt;\"><span style=\"font-size: 12pt;\"><b>Reconstruction: practical solutions<\/b><\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Reconstruction efforts during wartime require adaptive strategies. Adjustments to procurement processes, such as lowering turnover requirements and implementing retention-based guarantees, have enabled projects to proceed despite financial challenges. Juliia Shevchuk from NEFCO presented the IDP Housing Program as a case study, showcasing how frequent monitoring and smaller payments facilitated construction under strict conditions.<\/span><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10pt;\">Capacity building was a recurring theme throughout the event. Developing technical expertise across Ukraine is essential to successfully implement innovative projects. This is where donor-funded technical support can make a significant impact. Additionally, given the wartime shortage of the male workforce due to military service, reconstruction efforts must adopt an inclusive approach, utilising all available human resources. This includes engaging women, veterans, youth and other underrepresented groups to build a robust foundation for Ukraine\u2019s recovery and future resilience.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><b>Renewables: trends and investments<\/b><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10pt;\">Ukraine has endured over 1,000 attacks on its energy infrastructure since 2022, with 70 per cent of non-nuclear generation either destroyed or significantly damaged. Despite these challenges, businesses are exploring solutions like behind-the-meter solar and gas-powered stations, as well as utility-scale renewables connected to the grid. While the first option is highly effective in the short term, the second approach is critical for ensuring the long-term stability and resilience of the energy grid.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10pt;\">Recent regulatory reforms, such as transitioning from feed-in tariffs to feed-in premiums and introducing guarantees of origin, have enabled developers to diversify revenue streams. However, project financing remains a key challenge. Investors must rely on corporate PPAs or assume limited merchant risk in a post-feed-in tariff era.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><b>Innovative solutions: minimum price guarantee fund<\/b><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10pt;\">EUEA and the Ukrainian Wind Energy Association have proposed a Minimum Price Guarantee Fund to address financing challenges. Supported by the Ukrainian Government, the European Commission and key financial institutions like the EBRD, the Fund would allocate donor resources to guarantee a minimum price for renewable projects for a period comparable to the terms of debt financing for the implementation of RES projects. This mechanism aims to enhance project bankability and unlock several gigawatts of much needed renewable energy capacity.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 10pt;\"><span style=\"font-weight: 400;\">The 15th European-Ukrainian Energy Day underscored that building back better and faster is not just a necessity but also an opportunity to reimagine Ukraine\u2019s energy future. By integrating energy efficiency, decentralisation and innovative financing mechanisms, Ukraine can transform its challenges into a resilient, sustainable energy system that stands as a model for the world.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\nSource: <\/span><a href=\"https:\/\/ceenergynews.com\/voices\/balancing-better-and-faster-ukraines-reconstruction-strategy-unites-innovation-and-urgency\/\"><span style=\"font-weight: 400;\">https:\/\/ceenergynews.com\/voices\/balancing-better-and-faster-ukraines-reconstruction-strategy-unites-innovation-and-urgency\/\u00a0<\/span><\/a><\/span><\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>Building back better or faster: this was the central question of the 15th Annual European-Ukrainian Energy Day, held on 29 [&hellip;]<\/p>\n","protected":false},"author":135,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[135],"tags":[],"class_list":["post-31158","post","type-post","status-publish","format-standard","hentry","category-euea-in-the-press"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>&quot;Balancing Better and Faster: Ukraine\u2019s Reconstruction Strategy Unites Innovation and Urgency&quot; 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