Action Plan for Ukraine’s Energy System

by Center for Liberal Modernity (LibMod)

The Ukrainian energy system is on the verge of collapse. Targeted Russian attacks against the energy system have destroyed large parts of the electricity and heat generation capacities in recent weeks and months. In consequence, Ukraine suffers an ongoing severe energy shortage. Power outages are a daily occurrence, which makes life difficult for the population, but also poses major challenges for the economy – and therefore for the defence capabilities.

This policy paper outlines concrete proposals on how the current situation can be improved for the winter of 2024/25 and the coming years.

These include among others an increase in electricity import capacities, a rapid expansion of decentralized energy generation, a reform of energy subsidies, measures for the rapid development of new electricity and heating capacities, but also a reform of the governance and controlling of state energy companies.

The outlined reform proposals are relevant not only for Ukrainian decision-makers who are involved in the energy sector, but also for international experts and sponsors who support reform-oriented policies in Ukraine.