Integration of Ukraine’s Energy Sector into the EU: a joint study by DiXi Group and The Clingendael Institute
DiXi Group and The Clingendael Institute have published a joint research “Integration of Ukraine’s Energy Sector into the EU: Building Stronger Ties for the Future”, which analyses the transformation of the Ukrainian energy sector and the possibilities of its integration with the European energy market.
Ukraine’s energy system, which was heavily dependent on centralised fossil fuels before the war, is currently undergoing a global transformation. Massive attacks on energy infrastructure by Russia (about 60% of generating capacity was destroyed) forced the country to adapt quickly and focus on decentralisation of the energy system and green energy. The study points to Ukraine’s ambitious plans to rebuild its energy infrastructure. The government has set a target of reaching a 27% share of renewable energy by 2030, which requires active support from the EU, the US and other international partners.
In this context, Ukraine has begun to actively reconstruct its energy infrastructure to meet EU standards in order to integrate into the EU and to switch away from Russian fossil fuels.
A joint analytical paper by DiXi Group and the Clingendael Institute examines the efforts of the EU, the US and other partners to support the reconstruction of Ukraine’s energy system.
The analysts emphasise that Ukraine’s energy transition could become an important milestone on the country’s gradual integration into the EU. Ukraine can become a model for the rapid construction of decentralised power grids powered by renewable energy sources to ensure energy security in the face of potential threats.
To accelerate the restoration of Ukraine’s energy system in line with EU requirements, it is important not only to invest but also to create appropriate regulatory and institutional conditions.
Analysts pay special attention to the need for reforms that will meet European standards, as well as to the development of opportunities for exporting green electricity and hydrogen to Europe. A ‘green’ energy programme for Ukraine could facilitate reforms and bring the country closer to EU standards. In addition, in order to realise Ukraine’s ambitions to export green electricity and hydrogen to Europe, it is necessary to invest in the modernisation of gas infrastructure for hydrogen transportation.
In addition, the document states that the integration of Ukrainian energy market operators into European structures such as ENTSO-E and ACER will facilitate energy reforms and accelerate Ukraine’s accession to the EU, which is an important step towards energy independence and sustainable recovery.
