Ukraine's new energy sector: signals we cannot ignore

Businesses are massively installing solar and gas generation, but most new facilities operate autonomously and do not sell their surplus to the grid. Although it seems illogical at first glance (electricity costs 7-9 UAH/kWh on the market, while the cost of owning a solar power plant is only 3-4 UAH), it is actually more profitable to consume your own electricity than to sell it to the grid.

The reason is the price difference: the day-ahead wholesale market, where surpluses are sold, often gives prices below cost (2-3 UAH/kWh) during peak solar generation hours. This is compounded by complicated connection procedures, regulatory uncertainty, and a lack of information. As a result, out of 900 MW of new SPPs installed in 2024, only 13 MW were connected under the self-production mechanism for sale to the grid.

In the Carpathians, wind farms are being built at the same time as protected areas are being destroyed, violating environmental laws. This is not a transition to green energy, it is a substitution of concepts. Because if alternative generation is based on impunity and carve-ups, then what is its alternative??