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Sustainable aid for Ukraine’s energy supply

Through various partnerships and projects, Germany is supporting the reconstruction of the Ukrainian energy infrastructure at the humanitarian, technical and financial levels. A focus is on the sustainable transformation of the country’s energy sector.

Every year, more than 13,000 patients receive treatment in the oncology department of the central hospital in Sheptytsky – the only specialised clinic serving the approx. 500,000 people living in Oblast Lwiw and Oblast Volhynia. The electricity supply has been critically endangered ever since the start of Russia’s war of aggression. Ukraine has lost some 50% of its generation capacity, resulting in massive blackouts and reduced energy security.

Thanks to the Renewables for Resilient Ukraine pilot project (R2U), it has been possible to install a hybrid solar power plant on the roof of the hospital. The installed battery stores the electricity generated by the solar cells and supplies the hospital as needed. R2U is financed through the International Climate Initiative of the Federal Ministry for Economic Affairs and Climate Action and implemented by GIZ in cooperation with Ukrainian NGOs.

^{Reconstruction of critical energy infrastructure using environmentally-friendly technologies}

Prior to the installation of the hybrid solar power plant, the oncology department was entirely dependent on the grid and a back-up power supply. Now, the hybrid PV installation allows for a secure and seamless supply, protecting expensive medical equipment from damage caused by switchovers and ensuring that the clinic is operational at all times.

The hospital’s supply with electricity from renewables is an example for the use of environmentally-friendly technologies in the reconstruction of Ukraine’s critical infrastructure. The German-Ukrainian Energy Partnership also supports the modernisation of the power transmission grids – a development that will stabilise the connection with the European grid and foster the integration of renewables.

^{Renewable energy projects for greater resilience of the local economy}

Germany’s support has positive effects at several different levels. First, it helps secure the energy supply for critical municipal infrastructure and reduces the country’s dependency on fossil fuels. Second, Germany’s support paves the way for a sustainable transformation of the Ukrainian energy sector, demonstrating the benefits of renewable energy at a local level.

Initial experience with the project shows that renewables are now better accepted by the population and the local authorities. The mayor of Dubno said at the inauguration of a hybrid PV installation, he personally had initially not believed in green technologies. He had changed his view when he realised that the generator for the ICU was now using less fuel. Small businesses, he said, were also increasingly relying on solar PV systems to avoid being affected by power cutoffs. The mayor is planning more projects and is already in contact with investors about these.

This example shows that renewable energy projects can make a major contribution to the resilience of the local economy. This is particularly important in regions that are structurally weak – Volhynia and norther Lwiw are both coal-mining regions.

^{International willingness to support Ukraine remains at a high level}

International support for the reconstruction of the Ukrainian energy infrastructure continues to be strong. Germany, whose support is second only to that of the U.S., contributed €375 million to the Ukraine Energy Support Fund up until the end of 2024. This fund, which has been receiving payments from many other donors since 2022, has a total of €895 million in funding provided or approved (figure as of 29 November 2024).

The R2U pilot project, which is about installing renewable energy demonstration installations for critical infrastructure in selected municipalities, has allowed these municipalities to make significant progress on local energy security and the energy transition. The focus is on projects designed to boost energy resilience for municipal services such as schools, hospitals and the water supply, particularly in regions affected by conflict, displacement and dependency on coal.

^{Projects form an important basis for the German-Ukrainian Energy Partnership}

So far, 16 distributed renewable energy systems have been installed or taken up operations, with cost savings allowing for 5 additional projects. By the end of December 2024, a total of 20 installations (19 solar installations, 1 heat pump) had started to supply energy for public-sector infrastructure. In a next step, the International Climate Initiative provided €20 million to the European Investment Bank, so as to further expand this approach and finance additional projects.

The lessons learned from such projects form an important basis for the German-Ukrainian Energy Partnership, which was founded in 2020. Its purpose is to focus political dialogue on the modernisation and decentralisation of the Ukrainian energy sector, based on renewables, storage and smart grids. The Energy Partnership subsumes the various activities the Federal Government has launched in support of this.

^{Donations in kind for the Ukrainian energy sector}

A donation campaign organised by GIZ supports the reconstruction of Ukraine’s energy infrastructure. It involves donations of spare parts, many of them specialised energy goods that are currently not available on the market, to Ukrainian energy suppliers.

It is estimated that, so far, that these donations have made it possible to restore the electricity supply of more than 1.1 million people in Ukraine (last updated: November 2024). Some 90 companies (in German only) have so far participated in the donation campaign. The need for donations in kind remains high, which is why future donations of new and used energy goods provided by German companies are highly welcome and much needed.