The last five years (current year is 2022) were very productive for the cooperation between the Norwegian and Ukrainian energy sectors. Norwegian companies were among the biggest investors in the Ukrainian renewable energy sector, reaching 20% of all FDIs to Ukraine in 2019 and 2020. Overall Norwegian companies invested in Ukraine around 10 billion NOK in solar and wind parks. In 2020 renewable energy in Ukraine almost reached the target of 11% share of total energy consumption according to the “Energy Strategy of Ukraine until 2035” which was expected renewable energy to account for 25% of Ukraine’s energy needs by 2035.
Last year, Ukraine started also with the help of several Norwegian service companies shooting seismic on the Black Sea. Ukraine remains very much dependent on the import of gas since 1/3 of all gas consumption in Ukraine is covered by import. This is something that Ukraine works hard on by enforcing energy saving measures, diversification of energy mix and increasing its own gas extraction. We assume that most likely Ukraine will continue the same path with somewhat decreased targets for renewables and reduced gas consumption.
Since Russian full-scale invasion of Ukraine this February the energy situation in Ukraine is changing rapidly. As of today approximately 600,000 consumers all over Ukraine do not have access to electricity and 200,000 consumers remain without gas supply due to the damaged infrastructure as a result of the Russian war against Ukraine. At the same time Ukraine managed in a very short term to get connected to the EU grid and ensure the stability of the interconnected network. In June this year pilot volume of electricity exports to the EU countries will be determined.
The whole picture of the damages to the Ukrainian energy system is difficult to estimate at this point. However, it is clear already now that Ukraine will go into a huge rebuilding process where new energy infrastructure and energy production facilities will be very much needed. The investment climate of Ukraine will remain insecure in the nearest future therefore NUCC is in dialogue with The Norwegian Ministry of Trade about the role of Eksfin (Export Finance Norway) regarding the risks involved in doing business during wartime and Norfund for setting Ukraine on their mandate for future investments together with private business actors and share the risks.
NUCC urges Norwegian companies that would like to do business in/with Ukraine in either sector to apply for membership in NUCC and to get access to the unique network with extensive knowledge and experience of doing business between our two countries.