The state of the country's energy capacity: what businesses should expect

Despite all the government's efforts to reduce the electricity deficit, businesses should not expect the situation to improve.

This forecast was made by Andriy Shabelnikov, Chairman of the UNBA Committee on Investment and Privatization, commenting on the results of the discussion panel «The Future of Ukrainian Energy». The event, which took place in Kyiv recently, was organized by New Voice.

Speakers included National Bank Governor Andriy Pyshnyi, Ukrenergo CEO Volodymyr Kudrytskyi, Naftogaz CEO Oleksiy Chernyshov, Deputy Energy Minister Mykola Kolisnyk, DTEK CEO Dmytro Sakharuk, DiXi Group President Olena Pavlenko, NOVA Group co-founder Volodymyr Popereshniuk, NEQSOL Holding Ukraine Regional Director Volodymyr Lavrenchuk and others.

Currently, the forecasts for the near future remain pessimistic. As a result of Russian attacks, 80% of thermal power plants were destroyed and 40% of hydroelectric power plants were destroyed. 9 GW of capacity was lost, with an average consumption of 12 GW. According to IMF estimates, $1 billion in losses were incurred. And Ukraine is not able to provide itself with its own generation.

A. Shabelnikov is convinced that it is necessary to consider the possibility of connecting alternative energy sources. Moreover, the government offers certain programs to make it less costly for entrepreneurs. These include, for example, programs of preferential lending for energy infrastructure restoration projects.  On the other hand, the existing legislative initiatives do not help ease the situation for business. According to the Chairman of the UNBA Committee, an increase in the tax burden (military duty, increase in excise tax on fuel), and an increase in the number of inspections by regulatory authorities negatively affect the development of enterprises.