Ukraine’s EU power plan impeded by subsidy backsliding

Kiev wants to modernise and decarbonise its power sector—but is scaring investors away by retroactively cutting subsidies for renewables

Ukrainian prime minister Denish Shmyhal recently set out plans for his country to join the EU’s Green Deal and synchronise its power system with the European grid by 2023. This seems easier said than done. Ukraine is primarily dependent on nuclear for power generation, accounting for c.50pc, but it is also reliant on coal for c.30pc, according to BP data. Renewables account for around 9pc and, excluding hydroelectricity, this falls to less than 5pc. Solar PV has been growing steadily in recent years, rising from negligible levels only a few years ago, and is fast approaching 6GW of installed capacity. Ukraine is targeting 25pc of renewables in its generation mix by 2035. Government subsidies