Ukraine is facing a major challenge in the energy sector: within the next decade, the country must gradually decommission all its nuclear reactors. This was reported by The Ukrainian Review with reference to Dovydas Vitkauskas, an expert on energy and corporate governance.
Ukraine will have to start decommissioning all its nuclear reactors within 10 years. The cost? Between 1 and 3 billion euros per reactor, – Vitkauskas noted.
Although nuclear energy currently accounts for 50% of electricity production in Ukraine, maintaining it remains expensive and not always an efficient option in the long term, he said.
Challenges for Nuclear Energy
Currently, three nuclear power plants with nine active reactors built during the Soviet era are operational in Ukraine. Their maintenance has become a significant financial burden for the state. The operator of nuclear power plants, Energoatom, has been running at a loss for many years, with its 2023 losses amounting to 250 million euros.
The problem lies in the absence of good corporate governance standards. Energoatom still lacks a functioning board of directors or oversight. Its annual accounts are questionable. Transparency is lacking in issues ranging from executive salaries to the selection of subcontractors. Even in cases where state-owned companies are better managed, political pressure is unfortunately hard to avoid, – the expert added.
Could Renewable Energy Be an Alternative?
Dovydas Vitkauskas emphasized that developing renewable energy is essential.
Ukraine needs more green energy, not because EU bureaucrats demand it, but because it is cheaper and more efficient, – he stated.
Currently, wind and solar energy account for only 10% of the country’s total energy balance. However, the development of this sector faces significant obstacles, including monopolization of access to power grids by private companies.
International Aid: Gifts or Investments?
According to Vitkauskas, Ukraine needs investments more than grants or loans.
An investment means a long-term commitment to the country and responsibility for financial and managerial decisions, – he emphasized.
So far, however, most international aid has been directed towards covering budget expenditures rather than stimulating the development of the energy sector.
Decentralized electricity supply and distributed generation will also be safer and less vulnerable to Russian missile attacks, – he concluded.
The expert also stressed that Ukraine must demonopolize access to the grid and ensure transparency in regulation.
