Energy market in Ukraine

The energy sector accounted for approximately 4.7% of Ukraine’s GDP in 2024 (USD 9.3 billion / CAD 12.23 billion) and plays a critical role in the country’s stability and recovery.

Before the war, Ukraine relied on imports of natural gas and oil products, while exporting oil processed domestically. The country was largely self-sufficient in power generation due to its nuclear power plants (NPPs), thermal power plants (TPPs), and hydropower facilities.

Estimated market size: USD 20 to 25 billion (CAD 27 to 34 billion)

• Approximately 28% of generation capacity was occupied or damaged
• Around 50% of thermal power capacity was destroyed
• Renewable energy capacity declined significantly

Despite this, Ukraine maintained system stability and flexibility, avoiding a full grid collapse.

In early 2022, Ukraine experienced a power surplus. However, following infrastructure damage:

• Ukraine began importing electricity from EU countries
• Power deficits emerged and persist in certain regions

Industrial production dropped significantly in 2022 but has been gradually recovering, reaching approximately 70% of 2021 levels by 2023.

Energy supply disruptions and power rationing remain a concern for businesses.

Ukraine’s energy sector presents strong opportunities for investment, particularly in rebuilding and modernization.

As of December 2025:

• Estimated damages: USD 24.85 billion (CAD 33.9 billion)
• Required recovery and reconstruction: USD 69.6 billion (CAD 142.1 billion)

Key investment areas include:

• Reconstruction of thermal power plants (where feasible)
• Expansion of renewable energy (solar, wind) 
• Battery energy storage systems
• Decentralized energy solutions for businesses and households
• Energy efficiency improvements

The government is supporting investment through:

• Renewable energy auctions (USD 1.1 billion planned in 2025)
• State support programs covering up to 30% of project costs

Ukraine is also shifting toward a more decentralized and EU-integrated energy system.