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Development of Microgrids Identified as Key to Strengthening Ukraine’s Energy Security - RST’s Report

07 October 2025, 11:10

In the context of ongoing military challenges and energy instability, Ukraine is turning to innovative solutions to enhance the resilience and independence of its energy system. One of the most promising directions is the development of microgrids, which can significantly improve the country’s energy security during wartime.

These conclusions are presented in the report “Analysis of the Implementation of Microgrids in Ukraine”, prepared by the Recovery and Reform Support Team (RST) at the Ministry of Energy of Ukraine.

According to the report, microgrids (localized energy systems capable of operating autonomously) hold substantial potential for promoting sustainable development, supporting the integration of renewable energy sources, and addressing the unique challenges facing Ukraine’s energy sector amid current geopolitical threats and infrastructure vulnerabilities.

The RST experts note that the introduction of microgrids could play a vital role in strengthening energy independence by reducing reliance on imported fossil fuels and ensuring localized power supply during outages. In addition, microgrids contribute to environmental sustainability by integrating renewable energy sources, aligning with Ukraine’s commitments to reduce greenhouse gas emissions and mitigate the impacts of climate change.

According to the report, the implementation of microgrids can bring tangible benefits to local communities, including job creation and greater energy equity.

The report outlines a series of recommendations aimed at creating a robust regulatory framework to accelerate the deployment of microgrids across Ukraine. Among them are the simplification of permitting procedures, the introduction of financial support mechanisms such as grants and preferential loans, and the alignment of national energy policy with European standards to enhance investment attractiveness and ensure long-term sustainability.

Experts also highlight the importance of active engagement of local communities and stakeholders in the planning and decision-making processes related to microgrid development. Strengthening public awareness and encouraging citizen participation in relevant projects are seen as key factors for successful implementation.

The report was prepared by experts of the Recovery and Reform Support Team (RST) at the Ministry of Energy of Ukraine with the support of the Ukraine Recovery and Reform Architecture (URA) programme, funded by the EBRD-Ukraine Stabilisation and Sustainable Growth Multi-Donor Account (MDA).