Implications of the Russian invasion and the ways toward revitalization
Unjustified Russian invasion of Ukraine had severe impact on the wholesale electricity market. Since the beginning of the war, there has been a 35% decline in electricity consumption and about 65% in payments. A number of Ukrainian enterprises have stopped functioning. More than 5 million Ukrainians have left their homes and fled abroad. Households were allowed to postpone payments for the utilities which has caused a working capital deficit for the generating enterprises. The energy infrastructure was heavily damaged.
It will take time for Ukraine to restore the energy sector. Accurate data about the actual damage can be obtained through technical audits. Rehabilitation of energy infrastructure will require enormous efforts and investments, yet, there is an opportunity to reshape Ukraine's energy sector in line with European standards.
This article addresses the wholesale electricity market since the beginning of the unprovoked war against Ukraine and elaborates on the possible options for its restoration.
