The world is entering a new phase of energy competition. While some countries are boosting their resource base (USA, China, Canada, Brazil, Kazakhstan, Azerbaijan), Europe faces a growing deficit of domestic energy resources at a time when energy is becoming a tool of geopolitics, used by major players.
Ukraine has a unique chance to change its role – from vulnerable to system-forming.
- Ukraine is not a resource-poor country
It has significant gas reserves, can boost oil production and processing, and possesses some of the largest gas transmission and underground storage facilities in Europe. The problem is not in resources, but in their proper use.
- Resources are an energy weapon
Global crises have shown: the market does not guarantee supply at affordable prices. Import model means strategic vulnerability.
- Ukraine, as part of the EU UGS solution, with its transit and production potential can become a key element of Europe's energy security.
- Classic energy solutions
- Encouragement of gas production
- Resumption of offshore projects
- Integration of energy markets in the EU economic system
- Development of distributed generation, in particular, cogeneration
- New opportunities for energy saving
Biofuels:
Ukraine can become one of the European leaders in the production of bioethanol, biodiesel and biomethane. The potential of biomethane exceeds 15 BCM per year. The use and export of bio-LNG is not a fantasy, but a practical case.
Energy efficiency:
Saving is the fastest resource. Energy consumption per unit of output and household use can be reduced by up to 30%.
Electric vehicles:
The development of electric transport reduces dependence on petroleum product imports.
- Petroleum product market
Competition:
Prevention of cartel agreements and domination of a few actors on the energy market through transparency, strengthening antitrust policy, and creation of favourable conditions for small and medium businesses. The focus should be on the consumer, not just on budget revenues and interests of big chains.
Mini refineries:
Creation of small oil refineries increases the system flexibility.
- Tax and regulatory policy
Flexible regulation:
During crises, the state should quickly adapt its tax policy in the interests of consumers by reducing VAT or excise rates, rather than stimulating high prices through budget injections to maintain demand.
Abolition of advance payments:
This will increase the resilience of small and medium businesses, which act as an anchor, holding down prices and releasing working capital for procurement of resources and investments.
CONCLUSION:
The winner is not the one who focuses on low prices in the short term, but the one who has the mechanisms to implement a resilience strategy. Formation of competitive energy markets is a necessary but insufficient condition for economic sustainability in the absence of a long-term security policy.
