The Debt Knot of Ukraine’s Electricity Market: Challenges and the Position of the RES Sector

Ukraine’s electricity market continues to suffer from a critical debt crisis. The total amount of arrears across different segments has reached tens of billions of hryvnias, creating a closed loop where companies owe each other, and resolution is only possible at the state level.

Scale of the Problem

• Debt on the balancing market to NPC Ukrenergo — 39 billion UAH.

• Ukrenergo’s debt to market participants — 16 billion UAH, with the largest creditors being Ukrhydroenergo and DTEK companies.

• Water utilities have accumulated over 12.5 billion UAH in debts for electricity, mostly in frontline regions.

• The total debt to renewable energy producers has decreased to 22 billion UAH, though it still remains a heavy burden.

Position of the RES Sector

💬 Vladyslav Sokolovskyi, Chairman of the Board of the Solar Energy Association of Ukraine:
“The problem must be solved comprehensively: restructuring with a clear repayment schedule, transparent settlement mechanisms, and the involvement of international funds. It is especially important to address debts owed by critical infrastructure.”

💬 Andriy Konechenkov, Chairman of the Board of the Ukrainian Wind Energy Association:
“The debt to RES producers must be resolved in parallel with issues in the balancing market. Otherwise, the knot of debts cannot be untangled.”

Positive Developments

• Thanks to Law No. 4213-IX and an economically justified transmission tariff, the level of settlements with RES producers has improved: 99.2% in 2023, 89.2% in 2024, and over 90% already in 2025.

• Debt to “green” energy producers has been reduced from over 30 billion UAH to 22 billion UAH.

• Wind power generation has almost entirely left the “Guaranteed Buyer” balancing group and now operates under market conditions, increasing its resilience.

What’s Next?

Resolving the debt crisis requires:

• A roadmap from the Ministry of Energy with clear deadlines and funding sources.

• Comprehensive settlement across all market segments.

• Attracting international assistance and targeted special funds.

For Global 100% RE Ukraine, this discussion is an important signal: the renewable energy sector not only expects debt issues to be addressed but also proposes approaches for systemic development. A stable and transparent market will be the foundation for further growth of “green” energy in Ukraine, its integration into the European energy system, and strengthening the country’s energy resilience in the future.