Greater private sector participation key to unlocking Ukraine’s energy potential, says DTEK’s Advisory Council

DTEK’s Advisory Council, an independent group of international policymakers, economists, diplomats and energy experts, has published a new white paper with recommendations to strengthen Ukraine’s energy sector, attract more private sector participation and enhance Europe’s long-term energy security.

The report, “Ukraine's Energy Future”, sets out a roadmap for rebuilding and modernising Ukraine’s energy system during wartime, suggesting that reconstruction should not simply replace damaged infrastructure, but also support the development of a modern, competitive and decentralised energy system that supports economic growth, attracts investment and accelerates Ukraine’s integration with European energy markets.

The Advisory Council suggests several priority reforms that would accelerate investment and strengthen Ukraine’s energy sector, including:

1. Accelerating market liberalisation and deregulation
2. Expanding opportunities for private sector participation across the energy sector
3. Reducing market concentration and encouraging greater competition
4. Creating a more transparent, stable and predictable regulatory environment
5. Mobilising large-scale international investment to rebuild and modernise infrastructure

Together, these reforms would help create a more competitive investment environment while supporting Ukraine’s economic recovery and EU accession ambitions.

Anders Aslund, DTEK’s Advisory Council Member and lead author of the report, said:

“Ukraine does not lack resources. What it needs is a stable, predictable and market-oriented framework that gives investors confidence to commit capital over the long term. The opportunity is enormous, but unlocking it requires deeper deregulation, stronger corporate governance and greater private participation across the energy sector.”

A future energy partner for Europe

The report also explores Ukraine’s potential to become a major contributor to Europe’s energy security:

• The second-largest natural gas reserves in Europe and could increase production from around 20 bcm today to 60–70 bcm annually over the longer term.
• Potential to export up to 40 bcm of natural gas each year within the next decade.
• Potential to become Europe’s largest producer of onshore renewable energy.
• Europe’s largest underground gas storage facilities and growing battery capacity.

Building a new energy system

The war has exposed the weaknesses of Ukraine’s Soviet-era highly centralised energy system. Rather than simply rebuilding damaged infrastructure, Ukraine has the opportunity to create a more resilient and flexible model based on decentralised generation: wind, solar, battery storage, nuclear and hydropower and flexible gas-fired generation.

Geoffrey Pyatt, Chairman of DTEK’s Advisory Council said:

“Ukraine has built a new energy system that is more robust, more resilient, more decentralised, and fully integrated with Ukraine’s future membership in the European Union. What’s really going to move the needle, I am convinced, is the growth of private Ukrainian companies and the injection of capital from international private counterparts.”

The report suggests that while international financial support remains essential, long-term success will depend on creating the conditions for greater private investment. This requires continued market reforms, a more predictable regulatory environment and a stronger role for private capital alongside the public sector.