FORMATION OF UKRAINE’S ENERGY SYSTEM: FROM LOCAL NETWORKS TO ENTSO-E INTEGRATION

Keywords: electrification, economic security, OES of Ukraine, Ukrenergo, ENTSO-E, hybrid model

Abstract

The article addresses the crucial role of Ukraine’s energy system in ensuring economic and national security amid war, European integration, and ongoing geopolitical challenges, including Russia’s aggression and the inherited vulnerabilities of a centralized Soviet model. The study analyzes the historical evolution of Ukraine’s Unified Energy System (UES), from early urban grids of the late 19th century and the Soviet GOELRO electrification plan to postwar reconstruction and the establishment of a unified network in the 1970s. Special attention is given to key institutional milestones, such as the creation of Ukrenergo in 1992, desynchronization from Russia’s IPS/UPS system in 2022, and subsequent integration with ENTSO-E, which enhanced operational stability and energy independence. The research examines how wartime attacks exposed the systemic risks of over-centralization and supports the transition to a hybrid model combining centralized and distributed generation, including renewable sources. Using economic analysis, SWOT assessment, and scenario modeling, the study evaluates the resilience and transformation potential of the UES. Particular focus is placed on the challenges of balancing energy affordability, environmental sustainability, and security under conditions of limited investment resources. The conclusions emphasize the need for decentralization, smart grid implementation, energy storage systems, and renewable energy development to improve adaptability. The practical significance lies in recommendations for the post-war reconstruction of Ukraine’s energy system, supporting modernization and European integration, while balancing the security benefits of decentralization with the economic advantages of concentrated generation. In addition, the article highlights the importance of institutional capacity-building, cross-border synchronization protocols, and digital infrastructure upgrades as prerequisites for long-term resilience. The findings may be of interest to policymakers, energy experts, and international donors engaged in Ukraine’s recovery and strategic planning.

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Published
2025-10-30
How to Cite
Kurylenko, O. (2025). FORMATION OF UKRAINE’S ENERGY SYSTEM: FROM LOCAL NETWORKS TO ENTSO-E INTEGRATION. Sustainable Development of Economy, (5 (56), 263-268. https://doi.org/10.32782/2308-1988/2025-56-36