Russia’s invasion has already caused billions in damage to Ukrainian infrastructure and property. Just last week, International Atomic Energy Agency head Rafael Grossi flew to Russia to speak with President Vladimir Putin about fears his occupation of Ukraine’s Zaporizhzhia nuclear power plant, Europe’s largest, could lead to an environmental and human catastrophe.
And yet, compared to elsewhere, the offer of faster permitting, lower costs and the chance to shape Ukraine’s emerging energy market helps compensate for the uncertainty. Delays in getting new energy projects going have long been a bugbear for companies in Western Europe. Kudrytskyi said a new wind or solar project could take just weeks to get approval, whereas in Italy it routinely takes nine years.
As a result, he said, Ukraine is speeding through construction projects.
“For example, we are now building a 100-kilometer high voltage line that will be ready in one or two years,” Kudrytskyi said. “In Eastern Europe, a project like that often takes five or 10 years. In Western Europe, it may never even happen.”
Combine that with higher margins on sales and lower costs on the ground, and companies have fertile ground in Ukraine. “The Ukrainian power sector offers very, very profitable options,” Kudrytskyi argued.
He noted that Ukraine pays twice as much as many other European countries for services that help link up the grid, “so your revenues as an investor will be twice as much.” Meanwhile, Kudrytskyi added, “your costs, in terms of labor and land, could be five, seven, 10 times lower.”
