Oleksandr Sukhodolia: Ukrainian contribution to meet western democracies' energy security challenges

The socioeconomic development of any country depends upon the availability of energy. Simultaneously, external energy dependence is a country's vulnerability that could be utilized by an aggressive supplier of energy resources and technologies. Ukraine was aware of the threat of using energy as a weapon by Russia to subordinate Ukraine [i] and had been taking steps to eliminate its dependence long before the war started.

Ukraine stopped buying natural gas from Russia in 2015, diversified the supply of nuclear fuel for its nuclear power plants, ensured the integration of the Ukrainian gas transportation system into European networks (ENTSO-G), and, finally, a few hours before the invasion, disconnected the electric power system from the Russian one as part of the implementation plan of scheduled synchronization to European networks (ENTSO-E). Ukraine has made progress in bringing its energy legislation closer to EU legislation as well.

The full-scale Russian military invasion on February 24, 2022, confirmed the correctness of Ukraine's chosen strategic course for full Euro-Atlantic integration. At the same time, the resilience demonstrated by Ukraine during the war period [ii] highlights the country's potential as a contributor to European security. The Ukrainian energy industry is one of the examples of possible mutually beneficial cooperation that strengthens security in the region.

Since June 2022, the Ukrainian power system has been operating in synchronous mode with ENTSO-E which increases the stability, and security of electricity supply to consumers in different countries. Ukraine, prior to the Russian massive bombardment of an energy infrastructure, had supplied electricity to EU countries to moderate price volatility in their markets. At the time of the power shortages, as a result of the destruction of energy facilities, Ukraine had a technical possibility to import electricity from EU countries. Ukraine has huge potential for producing green energy and readily will resume the export of power to the EU the moment the war ends.

New opportunities for cooperation are opening up in the gas sector as well. The further increase of cross-border network capacity and the utilization of underground natural gas storage facilities available in Ukraine by gas suppliers to EU consumers makes it possible not only to implement EU plans to create a strategic gas reserve, but also to organize a Central and Eastern European gas hub. An opportunity opens up for the establishment of a platform to trade gas of different origin: the gas of Ukrainian origin (significant volumes of conventional natural gas, unconventional gas of dense rocks, the gas from the Black Sea shelf deposits, etc.), the gas resources of third countries (which can potentially be supplied through territory of Ukraine from post-war Russia and countries of Central Asia), and green energy resources (biogas, hydrogen).

The potential for the development of hydrogen energy is quite high in Ukraine. The preparation of the Strategy for the Development of Hydrogen Energy in Ukraine and the development of a new industry is underway. Ukrainian companies have already joined the "H2EU+Store" initiative and will now produce "green hydrogen", which can be stored in Ukrainian gas storage facilities and exported to EU countries. Ukraine is actively preparing a regulatory and legislative framework to ensure compatibility with EU requirements for biomethane production and its export to the EU. Potentially, Ukraine can produce up to 10 bcm of biomethane per year.

Ukraine is becoming important for regional nuclear energy security. Ukraine is the first country in the world, to have succeeded in substituting Russian nuclear fuel for nuclear power plants of soviet technologies. Today, seven power units of Ukraine's nuclear power plants are fully operating on fuel produced by Westinghouse Electric Sweden AB. From 2024, all 15 power units of Ukrainian nuclear power plants will be supplied with this fuel. Ukraine can help the countries of Central and Eastern Europe to diversify nuclear fuel supply as well. Today, there are 17 Soviet-type nuclear power plants operating in Europe, which until now had no alternative to Russian fuel. Ukraine, in cooperation with Westinghouse, is already proceeding with fuel assemblies for such reactors (VVER-1000 and VVER-440).

In fact, Ukraine can contribute to the implementation of the efforts of the Western democracies to reduce dependence on Russian nuclear technologies (the G7 countries agreement [iii]) globally. Ukraine possesses a significant resource potential (uranium deposits), a significant market volume (reduction of market entry costs), a technological base, and qualified personnel (developed nuclear industrial complex and system of personnel training). Ukraine has already concluded a number of agreements with international partners, allowing the establishment of a new chain of nuclear fuel supply from uranium production to its conversion, enrichment, and production of nuclear fuel assemblies. Ukraine can also participate in accelerating the development and practical application of small modular nuclear reactor technologies.

The lessons learned from the Ukrainian experience of ensuring the stability of the energy supply in the conditions of war could benefit developed democratic countries a lot. Ukraine stated the priority of a transition to fundamentally different approaches to energy systems development. The development of a decentralized energy system by increasing the number of power generation facilities while simultaneously reducing spatial disparities in their localization will contribute to increasing the overall reliability of the energy systems and reducing their vulnerability to kinetic and cybernetic attacks. The development of energy supply systems according to the above priorities creates a new huge market for investors because it will require the deep reconstruction of the significantly destroyed energy systems throughout the territory of Ukraine.

The challenges facing Ukraine as well as defined priorities justify   Ukrainian positioning within a future energy security framework of European nations as:
- an electricity supplier, - thanks to the expansion of generating capacities on a new technological base, the developed energy network of Ukraine will contribute to the operational safety and stability of the networks of neighboring EU countries;
- a gas hub, - due to the development of the trading platform and infrastructure based on underground gas storages and an extensive gas transportation system to provide additional options to gas supply to EU countries (from Ukraine and third countries);
- a manufacturer of equipment for renewable energy, - thanks to the rapidly growing demand and a significant market for the development of renewable energy technologies in Ukraine (bioenergy, solar and wind energy, hydrogen, etc.);
- a supplier of green energy, - in particular, thanks to the export of green electricity, hydrogen, and biofuels;
- an element of the nuclear fuel and services supply chain, - thanks to the existence of a resource and technological base, the separate elements of the nuclear fuel production cycle, the significant internal market, and the available scientific and technological expertise of Ukraine;
- an example of energy systems transformation, - due to learning Ukrainian experience in the development of decentralized energy systems for communities and protection of the energy systems from physical and cyber threats.

These prospective areas of cooperation development, as well as Ukraine's experience in responding to threats caused by Russia's armed aggression, will significantly increase the security and resiliency of democratic countries.