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8 out of 10 companies in Ukraine have felt the impact of power outages

Updated: Oct 25

Specifically, 87% of companies report that power supply disruptions have impacted their operations. As a result of outages, companies were forced to halt operations (67%), production costs increased (60%), and work schedules were adjusted (48%). Additionally, 36% reported a reduction in production or services, 11% experienced contract breaches, and 3% faced a complete halt in operations.



These are the findings of the European Business Association’s survey “Development of Energy Autonomy of Businesses.” On average, businesses rate their preparedness for the winter season at 3.84 out of 5. Meanwhile, they rated the government’s support in this context at 2 out of 5.



The most sought-after support measures from the government include fiscal incentives, such as the removal of customs duties, VAT, and lowering excise taxes, as well as improving legislation and policies to protect investments. Businesses need these measures even more than direct financial support.


Since 2022, 85% of businesses have invested in building energy independence, which is significantly more compared to 2021. Additionally, companies have increased their capital investments. For example, the number of companies that invested over $200,000 has doubled compared to 2021—from 15% to the current 30%.


As of today, 66% of the companies surveyed have their generation or alternative energy sources. Currently, autonomous energy sources cover up to half of the needs of 66% of companies, while for 34%, they cover more than half.


Specifically, 24% of companies have solar generation, 19% have energy storage, 17% have new networks and infrastructure, 11% have distributed gas generation, and 2% have biogas or biomethane plants.


At the same time, only a minority of companies are using imported electricity from the EU. Among survey respondents, 18% mentioned they are using this option, and another 5% plan to use it. Meanwhile, the majority, 60%, do not use and do not plan to use it. Additionally, 17% lack information about the possibility of commercial imports.


Only 17% have sought external financing to develop their energy infrastructure. Nearly half of the companies, 43%, stated that they did not have such a need. Meanwhile, 23% mentioned that financing is inaccessible (due to long procedures or high requirements), and 20% lack information about available programs.


Most companies do not foresee significant changes in their operations during the winter season. Thus, 82% plan to operate as usual. A reduction in operations is anticipated by 13% of respondents, while 20% expect losses. At the same time, some companies even expect increased activity (2%) and profitability (4%).


The main obstacles to implementing energy infrastructure recovery and development projects in Ukraine, according to respondents, are undoubtedly military actions and investment risks. At the same time, businesses report bureaucracy in the electricity market, lack of transparency in procedures, overregulation, lack of financing, corruption risks, and a lack of predictability.


According to survey participants, the energy situation could be improved by enhancing incentives for the development of renewable energy sources (RES) and distributed generation, protecting investments and investors, encouraging innovative solutions, and implementing market mechanisms.


For reference:


The survey “Development of Energy Autonomy of Businesses” is being conducted for the first time by the European Business Association in 2024. The survey was carried out from September 10 to October 7, with 83 CEOs and top managers from member companies participating. Survey partners include DTEK, Helios Strategia, and the Ukrainian Energy Exchange.

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