KPMG Business Navigators - Energie

The energy sector plays a key role in the Ukrainian economy, particularly the expansion of renewable energies with a focus on wind power. Ukraine also has one of the best-developed gas networks in the world. The energy sector is currently recovering and demonstrating its largely untapped potential. Also worth mentioning are the iron ore reserves, which are comparable to those of the USA and more than 6.5 times higher than in the EU. As the former main energy supplier of the Soviet Union, Ukraine also has an efficient electricity grid that still has redundant capacities despite partial war damage.

One of Ukraine's main advantages is its diverse energy mix. In addition to the expansion of wind power, particularly in the south of the country, there are large capacities for solar energy, biomass and hydropower. In the long term, these renewable energy sources could help to meet the growing demand for energy in Germany and the EU and reduce dependence on fossil fuels. In 2023, the Ukrainian government presented its energy strategy up to 2050, which envisages extensive investment opportunities in new energy capacities totalling up to USD 383 billion. The strategy aims to modernise the country's energy infrastructure and significantly expand the production of renewable energies.

In addition, in 2025, the European Bank for Reconstruction and Development (EBRD) estimated that it would provide around EUR 1 billion to support Ukraine's energy sector, which was severely damaged by the war. This amount reflects short-term recovery measures and is expected to be adjusted depending on the course and impact of the war

The production of green hydrogen also plays a central role. Ukraine offers ideal conditions for the cost-effective production of hydrogen based on renewable energies. Exporting this energy source could help Germany to drive forward its industrial decarbonisation and reduce CO₂ emissions by 80 to 95 per cent by 2050. This offers opportunities for German companies in particular to participate in the development of production facilities and transport infrastructures.

The modernisation of the Ukrainian electricity grid creates further investment opportunities. Since Ukraine joined the European Network of Transmission System Operators for Electricity (ENTSO-E) in 2022, the national electricity grid has been connected to the European interconnected grid. The throughput capacity is set to increase from the current 2.48 GWh to 6 GWh by 2032 in order to meet the growing energy demand in Europe. The expansion of the grid infrastructure and the introduction of new technologies to stabilise the grid open up a wide range of opportunities for cooperation for German companies.

Ukraine's geological location offers an additional locational advantage. In addition to the efficient gas network, the country has the third largest natural gas reserves in Europe. These resources could make a significant contribution to European energy security in the future, particularly by developing alternative gas sources in order to further reduce dependence on Russia.

The Ukrainian government is providing comprehensive support to foreign investors - through tax breaks, subsidy programmes and simplified financing models in cooperation with international institutions such as the World Bank and the EU. Comprehensive economic reforms are also expected after the war, which should accelerate reconstruction and sustainably improve the investment environment. Ukraine's possible accession to the EU would also significantly expand trade and investment opportunities for German companies.

With renewable energies, green hydrogen, an efficient power grid and strategically important raw material deposits, Ukraine could play a central role in the European energy supply of the future. German companies have the chance to actively shape this development and benefit from the diverse investment opportunities.