The Power to Rebuild: State Support as a Driver of Ukraine's Green Energy Transition

Abstract

Although the focus is currently still rather on emergency actions, Ukraine’s energy transition has become a central pillar of its post-war recovery and European integration. This requires the mobilisation of substantial public and donor financing aligned with climate objectives and energy resilience goals as well as EU State aid rules.

Prior to 2022, public support for renewable energy, energy efficiency and environmental objectives was mainly implemented through sectoral laws and regulatory mechanisms, including feed-in tariffs, public service obligations and fiscal incentives. However, these instruments were not systematically notified or reflected in the State aid register, limiting transparency and the ability to assess their scale, impact, and compliance with the State rules.

Since the full-scale invasion, public support has shifted toward budgetary programmes, concessional financing and reconstruction-driven measures targeting energy resilience, infrastructure restoration and decarbonisation. This has increased both the volume and complexity of public support.

The post-war reconstruction offers a unique opportunity to modernise the energy system, increase strategic autonomy, and accelerate the green transition. As Ukraine advances towards EU integration, ensuring that public support measures are transparent and compatible with EU State aid rules becomes essential.