Energy Strategy to 2030, approved by Decree No. 1071-p and to 2035 approved by Decree no. 605-p
In 2013, the Cabinet approved an updated version of the Energy Strategy. Following the adoption and official publication of the Energy Strategy to 2030 the Ministry of Energy and Coal Industry is developing an Action Plan to implement the Strategy. The Action Plan will cover detailed measures to fulfil Ukraine's commitments taken in the framework of the treaty establishing the Energy Community.
The Energy Strategy is designed to achieve the following results:
- Fully cover growing electricity demand by retrofitting thermal power plants; increasing the life cycle of existing nuclear power plants;
- Investing in upgrades and the expansion of the electricity grid; and after 2018 by commissioning new generation facilities and reducing specific fuel costs;
- Increasing annual gas production to 40-45bn cubic meters per year and covering 90% of gas demand with domestic gas;
- Fully covering coal demand by increasing cost effective thermal coal production to 75m tons per year and coking coal production to 40m tons per year;
- Significantly reducing public spending by terminating subsidies and increasing the efficiency of electricity sector companies;
- Implementing comprehensive energy efficiency programmes to reduce specific energy consumption by 30-35 per cent by 2030;
- attracting necessary investments (about USD 200bn) into the energy sector; this will require developing an industry reform program, creating competitive markets, increasing electricity prices in order to create a favourable investment climate for private investors, strengthening control over monopolies, and improving and stabilizing the regulatory framework. Investment needs in order to get to the 2030 forecast run upwards of EUR 46bn in the thermal power sector alone (where capacity remains on the current level).