STRATEGIC DIRECTIONS FOR ATTRACTING INTERNATIONAL INVESTMENT INTO UKRAINE’S RENEWABLE ENERGY SECTOR UNDER CONDITIONS OF POST-WAR RECOVERY
Abstract
Introduction. The conditions of Ukraine’s post-war economic recovery lead to an increased role of international investment in the development of renewable energy as a key determinant of energy security, decarbonisation, and integration into the European energy space. The destruction of energy infrastructure, heightened security risks, and the limited availability of domestic financial resources intensify the need to develop new strategic approaches to attracting foreign capital to the renewable energy sector.
Methods. The methodological framework of the study is based on a combination of general scientific methods of analysis and synthesis with instruments of strategic analysis. PEST analysis is employed to assess the external investment environment, while SWOT analysis is used to identify strengths and weaknesses, opportunities and threats to the development of renewable energy, taking into account military and institutional factors.
Results. The study systematises the key factors influencing international investment in Ukraine’s renewable energy sector and identifies the main barriers and drivers of foreign capital inflows under conditions of post-war transformation. Strategic directions of state policy aimed at creating a predictable, risk-oriented investment environment and stimulating the development of renewable energy are substantiated.
Discussion. Prospects for further research are associated with the development of quantitative models for assessing investment risks in renewable energy, the analysis of the effectiveness of war risk insurance mechanisms, and the examination of blended finance instruments and their adaptation to the conditions of post-war recovery.
Keywords
Full Text:
>PDF
References
Dunning, J. H. (1988). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1), 1–31. https://doi.org/10.1057/palgrave.jibs.8490372
Jiang, W., Jiang, K., Zhang, Z., Martek, I., Ruan, C., & Lu, G. (2025). The impact mechanism of political risk on foreign renewable energy investment in developing countries: The mediating role of vulnerability. Energy Policy, 198, Article 114467. https://doi.org/10.1016/j.enpol.2024.114467
Kılınç-Ata, N. (2016). The evaluation of renewable energy policies across EU countries and US states: An econometric approach. Energy for Sustainable Development, 31, 83–90. https://doi.org/10.1016/j.esd.2015.12.006
International Renewable Energy Agency (IRENA) & Climate Policy Initiative. (2023). Global landscape of renewable energy finance 2023. Abu Dhabi: IRENA. https://www.irena.org/Publications/2023/Feb/Global-landscape-of-renewable-energy-finance-2023
World Bank. (2024). New World Bank support package aims to strengthen Ukraine's economy and improve financial stability. https://www.worldbank.org/en/news/press-release/2024/12/17/new-world-bank-support-package-aims-to-strengthen-ukraine-economy-and-improve-financial-stability
International Energy Agency. (2023). Scaling up private finance for clean energy in emerging and developing economies. Paris: IEA. https://www.iea.org/reports/scaling-up-private-finance-for-clean-energy-in-emerging-and-developing-economies
Kılınç-Ata, N., & Dolmatov, I. A. (2023). Which factors influence the decisions of renewable energy investors? Empirical evidence from OECD and BRICS countries. Environmental Science and Pollution Research, 30, 1720–1736. https://doi.org/10.1007/s11356-022-22274-8
Aydos, M., Toledano, P., Brauch, M. D., Mehranvar, L., Iliopoulos, T., & Sasmal, S. (2022). Scaling investment in renewable energy generation to achieve Sustainable Development Goals 7 and 13 and the Paris Agreement: Roadblocks and drivers. New York: Columbia Center on Sustainable Investment. https://ccsi.columbia.edu/sites/ccsi.columbia.edu/files/content/docs/publications/ccsi-renewable-energy-investment-roadblocks-drivers.pdf
Knutsson, P., & Ibarlucea Flores, P. (2022). Trends, investor types and drivers of renewable energy FDI (OECD Working Papers on International Investment No. 2022/02). Paris: OECD Publishing. https://doi.org/10.1787/4390289d-en
World Bank, & Energy Charter Secretariat. (2023). Enabling foreign direct investment in the renewable energy sector: Reducing regulatory risks and preventing investor-state conflicts. Washington, DC: World Bank. https://documents1.worldbank.org/curated/en/099701404112329298/pdf/IDU0c75e7e5c03eef04e9808a010465c21da0408.pdf
Odeyemi, N. (2024). IFC calls for major increase in renewable energy investments to meet climate goals. The Electricity Hub. https://theelectricityhub.com/according-to-the-ifc-investments-in-renewable-energy-generation-need-to-increase-significantly-to-meet-global-climate-goals/
Savchenko, M. V., & Romanets, T. P. (2024). Investments in renewable energy: Global trends and modern instruments. Business Inform, (3), 23–30. https://doi.org/10.32983/2222-4459-2024-3-23-30
Oleksiv, I. B., & Dribniuk, A. M. (2023). Analysis of modern investment instruments in renewable energy in Ukraine. Management and Entrepreneurship in Ukraine: Stages of Formation and Development Problems, 2(9), 315–325. https://science.lpnu.ua/sites/default/files/journal-paper/2023/dec/32735/menedzhment223maket-315-325.pdf
UkraineInvest. (2022). Global trends in investment in renewable energy. https://ukraineinvest.gov.ua/news/03-06-22/
Boufaddi, E. (2024, November 22). European investment in Morocco: Renewable energy at the expense of human rights? Global Voices. https://uk.globalvoices.org/2024/11/22/10491/
Bhalla, K. (2024). Clean energy soars but IEA warns of “fault line” in World Energy Investment 2024. IIGCC. https://www.iigcc.org/insights/clean-energy-iea-warns-of-faultline-world-energy-investment-2024
UkraineInvest. (n.d.). Renewable energy. https://ukraineinvest.gov.ua/en/industries/energy/renewable-energy/
Wikipedia. (n.d.). Renewable energy in Ukraine. https://en.wikipedia.org/wiki/ Renewable_energy_in_Ukraine
Hnatenko, I., Bebko, S., Yevseitseva, O., Shykovets, K., Kvita, H., & Zos-Kior, M. (2024). Analysis of Ukraine’s renewable energy market in the context of financial and economic changes. Financial and Credit Activity: Problems of Theory and Practice, 5(58), 446–453. https://doi.org/10.55643/fcaptp.5.58.2024.4576
Interfax. (2024). Ukraine commissioned 662 MW of new renewable energy capacity in 2022–2023. https://interfax.com/newsroom/top-stories/98847/
International Energy Agency. (n.d.). Ukraine’s energy system under attack. https://www.iea.org/reports/ukraines-energy-security-and-the-coming-winter/ukraines-energy-system-under-attack
Lloyds Bank. (n.d.). Foreign direct investment (FDI) in Ukraine. Lloyds Bank International Trade Portal. https://www.lloydsbanktrade.com/en/market-potential/ukraine/investment
Irwin-Hunt, A. (2023). A year of the Ukraine war in five charts. fDi Intelligence. https://www.fdiintelligence.com/content/a3f5fba0-a620-5303-bc07-b47cc78d38c1
Melnyk, O., & Zymenko, K. (2024). Investing in renewable energy in Ukraine: How corporate PPAs ensure stability and profit. Lexology. https://www.lexology.com/library/detail.aspx?g=8abd50f8-b810-44cb-8d96-6b6dc1d9d415
Reuters. (2024, March 28). Ukraine’s economy grew 5.3% in 2023, statistics service says. https://www.reuters.com/markets/europe/ukraines-economy-grew-53-2023-statistics-service-says-2024-03-28/
REN21. (2024). Renewables 2024 global status report: Investment and finance. https://www.ren21.net/gsr-2024/modules/energy_supply/01_global_trends/03_investment_and_finance
U.S. Department of Energy. (2024). Clean energy roadmap: From reconstruction to decarbonization in Ukraine. https://www.energy.gov/sites/default/files/2024-10/NZW06%20Clean%20Energy%20Roadmap%20From%20Reconstruction%20to%20Decarbonization%20In%20Ukraine.pdf
World Bank. (n.d.). Ukraine overview. https://www.worldbank.org/en/country/ukraine/overview
European Bank for Reconstruction and Development. (2020). Transition report 2020–21: The state strikes back. Country assessment: Ukraine. https://www.ebrd.com/publications/transition-report-202021-ukraine
Ember. (n.d.). Empowering Central and Eastern Europe: From coal to renewables. https://ember-energy.org/latest-insights/central-and-eastern-europe-from-coal-to-renewables
Energy Monitor. (n.d.). Europe renewables in 2022 in five charts – and what to expect in 2023. https://www.energymonitor.ai/tech/renewables/europe-renewables-in-2022-in-five-charts-and-what-to-expect-in-2023/
DOI: https://doi.org/10.35774/ibo2025.03-04.139
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
