The EBA identified three reasons hindering the swift recovery of the energy sector.

The government must address the financial issues in the energy market to restore investor confidence and engage them in the faster and more efficient construction of new energy capacities in Ukraine.

This was reported by RBK-Ukraine with a link to the co-chair of the European Business Association's energy committee, Yarina Skorokhod.

"Due to the ongoing attacks, a logical question arises about building new capacities. However, despite this, the prospects for new generation remain unclear," Skorokhod stated.

According to her, the primary issue is that investors do not see the point in investing in the electricity market where prices are manually regulated.

"The price caps established back in 2019 are still hindering the development of generation and making effective imports impossible. This forces 'Ukrenergo' to purchase expensive emergency assistance, and sometimes to impose restrictions," Skorokhod explained.

In the co-chair's opinion, despite the apparent problems, the regulator has not yet changed the price limits.

The second problem Skorokhod identifies is the existence of circular debts in the energy sector, which amount to tens of billions of hryvnias.

"And this is just the tip of the iceberg, because the main issue is that there is not even a plan to repay these debts," Skorokhod emphasized.

Another significant challenge, according to the expert, is the need for full financing of 'Ukrenergo' for urgent repairs.

Skorokhod mentioned that the proposed tariff for 'Ukrenergo' sends a positive signal for the renewable energy industry. It includes 23.7 billion hryvnias, and the National Commission for State Regulation of Energy and Public Utilities (NERC) also suggests incorporating last year's debts of 2.7 billion hryvnias into the tariff.

"Therefore, investors hope that a decision will be made in the near future," the expert concluded.

As previously reported, the debt of NEC 'Ukrenergo' for the compensation of electricity production from alternative sources to the state enterprise 'Guaranteed Buyer' exceeded 30 billion hryvnias.

Experts and investors urge the government to prevent further accumulation of debts by 'Ukrenergo' for services related to increasing electricity production from renewable sources.