'Real investors'. Western businesses ready to build 1.5 GW of generation, says energy expert

American and European investors are ready to build over 1.5 GW of new power plants in Ukraine, said the Director of the Energy Industry Research Center, Oleksandr Kharchenko.

"I know about more than 1.5 GW of projects under development that are ready to start operating the moment they are given insurance. These are real American and European investors who are ready to invest in the Ukrainian energy sector even in times of war. But in order for them to really come in, in order for them to really implement these projects, they need to obtain insurance," he said at a briefing.

The main obstacle to the realization of these projects is the lack of a quick mechanism for insuring war-political risks.

Current insurance tools work too slowly because decisions take 9-12 months and are not designed for the large-scale application that Ukraine needs. Kharchenko believes that these mechanisms need to be shortened to a few months.

He added that access to private capital is a key tool for the rapid restoration of Ukrainian energy, as private investors make decisions and purchases much faster than the state.

If it is possible to speed up this process, foreign investments can significantly accelerate the restoration of energy infrastructure.

"They are going this way. But some take three months, some take 12 months, because it is a long process. If this process becomes faster, they will come faster," Kharchenko said.

Insurance of investments from war risks is provided by Law 3497-IX, which the Verkhovna Rada adopted at the end of 2023.

In March 2024, the Export Credit Agency began accepting applications from businesses for insurance against war and political risks. Previously, only foreign companies could purchase war risk insurance in Ukraine.

War risk insurance in Ukraine may become mandatory. At the end of August, the Financial Stability Council supported the bill.