Why does a «gigawatt on paper» fail to become electricity at the socket, how can donor-supplied generation remain idle and unconnected for years and what can realistically strengthen communities’ resilience ahead of next winter?

Below are the key takeaways from an interview with Oleksandr Vizir, Sectoral leader for Energy & Climate at the Ukraine Facility Platform.

Where «new generation» comes from

Who builds new generation – and why? In most cases, private companies do. Their aim is rarely to become energy tycoons; it is to secure reliable power for their core business. To do so, companies install relatively small solar power plants or gas piston units.

Some entrepreneurs have also recognised that Russia’s attacks have left Ukraine’s power system structurally short of capacity –and that this deficit will persist. For them, generation has become a viable standalone business opportunity: when supply is scarce, adding capacity can be profitable. Yet their efforts are constrained by the power system’s technical limits, the pace at which equipment can be installed, and persistent administrative and regulatory bottlenecks.

Donor equipment: «delivered» does not mean «operational»

Donors have supplied Ukraine with a substantial amount of generating equipment. But that does not mean a gas engine unit can be connected to gas and electricity in a single day and immediately start operating. Commissioning is more complicated. Municipal utilities often lack either the specialised staff or the funding needed to install and connect donor-provided assets.

In one particularly stark case, even the state-owned nuclear operator Energoatom struggled to execute a similar task. More broadly, Ukraine still lacks a mature, standardised mechanism for structured cooperation between municipalities and private firms to solve these implementation challenges.

UAFP data indicate that approximately 900 MW of donor-supplied equipment is still not connected. This is roughly equivalent to the winter consumption of a major Ukrainian city.

The «active consumer» model as a pathway to a win-win partnership between business and municipalities

Preparing for winter, communities should not rely solely on donor assistance. UAFP recommends focusing on a model of mutually beneficial cooperation between municipalities and entrepreneurs. For example, a water utility has a grid connection point, predictable demand, and a critical need for electricity. A private partner can finance and build generation and sell electricity to the utility at a discount – provided the utility obtains «active consumer» status.

The community benefit is straightforward. Water utilities qualify as critical infrastructure and are typically exempt from scheduled outages. But they still draw power from the grid. If it covers its own needs through on-site generation, more electricity remains available for households and other businesses.

Distributed generation is not about small assets scattered across the country. It means power plants located near demand, producing electricity without excessive reliance on networks and transformer substations.
Oleksandr Vizir
Sectoral leader for Energy & Climate at the Ukraine Facility Platform

Water utilities and district heating companies typically have high contracted connection capacity, yet much of it remains unused. This «slack» can be converted into capacity for action: within the authorised limit, facilities can integrate both generation and battery storage. The owner of the generation asset can then export up to 50% of produced electricity to the grid without an electricity supply licence.

What could help Kyiv get ready for winter

For Kyiv, combining municipal assets with private investment to roll out small-scale generation under the «active consumer» model could substantially improve outcomes. The case is especially acute in the city’s Darnytskyi District, where residents experienced simultaneous outages of electricity and heating during the coldest periods.