Bioenergy in Ukraine: analytical note based on the results of the conference on renewable energy sources
The We Build Ukraine Analytical Center prepared an analytical note based on the conference “Green Energy for Reconstruction”, which took place on May 22, 2025, in Kyiv. At that time, UABIO was represented at the event by the Association’s Chairman of the Board, Georgii Geletukha.
The note contains the results of an analysis of key subsectors, a structured analysis of barriers and development potential, as well as conclusions and recommendations for the development of the sector. Consider in more detail the section on the bioenergy sector in Ukraine.
Current state
Bioenergy is a priority area for renewable energy development in Ukraine, particularly in agricultural regions, given the country’s high dependence on imported energy, especially natural gas, and the significant potential of biomass for energy use
Heat
At the end of 2021, about 3.5% of total heat production in Ukraine was accounted for by bioenergy. Also, in 2020, about 5 billion cubic meters or 17% of natural gas consumed by Ukraine was replaced by bioenergy.
Biomass
Ukraine has a huge biomass resource. Every year, agriculture produces about 94 million tons of waste (straw, corn stalks, sunflower husks, etc.), which is technically possible to produce about 34 million tons of fuel equivalent per year, but less than 15% of this potential is currently used.
Bioethanol
Today, there are 17 bioethanol plants in Ukraine that produced about 180 thousand tons of bioethanol last year, of which 100 thousand were exported. The construction of new bioethanol plants with a total capacity of up to 300 thousand tons per year is underway.
Challenges of the bioenergy sector
- Raw materials and logistics problems.
- High capital intensity of projects.
- Limited access to financing.
- Low local awareness.
- Subsidized gas prices.
- Regulatory gaps.
- CO2 tax for biomass boilers.
- Problems in the heat market.
- Export quotas.
Conclusions and recommendations for bioenergy
- Develop local heat markets.
- Promote community involvement.
- Develop the domestic biofuel market.
- Move to a model with a single price for natural gas.
- Focus on the development of 2nd generation biofuels.
- Increasing export quotas for biofuels and biomethane.
Steps for the overall development of renewable energy in Ukraine
- Creating a favorable investment climate. State guarantees and insurance mechanisms are needed to protect energy investments from military and political risks.
- Harmonization with the EU and market integration. Ukraine should fully harmonize its regulatory and market framework with the European one.
- Modernization of infrastructure. Damage to power grids as a result of shelling, as well as the need to connect new renewable energy facilities, require large-scale modernization of the energy infrastructure.
- Localization of equipment production. Renewable energy can become a driver of industrial development.
- Comprehensive support for innovation. Green energy is a rapidly evolving sector (storage, hydrogen, smart grids, etc.). Ukraine should invest in science and R&D in this area.
Read the full text of the analytical note by the We Build Ukraine
Check out the conference materials on renewable energy sources with UABIO participation
Renewable energy is the foundation of post-war Ukraine’s energy and economic transformation. By investing in solar, wind, and bioenergy today, the country is laying the groundwork for sustainable development for decades to come. The synergy of efforts of the government, business, and international partners can make Ukraine a success story of green transformation in Eastern Europe.
The We Build Ukraine Analytical Center is working on systemic solutions to accelerate the recovery of key sectors of the Ukrainian economy, particularly in the areas of construction, subsoil use, green energy, etc.
