Energy communities as a tool for decentralization and sustainability of the Ukrainian energy system

As Ukraine rebuilds its energy sector under the strain of war, communities are increasingly seeking tools to strengthen energy security at the local level. One promising solution is the development of energy communities – a model also used in the European Union, where local production and consumption of energy not only enhances independence but also empowers citizens to actively participate in the green transition.

While Ukrainian law already allows for energy cooperatives, their use remains rare. The only notable example to date is the cooperative “Soniachne misto” [Sunny City] in Slavutych.

Today, Ukraine is working to align its legislation with EU standards by introducing the concepts of renewable energy communities (Directive 2018/2001, RED II) and citizen energy communities (Directive 2019/944). The challenge lies in choosing the right approach: either developing a simplified, unified Ukrainian model, or adopting both concepts separately with clear legal definitions. In both cases, careful adaptation to Ukrainian realities is essential.

At the local level, many municipalities and associations of homeowners already demonstrate interest in decentralized energy solutions, such as installing solar panels or cogeneration facilities. However, their initiatives often face administrative hurdles, unclear procedures for grid connection, and a lack of technical expertise. Communities are also calling for simplified rules of engagement with distribution system operators (DSOs) and better access to consulting and financial support.

Following the event, NGO Ecoaction, together with other CSOs, developed a policy paper available in Ukrainian on the Ecoaction website.