Is There an Alternative to Traditional Energy Sources, and How Much Does It Cost?

In relatively stable times for our energy sector, such as in 2018, Ukraine produced 159 billion kWh of electricity per year, with the majority generated by nuclear power plants (Figure 1). The contribution of alternative sources accounted for less than 2% of the total generation.

The largest TPPs in Ukraine were the Burshtyn, Kurakhove, Zaporizhzhia, and Vuhlehir power stations, with Kharkiv CTPP-5 being the largest. Currently, the Zaporizhzhia TPP is under occupation, while the rest have been destroyed or significantly damaged. As of summer 2024, only 27% of large TPPs remain operational.

The estimated direct losses inflicted by Russia on power generation facilities between 2022 and 2024 amount to approximately USD 5 billion, with around USD 3.6 billion attributed to TPPs. The estimated cost of restoring TPPs and CHPPs in Ukraine istotal estimated cost of restoring TPPs and CHPPs in Ukraine stands at USD 21.7 billion. This figure includes the full-scale reconstruction of destroyed and damaged infrastructure, following the principle of “building back better.” 

However, considering the Russian threat will not disappear in the coming decades, is it necessary to rebuild such large facilities? One alternative is decentralized generation, which involves installing small power plants that run on fossil fuels. Another option is the development of green energy. But to what extent can renewable energy sources (RES) replace “traditional” generation? To answer this question, let’s examine a few examples.

Renewable energy sources (RES), such as solar, wind, water, geothermal heat, or organic waste, are continuously replenished by nature. 

Average efficiency of solar panels and their use for large facilities

Let’s consider a large hospital similar in size to Okhmatdyt. We will attempt to roughly estimate its energy consumption and calculate the associated costs (for this example, we do not account for equipment depreciation or inflation).

Research indicates that energy consumption accounts for approximately 20% of hospital budgets. On average, a hospital consumes 200-300 kWh per square meter annually. Therefore, a hospital with an area of 67,000 m² requires at least 13,400,000 kWh (13.4 GWh) per year (67,000 × 200), translating to approximately 36,712 kWh per day or 1,530 kWh per hour. Given an average sunlight duration of 3.5 hours per day (the average in winter), the hospital would require 26,225 solar panels with a capacity of 400 W each to meet its energy needsto meet its energy needs, the hospital would require 26,225 solar panels with a capacity of 400 W each. At an average market price of UAH 12,000 per panel, the total cost would amount to nearly UAH 315 million. Considering that each panel occupies around 2 m², installing such a number of panels would require 52,450 m², which is more than five football fields. Not all hospitals have such available space or the necessary personnel to maintain a solar power system of this scale. 

At the same time, solar energy is generated the most when its demandthe demand for it is the lowest—namely, in summer when the sun shines brightly. Therefore, to practically utilize solar panels, batteries are required. For our hypothetical hospital, this would mean 3,671 batteries with a capacity of 10 kWh each. A single battery costs approximately UAH 207,500, bringing the total cost to nearly UAH 762 million. Considering the dimensions of a battery (68х48х24 cm), the total volume required to store such a number of batteries would be 288 m³, which translates to a fully occupied space with a height of 2 meters and an area of 12×12 meters. In reality, the room would need to be larger to allow for proper air circulation between the batteries. Additionally, the total weight of these batteries would be 312 tons.

Does it make sense to transition a hospital to solar panels fullyto fully transition a hospital to solar panels?

Among the advantages of such a transition are energy independence, stable supply even during power outages, environmental friendliness, and reduced electricity costs in the long term. Under the green tariff, such a system could pay off in approximately 19 years.

As calculated above, the solar panels and batteries cost cost of solar panels and batteries would amount to UAH 1.077 billion. Infrastructure expenses (including inverters, frames, installation, etc.) can reach up to 40% of the panel cost, which is approximately UAH 126 million (Figure 2). Thus, the total minimum cost of this system for the hospital would be around UAH 1.202 billion. TTheoretically, these investments could theoretically allow the hospital to operate without external energy supply. However, the hospital would still incur costs for replacing panels and batteries after their lifespan ends and, as well as for ongoing maintenance and repairs.

Cost distribution for a hospital solar installation (around UAH 1.202 billion) / Infrastructure / Panels / Batteries 

Thus, to fully supply just one large hospital with solar energy, significant investments andnot only significant investments but also substantial space would be required. Therefore, it is more practical to supply such large facilities through alternative energy sources—such as diesel generators or green power plants located outside the city. Solar panels with batteries installed on rooftops can serve as a supplementary energy source, and they could also generate additional income if the hospital sells excess energy to the grid. 

On the other hand, households that consume significantly less electricity can fully meet their energy needs with rooftop solar panels. Let’s conduct a similar calculation for a private home. According to the National Commission for State Regulation of Energy and Utilities, in 2021, the average monthly electricity consumption of a household was 168 kWh (5.6 kWh per day), while for households using electric heating, consumption reached 954 kWh per month (31.8 kWh per day). 

ConsideringTaking into account a 30% energy reserve, a household without electric heating would need a solar power system generating 7.28 kWh per day (5.6 kWh × 1.3). The required panel capacity would be 2.08 kW, calculated as 7.28 kWh/day ÷ 3.5 sunlight hours. This means the household would need six solar panels, each with a capacity of 400 W (2.08 kW ÷ 0.4 kW = 5.2, rounded up to 6). Similarly, for a household with electric heating, 30 panels would be required. The total area needed would be 12 m² for the smaller system and 60 m² for the larger one—both of which are feasible for installation on a private house roof. 

Installing solar panels on apartment buildings is an efficient solution to reduce energy costs for common infrastructure, such as elevators, pumping stations, and hallway lighting. For instance, a 30 kW system, consisting of 75–80 solar panels, would require around 150–200 m² of rooftop space and could generate 20 to 23 kWh per day during the summer months. This amount of energy is sufficient to power an elevator, which consumes approximately 15–20 kWh per day, and a pumping station, which typically uses 3–5 kWh dailyper day. Lithium iron phosphate batteries with a total 40–50 kWh capacity capacity of 40–50 kWh can be used to store the generated energy, ensuring full-day autonomous system operation. This could be achieved with 4–5 batteries, each with a 10 kWh capacity. Hybrid inverters with a total capacity of 30 kW are required for energy conversion. By utilizing solar panels, apartment buildings can cover their needs for critical equipment. 

These examples demonstrate that solar panels can help small-scale facilities achieve energy self-sufficiency. However, more extensivelarger facilities, especially industrial enterprises, cannot operate without traditional power generation. This is important an important consideration when discussing Ukraine’s energy sector’s “green future.”

Conclusion

The development of energy infrastructure is a step towards fulfilling Ukraine’s international commitments, such as the Sustainable Development Strategy until 2030 and the European Green Deal, as well as integrating into the European Union’s energy system. 

Renewable energy sources offer long-term environmental and economic benefits, even though they require significant initial investments. These benefits include the decentralization of energy production, which reduces transportation costs, decreases dependence on fuel imports, and minimizes environmental impact in the long term. Of course, solar panels will eventually need replacement and disposal, but many of the materials they are made from can be reused. 

RES will also enable households and businesses to generate their own energy, increasing their resilience to crises and providing affordable energy in remote areas. Thus, even during attacks on energy infrastructure, cities, towns, or remote villages can have light and heat thanks to alternative energy sources. 

At the same time, transitioning to RES requires significant investment. Moreover, solar power plants, in particular, cannot become the primary energy source for extensivelarge facilities. This is why nuclear energy and fossil fuels will remain the primary energy sources for the foreseeable future. In this regard, the restoration and modernization of TPPs and CHPPs—as transitional and later backup energy sources—could become part of Ukraine’s competitive, resilient, and independent energy system.

At any rate, everyone can—and should—one thing everyone can—and should—do is save energy, because the cleanest energy is the energy that isn’t wasted.