Webinar Takeaways on Energy Security, Sustainable Development and Investment:

Energy market changes, electricity diversification opportunities and the market’s staffing needs

The introduction of Guarantees of Origin of electricity from renewable sources represented a significant step forward in reforming the energy market. An increasing number of companies are already utilizing such certificates, which are a standard in the European Union and numerous countries around the globe. This mechanism guarantees transparency and reliability in determining the sources of electricity, thereby providing consumers with a guarantee that their electricity comes from renewable sources.
 

“Some global businesses have already implemented a policy requiring suppliers to obtain such certificates. This not only creates an opportunity for producers to generate additional revenue, but also allows traders to demonstrate their commitment to sustainable development. It would be advisable to consider a mechanism, which can be potentially beneficial for both green electricity producers and their customers,”  said webinar moderator Fedir Ushakov, Audit Partner at BDO in Ukraine. 

Rizwaan Sahib, Renewable Energy Specialist at BDO USA, proceeded to analyze this topic further, focusing his speech on the prospects for the development of renewable energy sources in Ukraine. Special attention was paid to the technological innovations and challenges currently apparent within the industry in face of the global transition to green energy. Mr. Rizwaan began his presentation by outlining the prospects of renewable energy sources in Ukraine, including solar, wind and bioenergy, underscoring that Ukraine has significant natural and technical resources to develop these sectors. He then commented on the latest technological developments in renewable energy sphere, such as the improved efficiency of solar panels and wind turbines. Furthermore, Mr. Rizwaan discussed the integration of modern energy storage systems, which can provide a more stable energy supply.
 

“Investing in renewable energy is an effective strategy for reducing the environmental burden and ensuring long-term energy security for the country,”  he stated.

Rizwaan concluded his speech with an optimistic outlook on the future of renewable energy in Ukraine, highlighting the potential contribution of this industry to the country’s energy independence and sustainable development.

Klavdiia Yatsyshyna, Head of the Ukraine Energy Initiative of the UN Global Compact in Ukraine, addressed the critical issue of the shortage of qualified personnel in the energy sector, which impedes the implementation of energy projects and innovations. Klavdiia emphasized that the scarcity of skilled professionals in the energy sector hinders the advancement and implementation of new technologies. This challenge is pervasive and constrains the capacity of organizations to attain their sustainability goals.
 
Despite the present challenges, there are also opportunities to tackle the staff shortage, for instance. Potential solutions include investing in vocational education and training, creating incentives to attract young people to the industry and implementing corporate professional development programs. International cooperation is another crucial factor in resolving the staff shortage, including sharing expertise, internship programs and cooperation with educational institutions abroad.
 

“The energy sector requires a new generation of specialists able to implement innovations and keep pace with the rapid advancements in technology. We must proactively work to cultivate, nurture and retain talent in our industry,”  said Ms. Klavdiya. 

Sustainability reporting — new challenges and opportunities

Gabi Ionita, Corporate Governance and Sustainability Reporting Specialist at BDO Romania, discussed the significance of the new EU reporting standards for the energy sector, providing a comprehensive overview of the amendments made to the EU directives, which require companies to include detailed sustainability information in their corporate reports. 

The primary points of his report included:

1. Legislative developments: Mr. Gabi commenced by providing an overview of the most recent amendments to EU legislation, with a particular focus on the Corporate Sustainability Reporting Directive (CSRD), which broadens the scope of sustainability reporting requirements and encompasses a significant number of companies.
2. Impact on companies: He highlighted that such legislative changes would impact not only European companies, but also those engaged in business with the European Union or planning to enter this market. This signifies the obligation for Ukrainian companies to also align themselves with these requirements.
3. Transparency and attractiveness for investors: Gabi emphasized that more detailed sustainability reporting enhances a company’s transparency and attracts investors who are increasingly prioritizing sustainability and corporate responsibility.
4. Technical aspects and recommendations: He drew attention to the importance of integrating sustainability systems into the company’s overall strategy and business operations.

 

“The new EU directives require companies not only to communicate their responsibility to society and the environment, but also to actively implement the principles of sustainable development in their strategies and daily operations,”  said Gabi Ionita.

The next speaker in the sustainability block was Anastasiia Skok, Head of ESG at BDO in Ukraine, who focused on the practical aspects of preparing ESG reports in the context of new EU requirements and discussed in detail how Ukrainian companies can and should adapt their processes to meet these standards. Ms. Anastasiia explained that changes in EU legislation require companies to report on sustainability not only as part of their financial statements, but also in a broader corporate context. Such reports are becoming an essential tool for attracting investment and partnerships in Europe. She outlined the specific steps that companies should take to comply with the new standards, including the implementation of integrated IT systems that allow the collection and analysis of data on environmental, social and governance aspects of their operations.
 

“Compliance with the new European reporting standards not only opens the door to the EU markets, but also encourages the internal growth of companies, making them more organized and responsible,”  said Anastasiia Skok.

New fundraising opportunities

Ihor Markevych, Community Officer at the European Institute of Innovation and Technology (EIT), presented an overview of potential financing avenues, with a particular focus on strategies for attracting investment in the Ukrainian energy sector. He addressed both traditional and innovative financing strategies for renewable energy projects.

Since 2008, the EIT has established itself as a leading European innovation network, attracting investments totaling EUR 9.5 billion and supporting over 9,900 businesses. These include grant programs ranging from EUR 10 thousand to EUR 250 thousand, venture capital funding opportunities and access to the network, partners and stakeholders of the ecosystem.
 

“Now is a great time to invest in the Ukrainian energy sector. The improved regulatory environment and increased investor interest present a unique opportunity for the development and implementation of large-scale projects,”  said Mr. Ihor.

However, before receiving additional funding for a project, there is a need in its thorough preparation to increase the likelihood of securing funds. Andrii Borenkov, CFA, Partner and Head of Advisory at BDO in Ukraine, explored the topic further. He described the process of project preparation, emphasizing the importance of thoroughly working out an idea before presenting it to potential investors. He noted that the probability of successful financing increases significantly when the project is meticulously structured and has clearly defined objectives and anticipated outcomes.
 

“In the initial stages of project development, it is crucial to seek professional consultancy. This allows not only to comprehensively assess the potential and risks, but also to identify the most effective strategies for its implementation and attracting investment. Consultants can provide critical analysis and recommendations that will significantly improve the project’s chances of success,”  Andrii advised.

In conclusion, it is of the utmost importance for regulators to streamline processes in order to foster investment and guarantee greater transparency regarding government initiatives on energy independence and sustainable development. 

Key recommendations after attending the webinar:

1. Integration of the latest technologies: Companies should integrate advanced renewable energy and energy-saving technologies in order to improve efficiency and reduce their environmental impact.
2. Improving the regulatory environment: The government and regulators should streamline the investment process, implement tax incentives for green projects and provide support for innovation.
3. Professional advice: Companies should seek professional advice at the initial stages of the project in order to better assess risks, develop strategies and ensure a successful investment.
4. Active participation in financing: It is advised to consider a variety of funding sources, including international grants and private investment, in order to meet the needs of energy projects.

At BDO in Ukraine, we actively encourage companies to engage in discussions and initiatives aimed at developing sustainable energy in Ukraine. Your participation and input are pivotal for creating a strong, sustainable and innovative energy infrastructure. Please, contact our specialists at Sustainable development services and Development, analysis and completion of investment projects for additional support and consultancy to maximize your potential and achieve success in this vital area.
 
Your initiative today becomes an investment in your future tomorrow.