ENERGY SUSTAINABILITY AS A COMPONENT OF UKRAINE'S ECONOMIC SECURITY: POSSIBILITIES OF DISTRIBUTED GENERATION IN WAR CONDITIONS

Abstract

The article examines energy resilience as a key determinant of Ukraine’s economic security under conditions of wartime risks and large‑scale destruction of energy infrastructure. It argues that energy resilience is not merely a technical concept but primarily an economic one, since the magnitude of electricity undersupply directly translates into losses for businesses, households, and critical infrastructure via the Value of Lost Load (VoLL) mechanism. The study proposes a methodological framework for assessing the economics of outages based on scenario analysis, consumer segmentation, and the calculation of expected systemic losses considering the frequency, duration, and structure of disruption events.

The article systematizes the advantages of distributed generation, microgrids, and battery energy storage systems as tools that reduce VoLL‑related losses and enhance the survivability of the power system. It demonstrates that hybrid portfolios – such as PV, BESS and backup generators – significantly reduce unserved energy for critical facilities, shorten recovery times, and generate positive economic effects in the form of net present value (NPV).

Furthermore, the study outlines strategic and regulatory prerequisites for the nationwide scaling of decentralized solutions, including deeper ENTSO‑E integration, the development of flexibility markets, the introduction of microgrid operational rules, and the formation of an institutional framework for resilience governance. It concludes that implementing a VoLL‑based investment planning approach, combined with energy decentralization and network digitalization, constitutes an optimal trajectory for Ukraine’s post‑war recovery and long‑term economic security.