15.05.2026
As part of the International Specialized Exhibition Green EnerTech – 2026, Energy Club will host the forum “Energy Decentralization 2026: Generation, Storage, and Financing”. The event will take place at the International Exhibition Centre in Kyiv on May 26.
The synergy of the Forum’s business program and the large-scale Green EnerTech exposition creates a convenient space for finding partners. Forum visitors will not only be able to obtain actionable algorithms from leading experts in the energy and financial markets but also explore the latest equipment for autonomous energy supply right at the exhibition.
Forum participants will discuss practical solutions for businesses and communities: building local generation, energy storage systems, microgrids, financing mechanisms, and energy resilience models under constant challenges to the Ukrainian power system.
One of the event’s leading speakers, Vitalii Shevchenko, CEO of Panorama Group of Companies, Chair of the Board of the NGO “Ukrainian Association of Energy Service Companies,” will address the topic of ESCO (Energy Service) mechanisms at the forum: how to modernize municipal infrastructure, install RES, and heat pumps without capital investments from the client.
In an interview with Energy Club journalist Olena Karpachova, he explained why ESCO mechanisms could become one of the key tools for energy decentralization in Ukraine, how communities and municipal enterprises can modernize infrastructure with zero upfront capital expenditures, which facilities currently hold the greatest potential for energy services, and why the future belongs to comprehensive solutions that combine generation, energy storage, energy efficiency, and modern financial models.
– Mr. Vitalii, today energy decentralization for businesses and communities is no longer a fashionable trend but a matter of survival. How do you see the main shift in clients’ approaches to energy efficiency and self-generation over the past two years?
– Over the past two years, a very important shift has occurred: energy efficiency and self-generation have ceased to be an “optional feature” or an image-building story. For communities, municipal enterprises, and businesses, it has become a matter of operational resilience.
Previously, many clients looked at such projects through the prism of savings: how much we would save on electricity or heating. Today, the issue is broader: will a hospital be able to operate during blackouts? Will a water utility company have energy for its pumps? Will a community be less dependent on tariff fluctuations and grid failures?
In other words, the main shift is from a “let’s save money” mindset to a “let’s ensure resilience, manageability, and predictability of energy costs” mindset.
– You head the Ukrainian Association of Energy Service Companies. To put it simply: what is the ESCO mechanism, and why can it become one of the key tools for energy decentralization in Ukraine?
– To put it simply, ESCO is a model where the client does not spend their own capital funds on modernization; instead, an investor finances the project and recovers their investment through the achieved savings.
For example, a municipal enterprise currently pays a lot for electricity. An investor installs a solar power plant, modernizes equipment, or reduces consumption. After that, the enterprise pays less, and a portion of these savings is directed over a certain period to repay the investment.
Why is this important for decentralization? Because communities get a tool for modernization without waiting for large budget programs or grants. It allows private capital to enter municipal infrastructure, create local generation, reduce consumption, and increase energy independence locally.
– In the forum program, your topic is framed as an opportunity to modernize municipal infrastructure, install RES, and heat pumps without capital investments from the client. How realistic is such a model for Ukrainian communities in 2026?
– This model is absolutely realistic, but it is important to understand it correctly. “Without capital investments from the client” does not mean “for free.” It means that capital expenditures are covered by the investor, and the client pays not from the budget upfront, but from future savings or reduced energy costs.
In 2026, for Ukrainian communities, this is one of the most practical models. Budgets are tight, the need for modernization is huge, and energy security has become critical. That is precisely why ESCO can serve as a bridge between community needs and private capital.
However, this requires well-prepared facilities, a clear baseline of consumption, a transparent contract, the political will of the community, and a professional investor who understands not only the technical side but also the financial model.
– Communities often say: “We understand the need, but we don’t have money in the budget.” Which facilities are currently best suited for ESCO projects: water utilities, hospitals, schools, street lighting, or heating systems?
– The best candidates for ESCO are facilities with high, stable, and predictable energy consumption. These are, first and foremost, water utilities, hospitals, schools, educational institutions, heating facilities, street lighting, administrative buildings, and other critical infrastructure.
Water utilities are particularly interesting because electricity constitutes a very significant share of their production costs. Properly integrating solar generation or modernizing pumping equipment can yield a tangible economic effect.
Hospitals are vital not only in terms of savings but also from a safety perspective. Continuous power supply there is a matter of people’s lives and health. Street lighting is also a great fit for ESCO, as the savings after modernization are clear and the operating schedule is highly predictable.
– What are the main barriers currently holding back the development of ESCO in Ukraine: legislation, client mistrust, contract complexity, access to financing, war risks, or the lack of quality project preparation?
– The problem is complex.
The first barrier is mistrust. Some communities still perceive an investor as a contractor, even though ESCO is an investment model rather than a classic procurement of works.
The second barrier is the quality of project preparation. Very often, there is a lack of proper energy analytics, baseline data, technical audits, and realistic financial models.
The third barrier is access to financing. An investor is ready to commit funds when they see a clear contract, a stable cash flow, and an acceptable level of risk.
The fourth barrier relates to war risks. They affect insurance, the cost of capital, and the willingness of financial institutions to lend to projects.
And the fifth barrier is regulatory complexity. The current legislation already allows for the implementation of ESCO projects, but to scale it up, it needs to be simplified, adapted to new technologies, and better integrated with RES, energy storage systems, and heat pumps.
– If a community or a municipal enterprise wants to launch an ESCO project, where should they start? What are the first three steps you would advise taking before even looking for an investor or a contractor?
– The first step is to gather high-quality data. You need to have a history of electricity, heat, and water consumption, expenses over recent years, information on tariffs, facility operating modes, and the technical condition of equipment.
The second step is to identify priority facilities. There is no need to start with everything at once. It is worth choosing 3–5 facilities with the highest consumption, the greatest savings potential, or critical importance to the community.
The third step is to conduct a preliminary energy analysis and draft a clear technical specification. An investor needs more than just a vague idea to “install a solar power plant”; they need a clear answer: which facility, what consumption, what problem, what expected effect, and what interaction model is possible.
– Is there enough private capital in Ukraine today ready to enter ESCO projects? What is needed to make investors finance such solutions more actively?
– Private capital does exist in Ukraine, but it looks closely at risks. An investor is ready to step in where there are clear economics, a transparent contract, a predictable cash flow, and a responsible client.
Today, the challenge is not just finding money. The challenge lies in preparing a sufficient number of high-quality, bankable, and investment-clear projects.
For investors to finance ESCO more actively, three things are required: quality project preparation, trust in the client, and financial instruments that mitigate risks. Then, private capital will be ready to enter much more dynamically.
– In your opinion, what practical answers should a participant of the “Energy Decentralization 2026: Generation, Storage, and Financing” forum take away from your panel?
– I would like participants to leave the panel not just with abstract inspiration, but with a very practical understanding of three things.
First: energy decentralization is not just about building generation capacity. It is about reducing consumption, local generation, storage, load management, and the right financial model.
Second: ESCO is a real tool that allows communities and municipal enterprises to modernize infrastructure without upfront capital expenditures from the budget.
Third: success depends on the quality of project preparation, not on slogans. If you have the data, technical analysis, clear economics, a responsible client, and a professional investor, the project can be delivered.
My main point is simple: Ukraine needs more than just rebuilding its energy sector; it needs a new model of energy resilience. And ESCO can become one of the practical mechanisms bridging the interests of communities, businesses, investors, and the state.
Today, energy decentralization for Ukraine is no longer about a technological trend or isolated “green” projects; it is about the ability of communities, critical infrastructure, and businesses to operate under conditions of constant risks, resource scarcity, and power system instability. Therefore, the future of Ukrainian energy lies in a comprehensive approach where generation, storage, energy efficiency, demand-side management, and the financial model function as a single system. It is this model that can not only reduce costs but also shape a new energy resilience for the country.
