Volodymyr Shvedkyi has been leading Energy Trade Group (ETG.UA) for ten years. Over this period, the company's business has expanded beyond electricity and gas supply to end consumers, establishing a broad network of regional offices across Ukraine. ETG.UA has also significantly increased investments in renewable energy generation, earning a spot in Forbes Ukraine’s ranking of the 20 largest players in the alternative energy sector last year.

In addition, ETG.UA's team has begun to develop related business lines related to renewable energy services and the digitalisation of customer services. Volodymyr Shvedkyi takes pride in the fact that despite the full-scale war, he managed to establish the country’s first specialized center where Ukrainian engineers can develop unique energy storage systems. Moreover, last year, ETG.UA launched full-cycle production—also the first in Ukraine—and introduced its own energy storage systems with Revention brand.

In an open conversation with “Ukrainian Energy”, Volodymyr Shvedkyi discussed the achievements and challenges ETG.UA faces in the gas and electricity markets during wartime. He touched on competition constraints, the struggle between the state-owned JSC “Energy Company of Ukraine” (ECU) and the private holding DTEK owned by Rinat Akhmetov, and market distortions. Additionally, for the first time, he shared insights about ETG.UA’s innovative project—a virtual power plant. But before diving into details, we explored ETG.UA’s strategic priorities in wartime conditions.

What direction have you chosen for Energy Trade Group’s business development?

In short, our goal is to ensure that our electricity supply portfolio consists entirely of renewable generation. Strategically, we are committed to decarbonization and fostering the sustainable development of Ukraine’s economy.

Which segment of the energy market is your priority?

Commercial consumers—entrepreneurs who have been sustaining Ukraine’s economy since the start of the full-scale war. We are also developing special offers for households and plan to expand into this segment once it opens up to competition. We take a proactive role in the market to seize every opportunity.

Has the full-scale invasion changed your business?

Undoubtedly, every Ukrainian has faced immense pressure due to Russian aggression. ETG.UA employees have leveraged all available resources to continue meeting our clients’ energy supply needs, maintain high-quality service, and expand our renewable energy generation capacity despite the extremely challenging wartime conditions. We have overcome numerous obstacles to launch our energy storage production. I am proud that our project was the first in the country and that ETG.UA remains the only national manufacturer of small- and medium-capacity battery storage systems (BESS).

Last year, we installed more than 10 MWh of batteries for companies in different regions of Ukraine. It is worth noting that the reliability of the Revention brand has been confirmed by the experience of our users in the frontline areas. In particular, numerous social infrastructure institutions such as banks, medical and educational institutions, and small coffee shops in Kharkiv, Zaporizhzhia, Dnipro, Poltava, Kherson and other regions have become our customers and are now provided with a stable energy supply. Beyond manufacturing, a key advantage of our energy storage solutions is the development of exclusive software that optimizes their use. We even established a dedicated R&D department for this project.

Moreover, in the first half of 2025, we will install our first BESS for our solar power plant in Berezan, Kyiv region, with a capacity of 2 MWh. Our annual goal is to reach 50 MWh of installed storage capacity.

Before launching your own production, ETG.UA focused on energy trading. What insights can you share about the current state of the sector?

We are facing a reality where the gas market has effectively ceased to exist. The reason is the strengthened role of the state-owned Naftogaz of Ukraine, which now controls 85% of gas supply and 90% of distribution. Meanwhile, electricity trading is increasingly divided between major players—DTEK and the state-owned Energy Company of Ukraine, which is steadily moving toward a monopolistic position.

What has contributed to Naftogaz’s dominance in the end-user segment?

All market segments except for industrial consumers have been distorted by government regulations requiring certain categories (households, utilities, district heating enterprises) to purchase gas exclusively from Naftogaz at below-market prices. Naftogaz also engages in aggressive price dumping to attract large industrial consumers that have survived the market turmoil.

Until recently, the gas supply segment was dominated by private companies under the 'Tviy Gazbut' brand. However, after the government transferred control of Regional Gas Company’s distribution networks to Naftogaz, the state entity took over this market as well. This shift has not only strengthened Naftogaz but also undermined the market liberalization process that was underway before the war.

What about electricity trading?

The electricity sector has seen significant changes. While the market opened to trading in 2019, today’s largest players are state-affiliated companies (Energoatom, Ukrhydroenergo) alongside D.Trading (part of DTEK). Since the full-scale invasion, a new major state-owned player, Energy Company of Ukraine (ECU), has entered the market, relying on aggressive price dumping and administrative influence to expand its consumer base.

Throughout 2024, we witnessed competition between ECU and D.Trading, which benefited large consumers who could buy electricity at 3-4% discounts off the day-ahead market price (DAM). However, in 2025, these companies are likely to shift focus from expansion to increasing profits, leading to higher electricity costs for businesses.

The war has severely damaged Ukraine’s energy infrastructure, particularly coal-fired power plants that provided affordable electricity. This has resulted in a supply deficit, particularly during peak hours, necessitating increased reliance on expensive gas-fired generation.

Does ETG.UA cooperate with ECU or D.Trading?

Yes, we have worked with both ECU and D.Trading, and our experience confirms that neither company views independent traders or retailers as long-term partners. They prefer selling electricity directly to end consumers at significant discounts while offering less favourable terms to independent traders like ETG.UA, making such partnerships unprofitable.

Despite market challenges, ETG.UA continues to grow. What contributes to this success?

Our portfolio of assets and an effective sales strategy for attracting new consumers. We are expanding our renewable generation capacity to reduce reliance on monopolists and dominant players.

Our efficiency is reflected in our growing client base, which increased by 20% in 2024 compared to the previous year. This growth was also driven by the exit of dozens of small traders and suppliers from the retail gas and electricity markets, prompting consumers to switch to ETG.UA.

You mentioned an innovative virtual power plant project. Can you elaborate?

Our virtual power plant (VPP) will be a groundbreaking technological advancement in renewable energy. It will integrate our green generation projects (with a total capacity of at least 100 MWh), energy storage systems (50 MWh), and over 5,500 clients.

This system will be managed by unique software, enabling all participants to benefit from synergy. ETG.UA, as a trader, will optimize its portfolio, reducing costs; consumers will save on electricity; and energy storage operators will manage demand more effectively, generating mutual benefits.

Do you believe Ukraine is ready for such projects?

We remain optimistic about the future. The key challenge is restoring lasting peace and eliminating political corruption at the state level. Government decisions should support energy decentralization and market competition rather than restrict them. Otherwise, modernization efforts will be futile.