Generators or relocation: What did the business choose to handle power outages, and how much does it cost?

The ability of Ukrainian enterprises to adapt to harsh war conditions and interruptions in energy supply amazes foreign partners. How did Ukrainian entrepreneurs survive last winter?

“We at the Association, when communicating with global companies, often hear from them that they are probably unable to operate under such conditions,” he said in a comment. Focus Anna Derevianko, Executive Director of the European Cooperation (EBA). Because, according to the addressee of the publication, even months of energy terror did not force Ukraine to stop its business and 99% of companies included in the union continue to operate in one way or another.

About how the Ukrainian business world has adapted to work in the conditions of Russian energy terrorism and what damage this has done to companies Focus in his latest review, “The Black Hole. How much money did the Russian energy terror get out of Ukraine?”

While some businesses prepared for possible power outages, others quickly responded to the challenges following the massive rocket attacks that began in the fall of 2022. According to EBA research, Ukrainian companies took the following measures to protect themselves from the negative effects of power cuts:

  • installation of generators or other uninterruptible power supplies: 86%;
  • provision of alternative communication resources and the Internet: 65%;
  • data transfer to cloud storage: 25%;
  • conducting cyber security activities: 22%;
  • relocation of enterprises or personnel: 10%.

Businesses had to invest substantial funds to prepare for power outages. According to the EBA research, the expenditures made among the members of the association as of the end of 2022 were as follows:

  • 40% of companies: up to $50,000;
  • 22%: $50-100k;
  • 24%: $100-200k;
  • 14%: over $200,000

At the Central Bank in response to a request Focus It was previously reported that cuts and restrictions in electricity supply affected representatives from all kinds of economic activities, but a significant portion of businesses adapted to difficult conditions by changing their work schedules and using generators. where Part of the retail trade and service sector showed particular flexibility. In addition, the NBU noted that the power outage had less negative impact on agricultural businesses, except greenhouses and livestock farms..

Each industry has its own unique features in the fight against energy terrorism. Let’s consider ways to adapt the business to difficult conditions, using the example of the agricultural sector. According to UCAB analyst Svetlana Lytvyn, Ukrainian agricultural companies and farms, in the face of significant financial constraints due to low grain and oilseed prices, have had to invest in alternative energy sources, namely:

  • installation of diesel and solid fuel generators;
  • using pellets from sunflower seed hulls for drying grain;
  • reduction of heat losses in grain dryers, their insulation and other measures to prevent losses;
  • replacement of elevator motors and elements that consume less electricity.

In addition, according to Svetlana Lytvyn, farmers have initiated the following long-term projects in the direction of energy independence and energy efficiency:

  • installation of solar panels;
  • construction of biogas plants.

“Overall, Ukraine’s agricultural sector has endured winter energy terrorism, despite significant financial losses,” says Svetlana Lytvyn. rising costs have led to an increase in the cost of products for end consumers. Globally, however, this has not destroyed the industry, but has accelerated the search for better options in the future.”

Previously Focus He wrote about how the Ukrainian IT sector works in conditions of full-scale war and Russian energy terror. Moreover Focus He analyzed why fruits and vegetables are becoming more expensive in Ukraine and what power outages have to do with it.

Source: Focus

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