Ukraine's industrial landscape, long defined by heavy manufacturing and energy-intensive metallurgy, is undergoing a quiet but crucial metamorphosis. Amid escalating electricity costs, wartime infrastructure challenges, and pressure to align with European Union sustainability goals, major enterprises are being compelled to rethink their energy strategy. Kamet Steel, one of the oldest and most significant steelmakers in the Dnipropetrovsk region, has emerged as a vanguard in this transformation. By launching energy modernization projects in 2023, the firm aims not just to cut costs but to fortify itself against potential blackouts and environmental scrutiny.
The initiative gained urgency after widespread disruptions to power grids across Ukraine in recent years due to the conflict, which exposed the vulnerability of industrial supply chains. In response, forward-thinking companies like Kamet Steel began retrofitting their internal energy systems to reduce dependency on external fluctuations and optimize internal efficiency.
Who’s Involved?
The protagonist of this energy revolution is Kamet Steel, which operates under the umbrella of Metinvest—a global steel and mining conglomerate with strategic importance in Eastern Europe. The key collaborator, YASNO Energy Efficiency, is a specialized division of YASNO (DTEK Group), offering turnkey solutions to modernize industrial facilities through energy service contracts (ESCOs).
According to the firms, these contracts are designed so that initial project investments are paid off through future energy savings, making the upgrade virtually cost-neutral for the client. “Our mission is to help large-scale industrial units shift toward smart, sustainable, and self-sufficient energy practices,” said a senior engineer at YASNO. “Kamet Steel is a textbook example of strategic modernization."
Revamping Substations for Prime-Class Power
A pivotal part of the upgrade involved a comprehensive overhaul of Kamet Steel’s internal substations, which are vital for powering high-load metallurgical equipment. The company focused on enhancing a key substation that supports a large portion of its production infrastructure. A major accomplishment here was transferring all connected consumers to the first class of power supply, meaning they now draw power from more stable and efficient proprietary 6 kilovolt (kV) networks instead of relying on less reliable external feeders.
This transition required intricate engineering: a new 1.47-kilometer cable line was laid across complex terrain. Additionally, existing cable structures were meticulously restored, waterproofing and water drainage systems were upgraded, and a modern complete distribution device (CDD) was installed. These efforts not only ensured uninterrupted and high-quality power but also reduced energy losses that previously inflated operational costs.
The result? A drop in the monthly power bill by nearly UAH 1.9 million, or approximately $50,000, in just the first three months of implementation.
Financial Gains from Precision Engineering
In the realm of steelmaking, even a slight dip in energy consumption can lead to significant financial reprieve. But at Kamet Steel, the savings have been far from modest. The combined effect of the two ESCO projects implemented with YASNO by the end of 2023 has already exceeded UAH 8 million (around $213,000) in cumulative savings.
More importantly, these aren’t short-lived perks. With energy tariffs expected to rise amid Ukraine’s regulatory realignments, these savings will likely compound over the next few years. "What we’ve done is not just a retrofit—it’s a long-term economic strategy that aligns with the country’s energy security goals," noted a Metinvest sustainability officer.
Kamet Steel is expected to reach an annualized savings of over $640,000, potentially reinvestable into further technological enhancements or employee training.
Direct Current Modernization for Peak Efficiency
Beyond alternating current upgrades, Kamet Steel also tackled the outdated direct current (DC) infrastructure. Historically, DC was supplied using motor-generators, which convert AC to DC using heavy rotating machines. These legacy systems were not only inefficient but prone to frequent maintenance.
The company, with YASNO’s help, replaced these with two new modular systems, each consisting of a step-down transformer and a high-efficiency converter. These units provide consistent and responsive DC supply while significantly reducing active energy consumption. Their compact design also frees up physical space and minimizes heat loss.
This part of the project alone is yielding monthly savings of around UAH 800,000, or $21,300. “It’s not just about money—it’s about performance stability,” said a YASNO energy engineer. “These new systems have halved the downtime incidents linked to power failures.”
Sustaining the Gains Amid Geopolitical Pressures
The steelmaker’s progress is especially noteworthy given the volatile geopolitical landscape in which it operates. Since 2022, repeated strikes on Ukraine’s energy infrastructure have challenged even the most resilient industries. Kamet Steel’s modernization efforts—conducted under threat of outages and raw material delays—signal a broader shift toward energy sovereignty.
The company’s operational resilience has been lauded internally and by regional authorities. “Every kilowatt saved is a victory for national endurance,” said a local official in Dnipropetrovsk. The fact that the upgrades have not disrupted ongoing production further demonstrates the professionalism of the implementation team and the modularity of modern energy systems.
Blueprint for Ukraine’s Industrial Rebirth
As energy-efficiency gains traction across Ukraine’s post-industrial economy, Kamet Steel’s achievements could become a national template. Experts predict a surge in demand for ESCOs, especially in metallurgy, cement, glass, and fertilizer production. Furthermore, Metinvest is now reportedly evaluating similar retrofits at its other plants, including those in Kryvyi Rih and Mariupol (subject to accessibility and geopolitical circumstances).
European observers have also taken note. With global scrutiny on CO₂ emissions from steel manufacturing, such interventions could become integral to ESG compliance, carbon credit accumulation, and future export competitiveness.
Kamet Steel’s success underscores an emergent truth: sustainable energy management is no longer a luxury—it’s a competitive necessity.
Key Takeaways:
• Kamet Steel saved over $427,000 in just 3 months by modernizing its power infrastructure.
• A new 1.47 km cable line & waterproofed cable structures were installed to enable efficient power redistribution.
• All key power consumers were shifted to first-class 6 kV supply, reducing system losses and boosting reliability.
• Outdated DC motor-generators were replaced by modern transformer-converter units, saving $21,300 monthly.
• Partner YASNO Energy Efficiency managed project execution under an ESCO model, using savings to repay investment.
• The upgrades position Kamet Steel as a model for Ukraine’s energy-secure, sustainable industrial future.
