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25.04.2023

Russian War Against Ukraine: Energy Dimension | DiXi Group Alert – weekly review

April 17-23

Summary

  • On April 21, critical infrastructure facilities were hit by attack drones in the Poltava and Vinnytsia regions. According to the director of A-95 Consulting Group Serhii Kuyun, Russian UAVs struck oil depots, which led to significant fuel losses. The situation remains difficult along the frontline, where the enemy is using artillery and aircraft.
  • In total, according to the Minister of Energy Herman Halushchenko, twenty-four generation facilities (TPPs, CHPs, HPPs and PSPPs), about half of the transmission system substations and main power grids were damaged. Meanwhile, Ukrhydroenergo has restored 500 MW of the 2,000 MW of capacity lost to Russian attacks, and Ukrenergo returned 2 main power lines into operation.
  • The IAEA Director General Rafael Grossi said that, during the week, the Agency experts reported constant sounds of shelling around the Zaporizhzhia NPP. Significant damage to the windows of the unit 4 turbine hall was recorded. Due to a serious reduction in the plant’s personnel in 2022, maintenance significantly decreased. The occupiers begun to shut down the ZNPP unit 6 to a cold shutdown, leaving only unit 5 in a hot shutdown to produce hot water and steam for the site.
  • On April 18, Ukrenergo and the ENTSO-E agreed to increase by 200 MW technical possibilities for the electricity trade capacity from Continental Europe to Ukraine/Moldova – to 1,050 MW.
  • At the same time, exports to Slovakia were suspended on April 21, and exports to Romania were not resumed due to the lack of a joint capacity auctions procedure. According to Ukrenergo’s statement, the NEURC has to approve such a procedure (on April 10, the Regulator published a draft of the corresponding act, and on April 17 – draft amendments to the Electricity Market Law). At the same time, the NEURC Chair Kostyantyn Uschapovskyi said that Ukrenergo stopped exports to Slovakia unilaterally, therefore the Regulator will conduct an inspection of the company.
  • The government approved at 30% the share of Naftogaz’s profit, which shall be paid as dividends based on the results of 2022. The rest should be directed to the purchase of Ukrainian-produced gas – Naftogaz Group announced the start of procurements at UEEX.
  • Ukraine has agreed with the World Bank to intensify joint thematic reconstruction programmes – so the PM Shmyhal. In particular, this includes the 500 million USD Re-Power project, under which an agreement was signed last week on the first 200 million USD to restore energy and heating systems in cities. Japan became the first country, which contributed 23 million USD to cover military risks of investing in Ukraine.
  • From May 10, the Diia service will launch the eRestoration programme in a test mode, which will allow Ukrainians to receive funds to repair damaged homes. Also, the government prohibited the collection of housing and utility arrears incurred after February 24, 2022, from residents of the territories under hostilities or temporary occupation.
  • Ukraine held the first command and staff Critical Infrastructure Resilience Exercises (CIREX), developed on the basis of the U.S. Cybersecurity and Infrastructure Security Agency (CISA) guidelines. 
  • Energoatom and Holtec International signed an agreement on cooperation in the deployment of small modular reactors. It envisages the construction of up to 20 SMR-160 reactors, with the first pilot project implemented by March 2029.
  • According to the Minister Halushchenko, the Lithuanian energy company Ignitis Group decided to allocate 10% (12 million EUR) of windfall profits to support the Ukrainian energy sector. 
  • The National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor’s Office completed the investigation into the suspicion of Andrii Kobolyev, the former CEO of Naftogaz. While the Security Service seized 18 mcm of gas (cost – more than 144 million UAH) in storage facilities, owned by the companies of sanctioned Vadym Novynskyi. As reported by the media, the Pechersk District Court of Kyiv handed over Ukrnaftoburinnia (a company related to Ihor Kolomoiskyi, Pavel Fuks, and Vitalii Khomutynnik) to the Asset Recovery and Management Agency.

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Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform