Russian War Against Ukraine: Energy Dimension | DiXi Group Alert – weekly review
- Occupiers continue the attempts to hit critical infrastructure facilities, that due to Ukrainian defence have minor damages. However, equipment of the generation facility in Donetsk region was damaged and disconnected from the grid because of Russian shelling in the night of April 28, according to the Ministry of Energy.
- According to the Centre for Investigative Journalism, the occupiers began to unauthorisedly discharge water through damaged sluices at the seized Kakhovka hydroelectric power station. It is noted that such actions can lead to the destruction of the hydroelectric power plant, in particular, the underwater part of the building and the engine room.
- The Russian occupiers the occupiers have placed combat positions on the roofs of ZNPP power units and are preparing for defence. They informed the IAEA that about 3,000 employees who work at the plant have contracts with Rosatom, 1,000 are “in the process of being agreed”, 1,000 remain with Energoatom contracts, and another 1,000 are in Energodar and are called to work as needed.
- Deputy Energy Minister Farid Safarov said that Ukraine needed $3.4bn to prepare for the next heating season, in particular $1.2 billion will be spent on fuel, while the rest was needed to restore infrastructure. The government has identified six settlements where reconstruction will be carried out comprehensively and according to new principles as part of a pilot project. The State Agency for the Restoration and Development of Infrastructure prepares to finance the first facility from the budget money.
- Power plants began the annual repair campaign, which is mandatory for preparing for the next winter period. The restoration works of several power units are compensated by active operations of hydro power stations and RES units. According to Volodymyr Kudrytskyi, Chairman of the Management Board, capacity deficit can occur also this summer. It will be compensated for by increasing the capacity of available thermal power plants.
- According to the Head of the Commission, Konstantin Uschapovskyi, the situation with the termination of electricity export to Slovakia is extraordinary, and the lost profit is about 20 million UAH per day. At the same time, on April 26, the ways to urgently resume exports were determined at a joint meeting of the Regulator with stakeholders. In particular, DSOs in both countries will approve the export agreement developed by Ukrenergo and submit it for approval of the NEURC.
- The NEURC approved changes to the rules of operation of the Guaranteed Buyer balancing group, which will regulate the entry and exit procedure of entities, including electricity facilities, which have a “green” tariff, from the balancing group of the Guaranteed Buyer. Mobile (autonomous) power plants with a capacity of up to 5 MW will not require licensing.
- The draft law No. 9011-d On Amendments to Certain Laws of Ukraine on the Restoration and Green Transformation of the Energy System of Ukraine was also registered. In the gas sector, this draft law provides for amendments to the regulation of the biomethane register to extend the biomethane origin guarantee regime not only to pipeline resources, but also to compressed and liquefied biomethane.
- The Cabinet of Ministers has extended the public service obligations until 31 August 2023. Thus, the gas price for residential consumers will remain at the level of 7.95 UAH/mcm.
- The program for Naftogaz purchasing gas of Ukrainian origin does not seem to be quite successful. Resulting from the UEEX trade, only 1.6 mcm were purchased, the average weighted purchase price of resource in storages in April is 10,972 uah/tcm (VAT excl.), and of resource in May on the virtual trading point was 10,767 UAH/tcm (VAT excl.).
- According to media reports, Ukrtransnafta is planning to increase the tariff for transit of Russian oil through the Druzhba pipeline. From June 1, the rate for pumping will increase by 25%, and from August 1, by another 23.5%.
- The International Working Group on Sanctions Against Russia (the Yermak-McFaul Group) presented an action plan that will facilitate the introduction of further sanctions. According to the President Volodymyr Zelenskyi, this document will be on the tables of all key world leaders.
- Six memorandums of cooperation in various fields and between regions of the countries were signed during the Ukraine Recovery Conference in Rome. These included on the cooperation between We Build and Ukrhydroenergo on HPP construction. Meanwhile, the Ministry of Energy of Ukraine and the Ministry of Climate, Energy and Utilities of the Kingdom of Denmark signed an agreement expanding their energy partnership in the field of wind generation.