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

April 3-9

Summary

• Energy facilities suffer from Russia’s attacks mostly in the eastern frontline regions (Donetsk, Luhansk and Kharkiv) – Ukrenergo.
• According to the company’s estimates, in the 2022-2023 heating season, the Russians carried out over 1,200 missile and drone attacks on power plants, main grids and other key energy facilities. 43% of the main power grids were damaged, 80% of the facilities have been restored, albeit partially.
• According to the UNDP and the World Bank, in 2022, damage to Ukraine’s energy infrastructure as a result of the war exceeded 10 billion USD, mostly (about 6.5 billion USD) in the electricity sector. In particular, 41 of 94 important high-voltage substations were damaged or destroyed, available generating capacity decreased by 61.4%.
• According to Ukrenergo, due to this damage, the reliability of power supply to consumers in most regions of Ukraine is significantly lower, and a drop in RES generation and adverse weather conditions can lead to significant outages.
• According to Energoatom, the occupiers are abducting employees of the temporarily occupied Zaporizhzhia NPP for “preventive conversations” in torture chambers to force them to take Russian passports and later sign contracts with the fake Russian “NPP operator”. Also, they continue illegal construction on the NPP site.
• The Minister of Energy Herman Halushchenko signed an executive document allowing ‘to start the process of restoring’ electricity exports. This will allow attracting financial resources for the reconstruction and repair of damaged infrastructure. In March, Ukraine could have received about 500 million UAH – so the Verkhovna Rada Committee on Energy and Utilities Chair Andrii Gerus.
• The NEURC adopted the final decision on the certification of Ukrtransgaz as storage system operator following the procedure set by Regulation (EU) 2022/1032.
• Ukrnafta plans to restore the functions of exploration and search for fields, which have been absent in the company for the past decade.
• The government approved the Strategy of Public Policy on Internal Displacement by 2025 and the 2023-2025 Operational Plan. The documents provide for state support to IDPs during evacuation, social adaptation and return to their place of residence.
• The State Energy Supervision Inspectorate published the draft law, which proposes a new model of state control in the fields of electricity, heat supply and natural gas. 
• The Ministry of Foreign Affairs invited companies to register for the Ukraine recovery conference to be held in Rome on April 26.