Russian War Against Ukraine: Energy Dimension | DiXi Group Alert – weekly review
August 21 – 27
Summary
— In Work is ongoing to eliminate the consequences of the Kakhovka HPP detonation by the Russian troops. The first line of a water pipeline had been launched, providing supply to 25% of Kryvyi Rih’s residents, the government allocated an additional 7 billion UAH for the construction of over 144 km water mains.
— The occupiers of Zaporizhzhia NPP have started extracting water from a new groundwater well and plan to build new ones in the coming month – the IAEA.
— More than 70% of facilities in housing and utilities sector are ready for the heating season, almost all CHPs have restored their heating systems, and work is underway to repair power generating equipment – so the Vice PM Oleksandr Kubrakov.
— On August 21, the power system recorded a new summer consumption record. On August 22, a TPP unit was shut down for several hours by its emergency protection systems. On August 25, 2 TPP units were put into emergency repair for technological reasons.
— To cover the difference between increased consumption and limited generation capabilities, Ukrenergo used emergency assistance from Poland and Romania: on August 21 – 2 GWh (18:00-22:00), on August 22 – 3.9 GWh (13:00-22:00), on August 23-24 – 1.8 GWh each (18:00-22:00).
— For the first time since April, Ukraine exported electricity to Slovakia – on August 27, flat schedule, 200 MWh total volume. Exports continued in daytime hours (09:00-13:00) of the weekend, when solar facilities were actively operating and consumption somewhat lower.
— The intensity of trading on BCM is high, the Base index for September slightly decreased to 3,871.6 UAH/MWh (+9.9% as compared to August). DAM changed its status from moderate deficit (August 21-25) to surplus (August 26-27), the number of short hours increased significantly to 48.2%.
— The NEURC agreed on the cross-border capacity allocation rules with Romania, as well as the structure of the capacity allocation with Romania and Poland. Also, for the REMIT implementation, the Regulator approved changes to the Procedure for handling cases of administrative offenses and imposition of administrative fines, and published draft Procedure (Methodology) for Determining the Amount of Fines.
— The government extended the Regulation on public service obligations for gas supply until April 15, 2024. The provisions on supply to district heating companies for the needs of households remained unchanged, while the price for the needs of budgetary organizations will decrease more than twice (to 16,390 UAH/tcm).
— Instead, the approach to determining the price of gas supplied to DHCs for the needs of other consumers (“volume II”) has been changed. The cost will be based on UEEX quotations, with supplier’s markup (5%) and the value of money in time of the average expected late payment (5.5%).
— By the end of 2023 Naftogaz will receive operational control over all DSOs transferred under the group management – CEO Oleksii Chernyshov.
— On August 24, the Ministry of Economy of Ukraine concluded the second round of consultations with the EU delegation on joint work on the Ukraine Plan under the Ukraine Facility programme for 2024-2027.
— The UK provides loan guarantees worth 192 million GBP (225 million EUR) for Energoatom in its payments to Urenco for uranium enrichment services.
— Norway is allocating 1.5 billion NOK through the EBRD for the repair and maintenance of critical electricity infrastructure (865 million NOK, Ukrenergo), as well as for the purchase of gas (635 million NOK, Naftogaz).
— The Ministry of Energy of Ukraine and Mines Advisory Group agreed to cooperate in demining energy facilities and their surrounding areas.
