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

October 9 – 15

Summary

• • Gas infrastructure became the target of the aggressor’s deliberate shelling. On October 11, a drone attack was launched on a gas production facility of Smart Energy in the Kharkiv region, with equipment severely damaged and a building completely destroyed. On October 12, damage at industrial sites of gas distribution stations was reported in the Kharkiv region; the fires at both facilities were contained and the operation of stations was not interrupted.
  • On October 15, a missile strike knocked out a 150 kV substation in the city of Kherson, leaving 130,000 consumers without electricity supply.
  • The IAEA reported that the occupiers at ZNPP are putting Unit 5 into a “hot shutdown” to start district heating in Energodar. The IAEA experts gained access to the roof of Unit 2 and did not find any explosives, yet still have no simultaneous access to all six turbine halls.
  • Over 99% of the housing and utilities facilities are prepared for the heating season – so the government of Ukraine.
  • Centerenergo has completed preparations for winter by reconnecting a 160 MW unit of the Zmiyivska TPP after repair. As of early October, DTEK completed repairs of 16 out of 19 TPP units planned, and two units were deconserved and modernized (over 500 MW); thermal generation was 84% ready – so the CEO of Maksym Timchenko.
  • On October 9, a 300+ MW hydropower unit came out of scheduled maintenance. On October 11, the 415 MW unit of the Rivne NPP came out of maintenance, running on Westinghouse nuclear fuel.
  • Trading increased in the bilateral contracts market. A total of 265.7 GWh were sold at the UEEX, which was almost 6 times higher week-on-week. The day-ahead market demonstrated high volatility.
  • The average daily gas injection into storages decreased to 25.5 mcm. On this background, the CEO of Naftogaz Oleksii Chernyshov stated that 16.5 bcm should be stored by November 1.
  • Chernyshov also assumed adding a 7th representative (from the government) to the Supervisory Board of Naftogaz and publicly advocated the adoption of draft law No. 5593-d, which provides for expanding the powers of SOEs supervisory boards, in particular in terms of approving financial plans.
  • The NEURC approved the structure of capacity distribution in the Ukraine-Hungary direction and published 3 drafts for implementing the law on the reconstruction and green transformation of the energy system.
  • In compliance with the requirements of REMIT and the relevant legislation of Ukraine, the Regulator published the draft Procedure for the functioning of insider information platforms. At the same time, the act allows a wholesale market participant not to disclose insider information “regarding the protection of critical energy infrastructure” if it is classified as sensitive.
  • The government allocated 2.22 billion UAH in grant funds received under international agreements to the Ministry of Energy for the purchase and transportation of equipment to restore the transmission system and to install reactive power compensation devices (STATCOM).
  • The Donor Coordination Council of the Energy Efficiency Fund agreed on the concept of a new GreenDIM programme, which will focus on the use of renewables in the residential sector. For the first time since the Fund’s inception, the programme will be extended to private households.
  • The European Investment Bank provided 30.7 million EUR, supported by the EU guarantee, to the Ukrainian cities. 22 million EUR were allocated for the purchase of new environmentally friendly trolleybuses and trams for Kyiv, Lviv and Odesa, the remaining 8.74 million EUR – to support key municipal projects in Lviv, Sumy, and Lutsk.