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

October 16 – 22

Summary

• • The russian federation conducts regular shelling of energy infrastructure and generation facilities. The enemy committed a missile attack on a coal mine in the Donetsk region and began barbaric targeted fire on repair crews. In addition, rf carried out a cyber attack on the “Ukrainian Energy Exchange” online resources.
  • The occupiers increased the number of reactors of the Zaporizhzhya NPP in a “hot” shutdown state to two units and launched mobile diesel boilers (allegedly to provide heat to Enerhodar) – IAEA.
  • The President approved the decision of the NSDC “On the organization of protection and ensuring the safety of critical infrastructure and energy facilities of Ukraine in the conditions of military operations”, according to which the government, in a short time, should provide critical infrastructure facilities with backup power sources and sufficient fuel stock; to approve the action plan for restoration of critical infrastructure facilities; to develop the Energy Sustainability Plan of Ukraine along with respective financing sources, etc.
  • Ukraine is completing scheduled repairs at energy facilities – 1.5 GW of generation capacity was added to the energy system out of the 1.7 GW planned; Ukraine has accumulated 15.8 bcm of gas in storage facilities out of the planned 16.5 bcm – Prime Minister Denys Shmyhal.
  • The Operator of Ukraine LLC declared the completion of preparations for the heating season – repair works on gas pipelines, compressors, and gas distribution stations are 100% completed. The operator simulated possible crisis situations and considered their results in preparation for winter.
  • Ukrnafta announced plans to build 9 new wells by the end of 2023, and 30 wells are planned to be drilled next year.
  • The Ministry of Recovery has approved guidelines regarding the prioritization of projects to eliminate the consequences of the military aggression of the rf. Also, the Ministry announced a competition for selecting ten communities to support the development of recovery plans within the “Early Recovery of Ukraine” project.
  • Legal entities (condominiums, medical, educational, and cultural institutions) ordered and exchanged over 1 million LED bulbs as part of the Government and EU program for exchanging conventional bulbs for LED bulbs.
  • Domestic production and minor imports from Slovakia and Moldova covered electricity consumption in Ukraine.
  • Ukraine switched to European rules for accessing cross-border interconnectors by
    electricity exporters and importers. Ukrenergo signed an agreement to join the panEuropean auction platform JAO. However, price caps on the wholesale market remain an obstacle to the import of electricity in certain hours.
  • ENTSO-E is expected to decide in November on increasing the cross-border capacity to import electricity from EU countries to Ukraine – Kadri Simson.
  • The Regulator approved the Temporary procedure for acquiring auxiliary services to ensure frequency and active power regulation in the IPS of Ukraine (providing replacement reserves (tertiary regulation)) and approved the Licensing conditions
    for the aggregation activity on the electricity market.
  • The Energy Community Secretariat published the Report on the NEURC operation “Governance and Independence of the National Energy Regulatory Authority of Ukraine”, which specified the need for further legislative reforms and ensuring the
    Regulator’s independence.
  • International financial institutions have agreed on a joint approach to procurement in Ukraine, applying the Prozorro system for small tenders (up to EUR 130,000 for goods and EUR 5 million for services). The MoU includes intentions to use the Digital Restoration EcoSystem for Accountable Management (DREAM) to jointly oversee recovery projects.