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

November 6 – 12

Summary

• • The russian federation continues attacks on electricity and gas infrastructure, which are becoming more systematic and massive and lead to consumers’ disconnections.
  • According to the SNRIU Board’s assessment, the number of operational issues that happened at the NPPs of Ukraine in 2022, incl. those caused by russian aggression, has more than doubled compared to the previous years and is the maximum in the last ten years.
  • The electricity consumption was covered by domestic production and imports from Slovakia, Romania, and Moldova during peak hours. Exports were also carried out at night and day hours. To balance the power system and avoid curtailments of RES generation, emergency assistance was activated from Poland by purchasing excessive electricity from the UPS of Ukraine.
  • The President of Ukraine has put into effect the Decision of the National Security and Defence Council of Ukraine “On Additional Measures to Strengthen the Resilience of the Energy System and Prepare the National Economy for the Autumn-Winter Period of
    2023/24”, which envisages a set of measures to settle debts on energy markets, develop alternative energy and distributed generation, energy efficiency, limiting the export of Ukrainian gas and increasing imports from non-traditional directions, etc.
  • The Third Rapid Damage and Recovery Needs Assessment (RDNA3) has been launched, which will show the level of damage as of January 1, 2024, the cost of recovery based on the “build-back-better” principle, recovery priorities through 2027, and necessary reforms.
  • The government approved the agreement, which allows attracting EUR 250 million from the EU for quick recovery, particularly for the reconstruction of bridges, railways, schools, kindergartens, hospitals, and residential buildings, and support for the Ukrainian agricultural sector.
  • A large-scale generation facilities repair campaign continued – one TPP unit returned to operation; 3 units were under short-term repair, two units were placed under emergency repair, and another three units were placed under short-term repair.
  • Due to favorable weather and reduced consumption, the underground gas storage facilities have accumulated over 16 bcm of gas, while coal and fuel oil stocks are deemed sufficient for the uninterrupted operation of the thermal power plants.
  • In the Report assessing Ukraine’s progress in compliance with EU membership criteria, the European Commission noted Ukraine’s progress in the development of the energy sector and underlined the necessity to continue harmonization with EU legislation regarding the transparency of the wholesale energy market, renewable energy, energy efficiency, the GTS operator activity and the certification of gas storage facilities.
  • During the working visit of the Ukrainian Ministry of Energy delegation to the USA, a large number of meetings were held with representatives of the public authorities and businesses on the issues of attracting American aid for surviving the coming winter season, restoration and development of the energy sector of Ukraine, in particular nuclear and renewable energy.
  • The Regulator increased the price caps on the electricity day-ahead, intraday, and balancing market, which will become effective from November 30.
  • A draft law has been registered in the Verkhovna Rada, which proposes to include oil and gas condensate in the excise group of commodities with a zero excise rate – for better surveillance over the circulation of those commodities on the market and to prevent abuses.
  • Ukrgazvydobuvannya JSC commissioned two wells with a daily output of 500,000 cubic meters.
  • Energoatom and Holtec International plan to build a plant in Ukraine to produce containers for storing spent nuclear fuel.
  • The Ministry of Energy handed over to Ukrainian Distribution Networks JSC the shares of five DSOs: Zaporizhzhyaoblenergo, Ternopiloblenergo, Cherkasyoblenergo, Kharkivoblenergo and Sumyoblenergo.