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

November 20 – 26

Summary

• • As of November 27, due to hostilities and other related reasons, 530 settlements were cut off electricity supply – Ukrenergo.
  • In particular, more than 42,000 consumers remained disconnected in the city of Kherson.
  • As a result of shelling, the mine of Selydivvugillia was seriously damaged, one worker was killed. A 330 kV overhead line was damaged due to falling debris in the Vinnytsia region, and a blackout was recorded as a result of a massive UAVs attack in Kyiv. The enemy also fired at a power generation facility in the south of Ukraine, the equipment was damaged.
  • After the incident at unit 5 of the Zaporizhzhia NPP, where reagents leaked from the first circuit of the reactor into the second one, the occupiers decided to transfer the unit to a “cold” shutdown mode – Energoatom.
  • On November 26, ZNPP lost its connection to the main external power line, forcing it to rely on backup sources to cool down reactors.
  • On November 22 and 23, a deficit was recorded in the power system. The main reasons are the increase in consumption due to the cold weather, the increased rate of accidents at TPP units and insufficient volumes of electricity imports from the EU. Ukrenergo was forced to activate emergency assistance. The State Inspectorate for Energy Supervision will conduct an inspection of the condition of thermal generation units.
  • According to the results of trading on the bilateral contracts market, the monthly index for November remained at 3,859.6 UAH/MWh, the index for December decreased slightly to 3,958.6 UAH/MWh (-3.5%). The day-ahead market was in surplus, there were no deficit hours on DAM.
  • The debt of Guaranteed Buyer for ensuring the availability of electricity for households amounts to over 21.3 billion UAH. 
  • The Regulator published draft amendments to the Transmission System Code for the purpose of implementing Regulations (EU) 2017/1485 and 2017/2196 in terms of determining the features of system operation and the procedure for declaring an emergency.
  • Non-residents began to more actively export gas withdrawn from storage facilities. The volumes of gas transported on the gas system exit in the “customs warehouse” regime amounted to 98.6 mcm during the week. In general, the average daily volume of withdrawals was 65.5 mcm.
  • The growth of retail prices for liquefied petroleum gas continues: on November 20-24, it increased by 0.70 UAH/l to 36.07 UAH/l. In almost all regions of Ukraine, there are supply interruptions due to blocked import resource by the strikes of Polish
    carriers.
  • The Verkhovna Rada adopted the law “On minimum stocks of crude and petroleum products”, which should ensure continuous supply to the market in the event of crisis and the implementation of other requirements of the Council Directive 2009/119/EC.
  • Ukrnafta plans to double production over the next 5-7 years – CEO Serhii Koretskyi.
  • Under the Ministry of Energy coordination, in 2023, Ukraine received 496 shipments of humanitarian aid for the energy sector with a total weight of 5,938 tons. About 120 companies, government institutions and organizations from 34 countries became donors.
  • The Agreement between Ukraine and the EU on participation in the Connecting Europe Facility was ratified.
  • The Ministry of Communities, Territories and Infrastructure Development announced the third selection of projects under the Ukraine Recovery Program with the EIB funds.
  • Naftogaz signed a loan agreement with the EBRD in the amount of 200 million EUR, which will be directed to form strategic gas reserves.