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

November 27 – December 3

Summary

• • On November 27, shelling damaged equipment at a thermal power plant in the eastern region, on November 30 – a cogeneration facility in the south of Ukraine, with damage to buildings and equipment. As of December 4, 420 settlements in Ukraine remained without electricity supply due to hostilities and technological disruptions.
  • On December 1, the occupied Zaporizhzhia NPP lost connection to both external power lines. Supply was provided by diesel generators. On December 2, at 07:00, Ukrainian specialists resumed the connection.
  • Electricity consumption was covered by domestic production, as well as by imports from Romania, Slovakia, Poland, Moldova and emergency assistance. Due to increased demand, difficult weather conditions and repairs at generation facilities, the power system experienced deficit in some hours.
  • Following the trades on the bilateral contracts market, the Base index for December continued to slightly decrease – to 3,871.5 UAH/MWh (-2.2% WoW). On the day-ahead market, which was largely in surplus, the Base index increased significantly to 4,506.6 UAH/MWh (+37%). Inter alia, the NEURC’s decision to raise price caps starting from November 30 contributed to this.
  • On November 28, the ENTSO-E Regional Group Continental Europe confirmed Ukrenergo’s full implementation of the Catalog of Measures, which means the completion of synchronization between the United Power System of Ukraine and the European continental grid. The TSOs also decided to increase the maximum volume of electricity imports to Ukraine and Moldova to
    1,700 MW.
  • The Regulator supplemented the Procedure for the Formation, Maintenance and Use of the License Register with new types of activities – electricity distribution by small distribution systems and aggregation.
  • Commercial imports into the Ukrainian gas system have stopped, while commercial exports by non-residents reached 77.5 mcm (actually corresponds to physical volumes). The average daily withdrawal from storages amounted to 83.7 mcm.
  • Naftogaz denied the fake information about the introduction of a “social gas tariff”, according to which the price of 4 UAH/cm was allegedly set for families of military personnel, pensioners, large families and low-income households.
  • The wholesale price of LPG decreased for the first time since the end of September. Among the reasons is an increase in imports on November 20-27 by 80% as compared to the first week of the Polish carriers strike.
  • The government increased by 5.774 billion UAH the amount of loans from the state budget to the Ministry of Energy under the programme “Reconstruction of hydroelectric power plants of Ukrhydroenergo”.
  • The Cabinet of Ministers approved the Concept of the State Target Economic Program for Energy Modernisation of State-Owned or Municipal Heat Producers by 2030. The implementation of planned measures will allow to reduce annual consumption of natural gas by more than 1 bcm and cut annual GHG emissions by about 2 Mt CO2-eq.
  •  The European Commission supported the hydrogen corridor between Ukraine, Slovakia, Czechia, Austria and Germany as one of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) – GTSOU.
  • The United States provided a 25 million USD grant contribution to the Ukraine Energy Support Fund. In total, 132 agreements on the purchase of energy equipment, fuel and materials worth almost 100 million EUR have already been concluded under the Fund framework this year.
  • At the 2023 UN Climate Change Conference (COP28), Ukraine supported the Declaration to Triple Nuclear Energy Capacity by 2050 and joined the Climate Relief, Recovery, and Peace Declaration.
  • The Specialized Anti-Corruption Prosecutor’s Office and the National Anti-Corruption Bureau sent an indictment to the court against Andrii Kobolyev, the ex-CEO of Naftogaz, who is accused of unlawful appropriation of 229 million UAH in bonuses.