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

December 4 – 10

Summary

• • Russia has shifted to a concerted campaign of strikes against energy infrastructure facilities – the British Ministry of Defence. On the night of December 7, for the first time since September 2023, the enemy launched a massive attack on Kyiv and central Ukraine, launching at least 16 cruise missiles.
  • Also, on December 7, a missile attack was carried out on one of the mines of the SOE Toretskvugillia; one worker was injured, and significant damage to the equipment was recorded. On December 8, the shelling of the TPP in the front-line area caused damage,
    and 2 units went into emergency repair.
  • In general, on December 11, 491 settlements were cut off from the electricity supply due to hostilities and technological violations.
  • Unit No. 4 of the occupied Zaporizhzhya NPP is again in a hot shutdown mode – IAEA.
  • Since December 7, an electricity shortage of 1-2.5% of daily consumption was recorded in the power system. The main reasons are colder weather, increased consumption, and insufficient generating capacity.
  • Commercial electricity imports increased by 2.5 times compared to the previous week and came from Romania, Slovakia, Poland, and Moldova. Ukrenergo involved emergency support, reaching 1.4 GWh (on December 10).
  • The 2050 Ukraine’s energy sector decarbonization report, developed within the US Net Zero World initiative, was presented at COP28. Electrification and energy efficiency measures will play a key role – Minister of Energy Herman Galushchenko.
  • In addition, the preliminary version of the National Energy and Climate Plan for 2025-2030 was presented at COP28.
  • Ukraine proposes to develop a compensation mechanism for damage caused to the environment and climate by the aggressor as a result of armed conflicts. Losses due to additional CO2 emissions are estimated at USD 10 billion – Ministry of Environment.
  • To consider the recommendations of the Energy Community Secretariat, the Regulator has developed an Action Plan to ensure its independence.
  • The Regulator approved a set of tariffs for 2024: for electricity transmission services – UAH 528.57/MWh (+18.7% compared to the average tariff for 2023), for dispatching services – UAH 104.57/MW h (+22.9%), for electricity distribution services.
  •  In the electricity transmission tariff, 36% relates to Ukrenergo’s expenses for implementing the PSO for RES development and compensation for the curtailments of producers under the “green” tariff scheme.
  • The license for the operation of unit No. 1 of the Southern Ukrainian NPP was extended until December 2, 2033.
  • Naftogaz expects that lawsuits against Gazprom regarding the payment for transit will be closed in 2025 – chairman of the board Oleksiy Chernyshov.
  • Chernyshov does not see a violation of the EU Third Energy Package in the current model of gas DSOs management. Within a week, Ternopilgaz joined the Naftogaz group, and three more DSOs are preparing for incorporation.
  • In November, Naftogaz purchased 139.5 million cubic meters of gas from private producers at UEEX.
  • Protests undertaken by carriers are among the main reasons for reducing fuel imports. At the same time, the faster pace of cargo processing allowed Ukrzaliznytsia to saturate the LPG market.
  • The State Recovery Agency will receive 20,000 tons of metal from the USAID Energy Security Project for the construction of the second level of protection structures on energy facilities.
  • The Federal Ministry of Economy and Climate of Germany, the European Investment Bank, and the Ministry of Reconstruction agreed on a EUR 20 million grant for the Renewable Energy Solution Programme (implementation of energy-efficient solutions in public buildings).