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

December 23 – January 7

Summary

• • On December 29, massive shelling damaged the high–voltage lines and equipment of the TPP in the Donetsk region. On January 2, nearly 260,000 consumers in several districts in Kyiv were temporarily disconnected. During the December 29 attack, cruise missiles and drones flew near or over the Rivne and South Ukrainian NPPs.
  • Yet, the consequences of the strikes have not yet significantly affected the operation of the power system. As of January 8, 463 settlements remained without power due to hostilities and technological violations.
  • IAEA experts are still unable to access to all parts of the occupied Zaporizhzhia NPP site. The occupation administration also did not provide the 2024 maintenance schedule for the ZNPP – SNRIU.
  • During the season’s holiday period, trade volume on the organized electricity markets decreased due to consumption decline; a significant surplus was recorded on the DAM. To balance the system, surpluses were transferred to Poland as emergency support, and minor exports also took place.
  • At the same time, according to the results of operational monitoring, there are signs of manipulation on the DAM. The Regulator is preparing a decision on the initiation of investigations.
  • The Regulator approved the Procedure for forming and maintaining a register of electricity facilities and electrical installations of consumers (including active ones) using RES and the Procedure for selling and metering electricity produced by active consumers and providing corresponding settlements.
  • The Regulator also published a draft Law to implement the EU legislative package Clean Energy for all Europeans.
  • Compared to 2022, in 2023, the transit of Russian gas decreased by 28.4% to 14.65 bcm. According to the media, gas production in Ukraine increased by 0.9% to 18.7 bcm; in particular, Ukrgazvydobuvannya JSC increased it by 5%, and private companies reduced it by 14%.
  • During 2023, over 2 GW of generation capacity damaged last winter will be restored – Minister of Energy Herman Galushchenko. Meanwhile, the Ministry of Reconstruction, together with USAID ESP, is implementing a program to deploy small and medium power cogeneration: one of those plants was launched in Starokostyantyv, Khmelnytskyi region.
  • The government approved the 2050 Strategy for Thermal Modernization of Buildings in Ukraine, extended until April 15 the PSO scheme for the preferential gas supply to heat producers and public institutions, and approved zero quotas for exporting domestic natural gas and coal.
  • The government created NNEGC Energoatom JSC, completing its corporatization, and elected one more state member of the supervisory board of Naftogaz (Kostyantyn Mar’evich). The State Energy Inspectorate was authorized to supervise the gas sector.
  • The Japanese government will hand over 7 high–voltage autotransformers and 5 gas turbines to Ukraine, ensuring an uninterrupted energy supply to over 6 million Ukrainians. In particular, autotransformers were purchased with EBRD funds and will be delivered due to Japan and UNDP’s efforts.