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

February 12 – 18

Summary

On February 13, equipment at a TPP in Dnipropetrovsk region (most likely, the Prydniprovska TPP) was damaged, and a large-scale fire broke out, leading to the shutdown of power units, unloading and suspension of the TPP operation.
Systemic shelling continues in areas close to the front line. In general, as of February 18, 365 settlements remained without electricity due to hostilities and technological disruptions.
Another threat to nuclear and radiation safety has arisen at the Zaporizhzhia NPP – so the Acting CEO of Energoatom Petro Kotin. Namely, the 6-year period allowed by the producer for the presence of nuclear fuel in reactors, with the first supplies loaded in 2017, is expiring.
As of December 31, 2023, the recovery and reconstruction needs in the energy sector are estimated at 47.1 billion USD – RDNA3 report. 10.6 billion USD of damage was estimated for the energy and extractives sector, and another 2.1 billion USD in district heating.
Priority recovery measures in 2024 are estimated at 2.7 billion USD, including 1.24 billion USD in the electricity sector, 241 million USD in the gas sector, 435 million USD in the oil sector, as well as 540 million USD for gas purchases and 200 million USD for electricity imports.
Electricity exports increased by 62% to 16.5 GWh, imports decreased by 68% to 11.2 GWh. For the first time in a long period, weekly exports overtook imports by 32%.
The day-ahead market remains in surplus, the ratio between total daily volume of sale and purchase bids ranged from 1.58 to 1.85.
The NEURC published amendments to the methodology for setting price caps on the organized electricity markets, caused by significant fluctuations in the balancing market. Also, Regulator has developed a draft procedure for reporting on transactions related to wholesale energy products.
The government approved the Priority Action Plan for 2024. Among the priorities – implementation of the EU legislation, market coupling, and expanding physical capacities for electricity exports/imports. In the gas sector it is planned to separate accounts of SOEs related to the performance of public service obligations, resolve the issue of examining technical conditions for transmission/distribution system connection, approve the 2050 Hydrogen Strategy, and launch the biomethane registry.
The Minister of Energy Herman Halushchenko confirmed that in 2024 Ukraine plans to start the construction of new power units at the Khmelnytskyi NPP.
The Ministry of Economy released for public discussion the draft National Energy and Climate Plan.
Japan announced the transfer of 1,800 gabions to GTSOU, which will be used for the physical protection of critical gas transmission infrastructure in various regions.
Under the USAID Energy Security Project, 91 cogeneration units were purchased for 32 municipalities and two universities. As of February 15, 57 such installations with a capacity of 50 to 1500 kW have already been delivered.
The United States, through Estonia, will transfer to Ukraine 0.5 million USD forfeited following the breakup of an illegal procurement network, to perform an assessment of damage to the distribution and transmission systems in electricity.