13.05.2024
Russian War Against Ukraine: Energy Dimension | DiXi Group Alert – weekly review
May 6 – 12
- On the night of May 8, Russia carried out another massive strike, having fired over 50 missiles and 20 drones at the energy infrastructure of 6 regions.
- Electricity generation and transmission facilities were damaged, including 3 TPPs of DTEK Energy, 2 HPPs of Ukrhydroenergo (out of operation), and a transmission facility of Ukrenergo in the central region. Strike on a gas storage in the Lviv region was also reported.
- As of May 13, 412 settlements remained offline due to hostilities and technological disruptions. Hourly outages continued to apply in the Kharkiv region and for industrial consumers in Kryvyi Rih, Dnipropetrovsk region.
- More than 800 district heating facilities were destroyed or damaged, up to 8 GW of power generation was lost; about USD 1 billion is needed for restoration – so the Prime Minister Denys Shmyhal.
- A significant deficit emerged in the power system at almost all hours of the day, Ukrenergo applied all possible measures: imports (73.2 GWh, +51% WoW), emergency assistance (1% to 3% of daily consumption), as well as limiting consumption by industrial consumers (over 30 hours in 5 days).
- Day-ahead market changed its status from surplus to deficit. Prices were close (with a deviation under 1%) or at the level of upper price caps for 44% of the settlement periods.
- The Cabinet of Ministers decided to allocate UAH 7.168 billion for equipment to restore the high-voltage grid and to better synchronize the power systems of Ukraine and the EU. A Headquarters for Preparation to the 2024/2025 Autumn-Winter Period was set.
- Also, the government changed the rules for granting benefits and housing subsidies to take into account the energy crisis in Kharkiv and settlements of the Kharkiv region.
- The Regulator simplified the procedure for grid connection of generating facilities (gas turbine, gas piston, cogeneration units, etc.). In addition, the NEURC approved amendments to a number of license conditions in the electricity and natural gas markets regarding implementation of REMIT.
- Naftogaz is ready to provide the infrastructure of its enterprises (in particular, CHPs) for the prompt connection of gas-fired power plants, as well as to provide them with the necessary volumes of gas – so the CEO Oleksii Chernyshov.
- The Supervisory Board of the Energy Efficiency Fund approved a new program, GreenDIM. Homeowners associations and housing cooperatives can apply for a grant covering 70% of the equipment cost (heat pumps, solar installations), audit and certification of the energy performance of a building.
- The net consolidated profit of Naftogaz Group in 2023 amounted to UAH 23.1 billion, while in 2022 it reported a loss of UAH 79.1 billion. 95% of profits shall be paid as dividends to the government.
- Ukrnafta and the Asset Recovery and Management Agency applied to the Antimonopoly Committee of Ukraine to obtain a concentration permit in order to start full-fledged management of the arrested Tatneft assets.
- The United Kingdom has announced an additional contribution of GBP 20 million (EUR 23 million) to the Ukraine Energy Support Fund. Media reported that Belgium has allocated EUR 9 million to restore energy infrastructure around Kharkiv. Ukrenergo and KfW signed a grant agreement of EUR 45 million to finance recovery of substations and their protection.
