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

 November 25 – December 1

• On November 28, Russia attacked the energy sector for the 11th time in a year, with a massive strike involving 91 missiles and 97 drones.
• 12 hits at energy infrastructure were recorded, and over 1 million consumers, mostly in western Ukraine, lost electricity. In Zhytomyr, the water supply was temporarily cut off, and in Ternopil, the heat and water supply was cut off.
• 9 reactors at three nuclear power plants reduced electricity production after the attack, and the reactor at the Rivne NPP was disconnected from the grid – the IAEA.
• Due to the damage, emergency blackouts were introduced in Kyiv and 9 regions. The consumption restrictions lasted 54% of hours of the week for households and 58% for industry and business.
• The Base BCM index for December amounted to UAH 5,057.8/MWh (-0.3% compared to November), the Base DAM index – UAH 5,262.5/MWh (-3.5%).
• The government has launched a new state aid payment called “Warm Winter” for low-income families and IDPs with children. Meanwhile, over 2 million Ukrainians have applied for the Winter eSupport program.
• The Government approved a new state ownership policy and four independent members of the Supervisory Board of Ukrenergo.
• The Government reduced from 80% to 60% the share of electricity that companies must import to avoid blackouts.
• The Cabinet of Ministers approved the allocation of the RES support quota for 2025 (330 MW in total), the auction schedule, and forecast quotas for 2026-2029. The regulator has improved the rules for selling electricity by households under net billing and the feed-in tariff.
• This happened following the failure of the third “green” auction for 88 MW for wind.
• The law on tax increases, which provides for advance payments of income tax for gas stations, comes into force.
• The grant program “Support for Energy Resilience of Micro and Small Enterprises in Ukraine” is launched with the support of Norway and Germany. The “Add Energy to Your Business” program, implemented with a loan from Germany, provided more than 100 companies with soft loans worth UAH 300 million.
• The E5P Fund received €32 million in new contributions to implement projects in Ukraine.