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

December 2 – 8

• Drone attacks damaged energy facilities in various regions. Electricity consumption restrictions for households lasted 56% of the week and for businesses 64%.
• The Base DAM index increased to 5,937.1 UAH/MWh (+12.8%), while electricity imports grew by 24%.
• The situation with heat supply in Kherson and Kryvyi Rih remains difficult, and repair teams from different regions have been deployed.
• Over 5 million applications have been submitted for the Winter eSupport program (a UAH 1,000 allowance).
• Meanwhile, funding for the liquidation of the aftermath of the Kakhovka hydropower plant explosion was cut threefold to UAH 55.4 million.
• The government has approved a schedule of “green” auctions for 2025 with a support quota of 330 MW.
• The regulator plans to approve the electricity transmission tariff at UAH 678.58/MWh (+28% by 2024).
• The NEURC also temporarily changed the mechanism for determining prices in the balancing market until March 1, 2025.
• OGTSU and Gaz–System agreed on guaranteed capacities for gas imports from Poland (5.15 million cubic meters per day), and the guaranteed capacity from Slovakia was increased (up to 42 million cubic meters per day).
• Producers and importers of oil and oil products have been granted a 1–year deferral of liability for minimum stocks.
• The EBRD has approved an investment of EUR 1.3+ billion. A loan agreement was signed with Ukrnafta for EUR 80 million (for the construction of ~100 MW of gas–fired generation), and the project will be co–financed by grants from the Netherlands and the United States. Loans will also be provided to Ukrzaliznytsia (EUR 300 million for the purchase of electric locomotives, EUR 180 million for the construction of up to 270 MW of gas–fired generation)  and Galnaftogaz (EUR 62 million for the construction of a 147 MW wind farm).
• Denmark will provide EUR 6 million to the Energy Support Fund for Ukraine.
• Donors have supplied 486 cogeneration units and 296 modular boiler houses; over 50% of them are already in operation, says Deputy Prime Minister Oleksiy Kuleba.