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

Dear subscribers! Due to the suspension of funding for all US foreign assistance programmes for 90 days, the weekly review ‘Russian War Against Ukraine: Energy Dimension’, which used to be prepared within the framework of the USAID Energy Sector Transparency project, will be published in a limited format – as a summary of the main events in the sector. Next week, DiXi Group plans to send a survey to the subscribers to receive feedback on the priority thematic sections of the review that should be continued to be covered. This will allow the team to match the interests of readers with available resources and develop an optimal format for the weekly review during the period of suspension of USAID support. We would like to thank our audience for their continued interest in the weekly review ‘Russia’s War on Ukraine: The Energy Dimension’. We would also like to assure you that we will continue to look for opportunities to develop this information and analytical product in order to meet the interest of our audience in a timely and high-quality manner.

February 3 – 9

Last week, Russia continued shelling electricity generation and transmission facilities in various regions of Ukraine, forcing the transmission system operator to introduce emergency power outages. On February 3, emergency blackouts were introduced in 9 regions, and on February 4, 6 and 7 – in 8 regions.
Over six days of the week (February 3-7 and 9), power supply was restored to 66,213 consumers – the Ministry of Energy.
IAEA Director General Rafael Grossi made his eleventh visit to Ukraine since the start of Russia’s full-scale invasion. He visited one of Ukrenergo’s damaged substations and emphasized that attacks on infrastructure critical to the operation of nuclear power plants could lead to a nuclear accident.
The 750 kV power line supplying Zaporizhzhya NPP, which was disconnected on January 29, was reconnected on February 1. At the South Ukraine NPP, a 750 kV power line that was also disconnected on 29 January due to military activities remains unavailable.
The Government approved the Concept of the State Program for the Modernization of Drainage and Wastewater Treatment Enterprises until 2034. The program envisages the construction of modern wastewater treatment facilities, an increase in the share of Ukrainians with access to drainage to 70% and the creation of more than 100,000 jobs.
The Cabinet of Ministers also approved an action plan for 2025–2027 to implement the Strategy for Environmental Security and Climate Change Adaptation. It provides for the development of adaptation plans for key sectors of the economy (including energy) and the expansion of the nature reserve fund.
Commercial electricity exports from Ukraine fell by 47% to 18.5 GWh, while imports doubled to 43.3 GWh.
The monthly Base DAM Index (bilateral contracts market) for February remained at 5,413.8 UAH/MWh (+1.6% compared to January).
The Base DAM Index decreased to 5,588.1 UAH/MWh (–0.3% WoW), while the total volume of electricity sales on the day–ahead market increased to 735.5 GWh (+24% WoW).
President Zelenskyy signed Law 4213–IX, which clarifies the provisions of legislation in the field of energy and heat supply during martial law. The document stimulates the development of small distributed generation, introduces a cable pooling mechanism for hybrid power plants and increases the support quota for RES electricity producers. The law also provides for the creation of geoinformation systems for energy grids and regulates the use of Ukrenergo’s saved tariff funds to pay off debts in the balancing market and under the feed–in tariff.
The first company launched a 20 MW energy storage facility ahead of schedule to provide ancillary services to Ukrenergo, which were purchased last year at long–term auctions.
Ukrenergo’s Supervisory Board announced a competitive selection for the position of the company’s Chairman of the Management Board. The newly elected Chairman will be responsible for ensuring the restoration and modernization of the energy infrastructure, improving the company’s financial stability and increasing the capacity of interconnectors with the EU.
In 2024, Energoatom allocated UAH 116.3 billion (58% of net income) for PSO payments, maintaining fixed electricity prices for households. At the same time, the company generated 53,000 GWh of electricity (+2% compared to 2023).
Ukraine is to import at least 1 bcm of natural gas by the end of the year – Energy Minister Herman Halushchenko.
As of February 8, 2.89 bcm of gas was accumulated in Ukrainian underground storages (9.6% of the total working volume), withdrawals amounting to 486 mcm (+59.6% compared to the previous week).
In February 2025, Ukraine carried out the first pipeline supply of biomethane to the EU in the amount of 67 tcm. The export was carried out by Ukrainian producer Vitagro Energy LLC using the national gas transmission system.
Italy signed an agreement with the UNEP to allocate more than EUR 2 million for a project to strengthen the energy resilience of Ukrainian cities. The project envisages the development of renewable energy, energy efficiency, and training programs with the involvement of Italian and Ukrainian experts.