Russian War Against Ukraine: Energy Dimension | DiXi Group Alert – weekly review
July 10 – 16
— The IAEA inspected the Zaporizhzhia NPP; however, the occupiers did not provide access to the roofs of power units #3 and #4. According to the State Nuclear Regulatory Inspectorate, the occupiers plan to set the 4th power unit into a hot shutdown state, which will provoke new risks for nuclear and radiation safety due to the long-term inactivity of the unit’s equipment, the lack of proper maintenance and repair, and the insufficient number of qualified personnel at the ZNPP.
— American Nuclear Society considers the threat of a large-scale release of radiological material speculative. As of 09:00 on July 17, the water level in the cooling pond of the ZNPP is 16.43 m, while the situation remains stable.
— To ensure the stability of the power system, Ukraine continues electricity imports from neighboring countries (in particular, Slovakia, Poland, and Moldova), especially during the evening peak consumption, while electricity exporting is stopped.
— The Regulator approved the Procedure for the distribution of revenues from capacity allocation and congestion management between the transmission system operators of Ukraine (Ukrenergo) and Slovakia (SEPS), which would open the potential recovery of electricity exports through the cross-border interconnector between Ukraine and Slovakia.
— Ukraine’s Minister of Energy, German Galushchenko, said that Ukraine expects continuous Russian attacks on energy facilities during the following winter. Thus, the need for critical energy equipment, especially high-voltage, and systems for ensuring the decentralization
of power generation remains highly relevant.
— The financial program for Ukraine from the EU – Ukraine Facility – is aimed at transition to a green, digital, and inclusive economy and will include three main pillars: financial support via grants and loans; a special investment structure for the mobilization of public and private investments for ensuring recovery in Ukraine; technical assistance (expert support for reforms, municipalities, civil society, etc.).
— In the first reading, the Parliament approved the draft law on Amendments to Certain Legislative Acts on Stimulating the Development of the Oil and Gas Extractive Industry. The document aims to improve the regulation of concluding the production sharing agreements
(PSAs) by eliminating legislative gaps and barriers and increasing the industry’s transparency.
— The Cabinet of Ministers approved the action plan for implementing Ukraine’s climate policy within the Global Methane Pledge, global initiative for reducing methane emissions. Among the tasks are reduction of methane leaks and emissions in the oil and gas sector; approving
requirements for TSO and DSOs regarding regular practices for detecting and eliminating leaks from gas networks; development of biomethane production from agricultural waste; designing technical regulations for natural gas and a draft law on the use of biomethane as
a motor fuel; implementation of coal deposit methane capture and utilization technologies.
— Parliament approved in the first reading the revised draft law on the optimization of the ownership structure of Ukraine’s gas transportation system operator, which provides for the corporate reform of GTS Operator of Ukraine LLC and the transition to the model of a single company in gas transportation system management.
— The Cabinet of Ministers approved the annual report of Naftogaz for 2022, including separate and consolidated financial statements and the independent auditor’s conclusions. At the same time, Naftogaz does not plan to increase household gas prices. The fixed tariff
will remain at UAH 7.96 per cubic meter.
— As part of the e-Recovery program, Ukrainians submitted about 25,000 applications to repair damaged housing, while over 1,400 applicants have already received financial assistance.