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 temporarily published in a limited format – as a summary of the main events in the sector.

At the same time, DiXi Group NGO has prepared a survey for 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.

Survey in English (for international readers)

May 4 – 5

• On 6 May, a massive drone strike in the city of Zaporizhzhia damaged a number of power lines, including high-voltage ones, leaving 42,912 household and non-household customers without electricity. The power supply was almost completely restored within two hours.
• Ukraine will create a National Programme for the Adaptation of Ukrainian Legislation to the Law of the European Union (EU acquis), which will include not only the formal transposition of EU acts, but also institutional changes necessary for the actual implementation of European legislation.
• In January-April 2025, representatives of the State Energy Supervision Inspectorate of Ukraine examined 331 damaged power grids or their components at 16 distribution system operators.
• As of 8 May, 5 out of 9 power units at Khmelnytsky, Rivne and South Ukrainian NPPs were in operation and generating electricity, while the other 4 units were at various stages of shutdown for scheduled maintenance and refuelling. Two of them are expected to return to operation in the near future.
• Commercial electricity exports fell by 2.7 times to 8.6 GWh over the week, while electricity imports increased by 1.6 times to 76.3 GWh.
• The monthly Base BCM (bilateral contracts market) index for May remained at 3,886.9 UAH/MWh (-18.7% compared to April).
• Taking into account the scheduled outage of one more NPP unit, the average hourly price of electricity on the day-ahead market for the week (DAM Base index) increased to 5,627.4 UAH/MWh (+22%). The total volume of electricity sold on the Ukrainian DAM increased to 502.2 GWh (+5.9%).
• 0.6 GWh of guarantees of origin of electricity from wind generation were sold on the Market Operator platform at a fixed price of UAH 11.99 per MWh.
• Draft Law No. 13258 has been registered in the Verkhovna Rada, which expands the list of activities that can be carried out under energy service agreements, with projects for the development of renewable energy, distributed generation and energy storage facilities.
• During the reporting week (4–10 May), physical gas imports from Hungary totalled 67.7 mcm (+23.4% week–on–week), from Poland – 32.8 mcm (+29.2%), and Moldova – 0.9 mcm (+31.6%).
• As of 10 May, 1.26 bcm of gas was accumulated in Ukrainian underground gas storage facilities (UGSs), or 4.17% of their total working volume. During the reporting week (4–10 May), the total volume of injections into storages amounted to 215.8 mcm (+0.6% compared to the previous week).
• The NEURC issued a resolution approving the Procedure for Aggregation of Inside Information in the Wholesale Energy Market and Its Disclosure, which, starting from 1 June and for the entire period of martial law (and within a month after its termination), establishes which data on the unavailability of capacities in the electricity and natural gas markets are considered closed. At the same time, the Procedure stipulates that the NEURC must collect relevant data from inside information platforms, aggregate and publish it in the “Integrity and Transparency/REMIT” section of its website.
• According to the press centre of Naftogaz Group, the drilling division of Ukrgasvydobuvannya drilled a record 107,136 m in the first quarter of 2025, which is almost twice as much as in the same period last year.
• MHP has exported liquefied biomethane (bio–LNG) for the first time in Ukraine: the Vinnytsia poultry farm shipped about 18.7 tonnes of the product, made from poultry manure and other agricultural waste and certified according to the EU ISCC standard. The fuel was transported by tanker truck to Germany and purchased by Vitol.
• The Ministry of Communities and Territorial Development of Ukraine hosted a meeting with a delegation from the European Union and its Member States to present the new EU4Reconstruction support programme. The programme is part of the Team Europe initiative and aims to strengthen Ukraine’s institutional capacity in public investment, infrastructure rehabilitation and regional development in line with EU standards. The programme will run until 2028 and will form the basis for long–term cooperation between Ukraine and the EU in the field of transparent, inclusive and effective recovery.
• The French company GE Vernova and Zaporizhzhyaoblenergo signed a EUR 13 million agreement for the production and supply of two mobile substations that will strengthen the region’s energy resilience. This contract is the last (nineteenth) under the intergovernmental Grant Agreement between Ukraine and France signed in June 2024 for a total of EUR 200 million.