Russian War Against Ukraine: Energy Dimension | DiXi Group Alert – weekly review
March 27 – April 2
Summary
— Damage to infrastructure facilities was reported in the cities of Vovchansk (Kharkiv region), Zaporizhzhia and Orikhiv (Zaporizhzhia region), Avdiivka (Donetsk region), and Beryslav (Kherson region).
— On March 30, an enemy drone attack in the town of Donets (Kharkiv region) destroyed facilities of Ukrgasvydobuvannia. On April 2, the Kurakhove TPP was once again damaged by shelling, which caused suspension of electricity production; power supply to three 110 kV grids was disrupted.
— Ukraine’s subsoil has suffered 10 trillion UAH in damage – so the Ministry of Environmental Protection and Natural Resources.
— The President Volodymyr Zelenskyi met with the IAEA Director General Rafael Grossi, the parties discussed the criticality of the situation at Zaporizhzhia NPP. Grossi stressed the IAEA is now focusing not on creating a safe zone around the plant, but on the principle that the NPP cannot be attacked or used for an attack.
— Ukrenergo and ENTSO-E expanded technical capabilities for electricity trading: for imports – from 700 to 850 MW (any time of the day), for export – no change (at 400 MW). Also, Ukrenergo signed an agreement on multilateral emergency assistance with 15 system operators of ENTSO-E.
— The Ministry of Energy announced a targeted program for supporting RES distributed generation. In the first stage (2022-2025), it is planned to support installing 200,000 small RES facilities with storage, in the second stage (2026-2030) – up to 1 million such facilities. Net billing mechanism will be the legal and economic basis.
— The government is preparing a draft law on the legal regime of the de-occupied territories – so the Minister of Reintegration Iryna Vereshchuk.
— A group of NGOs called on the government to cancel the decision on automated control systems (ACS) for pollutants emission. The document obliges enterprises to install ACS only on new equipment, i.e. all existing industrial facilities are allowed to avoid emissions monitoring “at the pipe”.
— Menawhile, in 2022, Ukraine met the targets of the National Emissions Reduction Plan for Large Combustion Plants (NERP) – so the Ministry of Energy.
— The Cabinet of Ministers extended the public service obligations (PSO) regime for the discounted gas supply to district heating companies and budget institutions for one more month – until April 30.
— The Executive Board of the International Monetary Fund approved a new four-year Extended Fund Facility (EFF) for Ukraine for 15.6 billion USD. In the energy sector, the IMF expects ambitious reforms to increase competition, improve market mechanisms, and reduce quasi-fiscal risks.
