Centre for Economic Strategy / Центр економічної стратегії’s Post

What were the developments in the energy sector after russian shellings in Spring? 👉 After the russian attacks on thermal and hydroelectric power plants, shunting power generation in Ukraine suffered significant losses; more than 6 GW of capacity was damaged or destroyed. According to DTEK Executive Director Dmytro Sakharuk, up to 80% of the company's facilities were damaged or destroyed. Due to these losses, NPC UKRENERGO had to impose restrictions on the supply of electricity in Dnipropetrovsk, Donetsk, Zaporizhzhia, Kirovohrad, Kharkiv, Odesa, Khmelnytsky, Poltava and Sumy regions. There were also emergency shutdowns. ☑️The balance in the energy system is maintained by emergency assistance from neighbouring countries and electricity imports. However, during some hours of lower demand, there is an excess of capacity in the system, necessitating restrictions on the operation of renewable energy facilities. ☑️Given the shortage of electricity and an unusually warm spring, many Ukrainian cities have decided to end the heating season ahead of schedule. Some cities have also stopped operating electric transport. ☑️Two weeks before schedule, one of the Khmelnytskyi NPP units was connected to the grid after the repair. However, the lost power generation capacity will not be fully restored during the summer repair campaign, and reconstruction will require significant funds, equipment, and time. Ukrenergo urges enterprises to invest in electricity generation to insure against outages. Read more in #MEMU - Monthly Economic Monitoring of Ukraine https://lnkd.in/dk54TfbX

Great news on Ukraine's energy resilience this winter! Starting December 1, Ukraine capacity to import electricity from Europe will jump by 400 MW, reaching a total of 2100 MW. This is about 25% of the gap created by Russian attacks on the energy infrastructure But, amazingly, since returning to Kyiv two weeks ago, I haven’t experienced any blackouts. It must be that Ukraine has adapted its grid and generation, making it more decentralized and resilient. Not every city is as fortunate as Kyiv and specifics are classified. But the main theme here is that it looks like Ukraine will be able to get through the winter all right. And this is truly wonderful news.

In the upcoming months, the power supply in #Ukraine will remain very unstable, with hours’-long interruptions of electricity supply. This is the danger that I have communicated since October 2022, when the targeted attacks on the power system had started. Since then, #Russians did not give up realization of their cruel planning. Today's publication in the Financial Times – to 90% - the tragic state in which Ukrainian power system finds itself now. As of late 2022, Russians mostly targeted high-voltage transformer substations, and other strategic elements of the grid, trying to disrupt the vital connections. Since Spring 2024, generation assets are being intensively targeted. Majority of our thermal and hydroelectric power plants are now destroyed, which are much more difficult - and expensive - to recover. It is obvious that the next heating season will be very difficult. What needs to be done, as a matter of urgency? - find and supply Ukraine with backup equipment as quickly as possible. For the maneuverable thermal generation, these are spare parts of thermal plants staying idle the countries of the former socialist camp; - develop and install - immediately! - a decentralized energy generation system; - increase the trans-border electricity import capacity; - set up adequate conditions for attracting investment into alternative (renewable) energy sources and storage systems; - ensure access to cheap loans, available both in Ukraine and abroad. I rely on support of our partners. Taken together, these steps will – hopefully - allow to adequately prepare for the upcoming heating season, as far as possible under the current circumstances.

The most challenging period for the energy industry is behind it; the EU is considering increasing Ukraine's imported electricity. According to the Chairman of the Board of Ukrenergo, Volodymyr Kudrytskyi, "We have every reason to expect that the most difficult period of the summer in the energy industry is behind us." He added that the improvement occurred because the heat subsided, and some energy facilities have been repaired. If there is no additional large-scale shelling, the situation should continue to improve. At the same time, the ENTSO-E is considering increasing the interstate crossing limit from Europe to Ukraine, allowing increased importation of electricity, and may initiate the change before the onset of cold weather. The carrying capacity of the Ukrainian import network is much greater than the 1,700 MW currently allowed, and the limiting factor is bottlenecks on the EU side. Moreover, Ukraine and the US will work to strengthen the defense of the energy sector, particularly the transmission facilities around the NPP. Also, to stimulate investment in the energy sector, President Zelenskyy signed laws to abolish VAT and duties on the importation of energy equipment. https://lnkd.in/dyRMRvmp

📄 New Working Paper  Ukraine’s Electricity Sector: Urgency and Resilience in a Time of War Ukraine's electricity system faces severe challenges from persistent Russian attacks, which Moscow has significantly intensified in 2024. As Ukraine prepares for the upcoming winter, it is crucial to develop a resilient next-generation electricity system. In their new working paper, Ken Medlock, senior director of Rice University's Baker Institute for Public Policy Center for Energy Studies, and Gabriel Collins, fellow at the Center for Energy Studies, outline the current challenges, short-term solutions, and long-term strategies for Ukraine's energy sector. Read now > https://lnkd.in/gcD384JY #Ukraine #UkraineEnergy #BakerEnergy 

I am thrilled to announce the publication of our policy brief, "Leapfrogging to a New Energy Future: Economic Policies for Affordable, Secure and Clean Energy in Ukraine". This work is the culmination of my extensive research on renewable energy sector development in Ukraine. I would like to extend my deepest gratitude to Patrick Lenain and the Council on Economic Policies for their invaluable collaboration and expertise. Our paper explores the potential for Ukraine to leapfrog from fossil fuels to renewables, leading to a more sustainable energy future. We discuss the economic policies that can make energy more affordable, secure, and clean in Ukraine, even in the face of current challenges. I invite you all to read our policy brief and share your insights in our ongoing discussion on potential strategies for advancing sustainable energy transformation in Ukraine. https://lnkd.in/dUQkMrEd #Ukraine #EnergyPolicy #SustainableEnergy #RenewableEnergy

Rinat #Akhmetov's DTEK energy holding will not restore the #Kurakhove Thermal Power Plant yet. The others require $350 million, DTEK CEO Dmitriy Sakharuk said on Monday at the Economic Pravda forum. "We have six power plants [in the free territory]. We will not rebuild one of them yet, because it is close to the front, and there is constant shelling. Besides, the only way to supply coal there has been destroyed," #Sakharuk said. #DTEK is one of the largest electricity producers in #Ukraine. The company has eight thermal power plants, two of which – #Zaporizhzhia (#Enerhodar) and #Luhansk (Schastya) – are located in the temporarily occupied territories, and one more – Kurakhove – in the front-line town of Kurakhove. The damage caused is approximately estimated at $250 million, another $100 million is needed to carry out the works, said the head of DTEK. For comparison, the company spent $110 million to recover from the winter bombings of 2022. Last year, this amount was covered by its own funds, now DTEK is considering various ways of attracting funds.For example, obtaining parts and spare parts from European energy facilities. Negotiations are underway with the governments of Germany, Romania, Bulgaria, Greece and Lithuania. According to Sakharuk, this method is the fastest solution for Ukraine, but it will not cover all needs. In addition, the company can use funds from the Ukraine Energy Support Fund and international donors: USAID, JICA, etc. Since March 2024, Russia has carried out three massive strikes on Ukraine's energy system, knocking out up to 7 GW of electricity generation capacity. As a result of the strikes, the Dnipro HPP in Zaporizhzhia, Kharkiv CHPP-5, Zmiyiv and Trypillia TPP of the Centrenergo company, Burshtyn and Ladyzhyn TPP of the DTEK company were destroyed. Energy Minister German Halushchenko said that Ukrainians should stock up on generators, power banks and prepare for any contingencies in the spring and summer. https://lnkd.in/d_W4fj9g

The situation is very complicated. How the Ukrainian energy system is recovering from Russian strikes In the last weeks of March, the Russian Federation carried out a series of massive attacks on Ukrainian energy facilities. In particular, they hit the Dnipro Hydroelectric Power Station, Ladyzhinskaya and Zmiyevskaya TPPs. This led to serious destruction, and as a result, to restrictions on energy supply in various regions of the country. The most affected power systems are Kharkiv, Odessa, Kryvyi Rih and Khmelnitsky. The blows were very significant and quite a lot of generating capacities were broken. We lost more than 10% of the generation that was available to us on March 20. And this is something that most likely cannot be restored quickly and there is a big risk that it will not be possible to restore most of the capacity even before the start of the next heating season. They urged Ukrainians to prepare for blackouts and consumption restrictions in the summer season.

The situation is very complicated. How the Ukrainian energy system is recovering from Russian strikes In the last weeks of March, the Russian Federation carried out a series of massive attacks on Ukrainian energy facilities. In particular, they hit the Dnipro Hydroelectric Power Station, Ladyzhinskaya and Zmiyevskaya TPPs. This led to serious destruction, and as a result, to restrictions on energy supply in various regions of the country. The most affected power systems are Kharkiv, Odessa, Kryvyi Rih and Khmelnitsky. The blows were very significant and quite a lot of generating capacities were broken. We lost more than 10% of the generation that was available to us on March 20. And this is something that most likely cannot be restored quickly and there is a big risk that it will not be possible to restore most of the capacity even before the start of the next heating season. They urged Ukrainians to prepare for blackouts and consumption restrictions in the summer season.

Ukraine needs at least $1.5 billion this year to rebuild its damaged power plants According to chief executive of Ukrenergo company Vladimir Kudritsky, nearly half of Ukraine’s power generation capacities has been either damaged or destroyed MOSCOW, June 7/ This year, Ukraine will need at least $1.5 billion in 2024 to rebuild its damaged power plants, chief executive of Ukrenergo company Vladimir Kudritsky said. "In fact, estimates vary. Speaking about 2024, I think the figure may be $1.5 billion or even more, and this is not an overestimation. I’m talking about the existing power generation capacities that need to be restored," he said in a video, posted on a YouTube channel of the Ukrainskaya Pravda publisher. According to Kudritsky, nearly half of Ukraine’s power generation capacities has been either damaged or destroyed. According to Ukrainian Energy Minister German Galushchenko, the country is in the midst of an energy crisis. In his turn, Mikhail Podolyak, adviser to the head of the Ukrainian presidential office, specified that the Kanevskaya HPP, the Dnieper Hydroelectric Station and the Zmiyevskaya TPP had been damaged. The Energy Ministry reported the complete destruction of the Tripolskaya TPP, the largest power-generating facility in the Kiev Region. According to Ukrainian Foreign Minister Dmitry Kuleba, over half of the country's entire energy system has been damaged. The authorities regularly urge citizens to conserve energy. Ukrenergo has recently been importing record amounts of electricity from Europe. #business #finance #financialservices