Business news from Ukraine

Business news from Ukraine

Kakhovska HPP blast has not affected operation of energy system – Ministry of Energy and Ukrenergo

The blowing up of the Kakhovskaya HPP (Dnipropetrovsk Region) has not directly affected the situation in the country’s energy system and there is no threat to power supply stability, the Ministry of Energy and NEC Ukrenergo said on Tuesday. As of June 6, there was enough electricity generated to cover consumers’ needs.
“Experts of the Ministry of Energy and Ukrhydroenergo are studying the potential impact of the disaster on the volume of hydro generation. The actual level of electricity generated so far corresponds to the planned one,” the ministry noted, in particular.
It also confirmed the information about the absence of a direct threat to the Zaporizhzhya NPP,
“The situation at ZNPP. Despite the gradual decrease in the water level, there is no direct threat to the occupied plant. Energoatom experts are constantly monitoring the situation,” the ministry stated.
At the same time there is a risk of flooding of power facilities in the Kherson region, in particular, the Kherson CHPP, because of the dam detonation. Because of the underflooding in Kherson almost 12 thousand consumers in the area of Ostrov are already de-energized, there may be problems with water supply. Preventive anti-crisis measures are being prepared.
In turn, Ukrenergo reminded that from the first days of aggression, the Kakhovka hydroelectric power plant was occupied and mined by the Russians. Technological connection with it has been lost, the output of power to the controlled territory of Ukraine from the plant was not made.
“Tonight the aggressor country committed another act of terrorism at the civilian infrastructure facility, which is a tragedy for our fellow citizens and a large-scale environmental catastrophe. “Ukrenergo will further report on the impact of the consequences of the disaster on the state of the energy system,” the NEC said.
In addition, according to the ministry and Ukrenergo, overnight Russian shelling damaged regional power grids in Kherson, Kharkiv, Sumy and Donetsk regions. In the Kiev region, there is damage to oblenergo networks due to the falling debris of a hostile target shot down by Ukrainian air defenses.
“Due to previous shelling, some consumers in Zaporizhzhia, Kharkiv, Kherson and Chernihiv regions also remain without power. Repair crews are working where the security situation allows it,” the Ministry of Energy added.
In addition, according to Ukrenergo, in the morning and partially in the afternoon of June 6, electricity is exported to Poland. During the daytime, there are imports from Slovakia. There are no imports or exports in the evening.
According to the Ministry of Energy, commercial imports of electricity on June 5 amounted to 1,031 MWh, while exports to Poland amounted to 1,800 MWh.

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Ukrainian nuclear power plants operate with limitations due to unpreparedness of energy system to receive all generated energy

As of Sunday, all nine nuclear power units in the government-controlled territory of Ukraine were operating, but the work of several of them was being limited due to the unreadiness of the energy system to accept all the energy produced from them, the nuclear power plant operator NAEC Energoatom said.
“On December 18, 2022, as of 13:00, all nine nuclear power units located in Ukraine-controlled territory were operating. However, the total capacity of the two units is limited by more than 600 MW due to the unpreparedness of the energy system to receive from them the full possible amount of electricity, as the energy infrastructure facilities have not yet been restored after the shelling of December 16,” the report says.
It specifies that the NAEK expects the infrastructure to be restored as soon as possible to “enable the full available capacity from domestic NPPs as soon as possible.

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Canada will provide $85 million to urgently restore Ukraine’s energy system – Freeland

Canada will provide CAD115 million (about $84.9 million at current exchange rates) to urgently restore Ukraine’s energy system, Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland said.
“As the people of Ukraine continue their heroic resistance, we must all do even more to enable them to endure this struggle. That’s why Canada will provide $115 million from tariff revenues from imports from Russia and Belarus to urgently restore Kiev’s energy system,” she wrote on Twitter.
Canada’s Finance Ministry recalled in a press release Tuesday that on March 2, Canada became the first country to remove most-favoured-nation status for imports from Russia and Belarus, resulting in a 35% tariff on virtually all goods entering Canada from those two countries.
In June, G7 leaders pledged to explore ways to use revenues generated by tariff measures against Russia to help Ukraine. “As the first G7 country to fulfill this commitment, Canada will provide Ukraine with $115 million (Canadian) – the amount of expected tariff revenues from Russian and Belarusian goods – as part of the World Bank’s Re-PoWER Ukraine Project,” the Canadian Treasury said.
It recalled that this fund was recently established to facilitate grants from international partners to restore basic energy services in Ukraine.
Since Russia’s brutal and illegal invasion, Canada has already provided Ukraine with a total of CAD2 billion in direct financial assistance in 2022 and an additional CAD500 million in bonds in support of Ukrainian sovereignty earlier this month. This year, Canada has also provided over CAD2.5 billion in military, humanitarian and other assistance to Ukraine. 

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Norway has allocated 1 billion kroner to rebuild Ukraine’s energy system

The Norwegian government has signed an agreement with the World Bank’s Eastern Europe Regional Office to allocate NOK 1 billion to the World Bank’s Trust Fund for the Revival, Rehabilitation, Reconstruction and Reform of Ukraine, the Norwegian government press office said.
“There is an urgent need to repair the electricity system and other infrastructure in Ukraine after the Russian bombing of civilian facilities. I am glad that today we have signed an agreement to allocate 1 billion Norwegian kroner to carry out repairs quickly,” Foreign Minister Anniken Huitfeldt said.
It is noted that the World Bank is using the fund to further mobilize crisis support to the Ukrainian authorities along with support for critical infrastructure repairs and longer-term reconstruction.
“The World Bank is an organization that has proven to be effective and has quickly mobilized significant funds to help Ukraine. Channeling funding through the World Bank ensures that it will be used effectively and for the agreed purposes. It also guarantees that our efforts will be coordinated with those of other donors and the support we provide will have maximum impact,” said the Minister.
Norwegian funding will be used to provide grants from the World Bank offering flexible support for repair, rehabilitation and preparation for reconstruction of critical infrastructure facilities.
Earlier, Norway provided the government of Ukraine through the World Bank with a budget support of NOK 300 million. These funds were used to pay the salaries of medical personnel, teachers and public sector employees, as well as pensions and social benefits.

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U.S. will allocate over $50 million to rebuild Ukraine’s energy system

The U.S. will finance the purchase of $53 million worth of power grid equipment to restore Ukraine’s energy system, CNN reported, citing a U.S. State Department report.
“This supply package will include distribution transformers, circuit breakers, arresters, disconnectors, vehicles and other key equipment,” the report specifies.
The funds will be in addition to the $55 million already provided for emergency support of the country’s energy sector.

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Power unit No. 5 of Zaporozhye NPP is connected to energy system – Energoatom

Power unit No. 5 of the Zaporizhzhya NPP, which was shut down in an emergency on September 1, is back in operation, Energoatom reported.
“Today, September 2, 2022, the 5th power unit of the Zaporizhzhya NPP, which was turned off on September 1 in the morning as a result of another mortar attack by the Russian occupation forces at the ZNPP site, was connected to the power grid at 13:10,” Energoatom’s Telegram channel reported. on Friday.
According to the report, the increase in power continues.
“The station has two power units (No. 5, 6 – ER), which produce electricity for the needs of Ukraine. There are no comments on the operation of equipment and security systems,” the company said.

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