Razumkov Centre: Ten defence lines of the Ukrainian energy sector

2024-05-24 |

Proposals for the plan of activities at preparation for the autumn-winter season of 2024–2025

The main goal of preparing Ukraine’s energy sector for the autumn-winter season is to preserve the integrity of the Ukrainian energy system and to meet the minimum necessary energy demand of households, the economy and the Defence Forces of Ukraine.

1. Build-up of air defence systems and ammunition for them to protect the key large generation facilities and base transmission system substations, with a focus on nuclear power plants, hydroelectric power plants, operational thermal power plants and combined heat and power plants

2. Two-level (minimum) physical protection of base generation facilities and transmission system substations against UAVs, debris and missiles, wherever this can be done with adequate funding

3. Import of electricity

  • negotiations to increase import limits from 1,700 MW to 2,500–3,000 MW (by capacity);
  • tripling price caps on wholesale markets (day-ahead and daily) to eliminate artificial import barriers in order to cover the capacity deficit;
  • improvement of the mechanism encouraging industrial enterprises to make contracts for electric energy imports, with their removal from the list of consumers subject to scheduled shutdowns.

4. Restoration of large generation capacities

  • repair of 50% of damaged TPP and CHPP capacities at the expense of the available backup equipment and purchases from abroad;
  • planning schedules and volumes of NPP repair works with the aim of the full capacity of all 9 units in November 2024, including the repair (replacement) of the turbine unit rotor at unit No. 2 of the KhNPP;
  • partial restoration of those damaged HPP and HPSPP capacities that can actually be repaired.

5. Decentralization of electricity and heat generation

  • implementation of the started and new SPP, WPP and biofuel power plant construction projects;
  • installation of electricity storage systems, where possible;
  • purchase of piston-powered container and gas turbine power plants with a capacity of up to 30 MW, cogeneration plants, mini-boilers (gas, including propane-butane, coal, biofuel), installation of heat pumps;
  • creation of local cellular energy networks;
  • 100% redundancy of generation for waterworks, boiler houses, hospitals, schools, kindergartens, industrial facilities critical for the national security, mobile communication systems and the Internet.

6. Gas component

  • gas pumping into underground gas storage, taking into account decentralized gas generation and termination of gas transit from January 1, 2025 (up to 16 BCM);
  • preparation of all elements of the GTS for the work in a non-transit mode;
  • creation of a liquid natural gas exchange to attract as many domestic and foreign traders as possible;
  • liberalization of the gas market, including export-import operations.

7. Additional measures to reduce debts in the market

  • significant reduction in the list of enterprises that cannot be disconnected from electricity supply;
  • a gradual increase in household prices to the market level with simultaneous provision of subsidies to low-income strata of the population;
  • reduction of debts to RES generation companies through optimization of the transmission tariff and modernization of the PSO system;
  • freezing of expenditures in the construction of new NPP units in wartime to release funds for the repayment of debts under PSO.

8. Creating a stock of backup equipment for large generation, transmission and distribution systems

9. Energy conservation and energy efficiency

  • modernization for heat insulation of residential and industrial buildings;
  • replacement of energy-intensive equipment in industry with energy-efficient, where this can be done quickly and at a reasonable cost;
  • installation of energy-saving lamps and smart sockets everywhere, non-admission of heating above 19°C in residential premises in winter, non-use of air conditioners by households in summer and a ban on their use in offices and shopping centres in line with the experience of Japan after the Fukushima nuclear power plant accident.

10. Management of the demand

  • strengthening of economic and administrative incentives to reduce electricity consumption by industry and households in the period of 7–10 and 18–22 hours;
  • minimal use of energy-consuming equipment during peak hours: irons, kettles, air conditioners, washing machines, boilers, vacuum cleaners, dishwashers, etc.;
  • wider use of power banks for charging them at night and powering household electrical appliances during peak hours;
  • preparation of a stock of diesel and gasoline generators for use in commercial premises, private homes, at industrial enterprises and critical infrastructure facilities;
  • a large-scale national campaign to promote the integrity of the Unified Energy System (UES) through the utmost economical use of energy resources and reasonable planning of household and industrial demand;
  • planned scheduled and emergency shutdowns in the hours when the demand cannot be met, to ensure the UES integrity.

Originally published by   on April 23, 2024 on Razumkov Center website