Energy sector of Ukraine: overview of the situation on 3 March 2022

Linking Ukraine to the European power system

On 1 March 2022, the Board of ENTSO-E acknowledged the exceptional efforts of Ukrenergo in operating the unified power system in autonomous mode during hostilities and expressed support for the definition of key conditions for emergency synchronisation. Continental Europe TSOs are currently identifying the key conditions for urgent synchronisation, which will include an assessment of Protection and Dynamic Stability, Operations and Markets, Legal and Regulatory and Information Technology including Cybersecurity.

The actual state of the unified power system of Ukraine

As of 3 March 2022, Ukrainian TSO – Ukrenergo informs:

  • the unified power system of Ukraine is operating in a stable autonomous mode; no limitations to electricity consumption are required;
  • all nuclear, thermal (TPP) and hydroelectric power plants are operating in standard mode; no power units are undergoing emergency repairs;
  • the main objects of the trunk networks are operating in a usual way. Ukrenergo and distribution system operators are jointly working to repair damaged power lines as the opportunity arrives between the battles.
  • The Ministry of Energy, the State Nuclear Regulatory Inspection and Energoatom jointly referred to the International Atomic Energy Agency requesting to ask NATO to establish an A2/AD zone (Anti Access / Area Denial) over the territory of Ukraine, taking into account the risks and location of nuclear power plants’ facilities of Energoatom. This application is justified by the fact that the troops of the Russian Federation seized the Chornobyl nuclear power plant and the exclusion zone, which is qualified as nuclear terrorism.

The actual situation in the gas sector:

As of 3 March 2022, the GTS Operator informs:

  • GTS continues to supply gas to residents and critical infrastructure. 14 out of 1 389 gas distribution stations (GDS) were stopped due to hostilities.
  • On 3 March 2022, the gas pipeline branch in the Luhansk region leading to GDS Lysychansk was damaged by the occupation forces. Residents are provided with gas through a backup gas supply system.
  • On 2 March 2022, the gas pipeline branch in the Kharkiv region was damaged due to an airstrike. The GTS Operator was forced to deactivate GDS Izyum and Brazhkivka, leaving 40,000 residents without access to gas.
  • Naftogaz Group informs:
  • Ukrgazvydobuvannya produces gas in the usual mode, except for facilities near the line of fore, an increase in gas production by Chornomornaftogaz at the Strelkovo field is noted;
  • facilities of the Ukrtransgas – Operator of the Underground Gas Storage Facilities – are under heightened security and work in a stable mode. Gas extraction takes place in the required volumes.

The Regulator’s activity:

The National Energy and Utilities Regulatory Commission (the NEURC, Regulator):

  • settled the issues of inspections of licensees and submission of reports (decision as of 1 March 2022): all inspections are stopped for the period of martial law; inspections, which have been started, are considered to have failed; the deadlines for submission of reports by the licensees are extended; reports must be submitted within 30 working days after the end of martial law.
  • continues introducing measures to stabilise the work of the electricity market participants (a decision with amendments as of 3 March 2022): namely,
  • it is recommended to stop calculating fines for the market participants;
  • softening conditions for applying the status of “Default” to electricity producers who provide services in the balancing electricity market; electricity suppliers that perform the functions of universal service providers; traders under certain conditions;
  • requiring to indicate in the intra-day market bids the price of electricity not less than 110% of the day-ahead market price set by the Market Operator for each billing period of the relevant day of supply.

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