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Energy in Ukraine

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Zaporizhzhia nuclear station, the largest nuclear power plant in Europe

Energy in Ukraine is mainly from gas and coal, followed by nuclear then oil.[1] The coal industry has been disrupted by conflict.[2] Most gas and oil is imported, but since 2015 energy policy has prioritised diversifying energy supply.[1]

About half of electricity generation is nuclear and a quarter coal.[1] The largest nuclear power plant in Europe, the Zaporizhzhia Nuclear Power Plant, is located in Ukraine. Fossil fuel subsidies were USD 2.2 billion in 2019.[3] Until the 2010s all of Ukraine's nuclear fuel came from Russia, but now most does not.[4]

Although gas transit is declining, over 40 billion cubic metres (bcm) of Russian gas flowed through Ukraine in 2021,[5] which was about a third of Russian exports to other European countries.[6] Some energy infrastructure was destroyed in the 2022 Russian invasion of Ukraine.[7][8]

Overview

Energy consumption declined in the late 20th century after the breakup of the Soviet Union.

Gas and coal are the main energy sources, followed by nuclear then oil.

Gas

Ukraine extracts about 20 billion cubic meters of fossil gas each year, and since 2022 this has almost met demand.[9] Ukraine has been estimated to possess natural gas reserves of over 670 billion cubic meters (in 2022),[10] and gas is an important part of energy in Ukraine. In 2021, Ukraine produced 19.8 billion cubic meters (bcm or Gm3) of natural gas. To satisfy domestic demand of 27.3 bcm that year, Ukraine relied on gas imports (2.6 bcm) and withdrawal from underground storage (4.9 bcm). Winter demand can reach 150 mcm per day.[11]

During Soviet times, Ukraine produced a record of 68.7 bcm in 1976. At the time of independence in 1991, production was at 26.6 bcm, and fell in the 1990s to about 18 bcm. Since the mid-2000s, production has stabilised between 20 and 21 bcm.[12] Over 70% of domestic gas production is extracted by UkrGasVydobuvannya,[13] a subsidiary of the state-owned company Naftogaz. Private gas production companies in Ukraine are DTEK, Ukrnaftoburinnya, Burisma, Smart Energy, Poltava Petroleum Company, Geo Alliance Group, and KUB-GAS.[14]

Ukraine stopped buying gas from Russia in November 2015 to reduce gas dependence after the outbreak of the Russo-Ukrainian war,[15] but instead buys it indirectly from traders in Western Europe as part of the Russian gas that transits through Ukraine.[11] The contract to transit Russian gas expires at the end of 2024.[16]

Coal

Samarska Coal Mine [uk], near Ternivka

Coal mining has historically been an important industry in Ukraine. Although the industry is often associated with the coal-rich Donets basin in the east of the country, other coal mining regions include the Lviv-Volhynian basin and the Dnieper brown coal mining basin. The Donets basin is Ukraine's most developed and largest coal mining region.

Ukraine was in 2013 the third largest coal producer in Europe. In 1976, national production was 218 million metric tonnes. By 2016, production had dropped to 41 million metric tonnes. The Donets Black Coal Basin in eastern Ukraine, with 90% of the nation's reserves, suffers from three connected problems: (1) mines are not profitable enough to sustain capital investment, resulting in aging mining equipment and processes, (2) the government, taking advice from the International Monetary Fund, has discontinued $600 million annual mining subsidies, and (3) the Ukrainian government refuses to buy from mines controlled by the self-proclaimed Donetsk People's Republic and Luhansk People's Republic.

Electricity

Electricity production by source, Ukraine

In 2014, total electricity production was 183 TWh, of which 8 TWh was exported to Europe; 88 TWh from nuclear, 71 TWh from coal, 13 TWh from natural gas, and 9 TWh from hydroelectricity. Electricity consumption was 134 TWh after transmission losses of 20 TWh, with peak demand at about 28 GWe. In 2015 electricity production fell to about 146 TWh largely due to a fall in anthracite coal supplies caused by the War in Donbass.[17][18]

Electricity production fell from 296 TWh in 1991 to 171 TWh in 1999, then increased slowly to 195 TWh in 2007, before falling again.[19]

In 2011, Ukraine joined the European Energy Community, however there has been slow progress on implementing European energy regulations.[20]

On 1 July 2019, a new wholesale energy market was launched, intended to bring real competition in the generation market and help future integration with Europe. The change was a prerequisite for receiving European Union assistance. It led to in increased price for industrial consumers of between 14% to 28% during July. The bulk of Energoatom output is sold to the government's "guaranteed buyer" to keep prices more stable for domestic customers.[20][21]

Grid synchronisation with Europe

Since 2017 Ukraine sought to divest itself of dependency on the Russian synchronised system UPS and instead connect westwards with the Synchronous grid of Continental Europe, thereby participating in European electricity markets.[22][23] Power lines existed coupling the country to the grids of neighbouring Poland, Romania, Slovakia and Hungary, but were de-energised.

A necessary prerequisite of Ukrainian integration was the country to successfully demonstrate it was capable of running in a islanded manner, maintaining satisfactory control of its own frequency. To do that would require disconnection from the UPS grid, and a date of 24 February 2022 was set. This proved to be the date Russia invaded Ukraine, but the disconnection nonetheless proceeded to schedule. Ukraine placed an urgent request to synchronise with the European grid to ENTSO-E, the European collective of transmission system operators of which it was a member, and on 16 March 2022 the western circuits were energised, bringing both Ukraine and Moldova, which is coupled to the Ukrainian grid, into the European synchronised grid.[24][25] On 16 March 2022 a trial synchronisation started of the Ukraine and Moldova grid with the European grid.[24]

Nuclear power

Rivne Nuclear Power Plant

Ukraine operates four nuclear power plants with 15 reactors located in Volhynia and South Ukraine.[26] The total installed nuclear power capacity is over 13 GWe, ranking 7th in the world in 2020.[27] Energoatom, a Ukrainian state enterprise, operates all four active nuclear power stations in Ukraine.[28] In 2019, nuclear power supplied over 20% of Ukraine's energy.[29]

In 2021, Ukraine's nuclear reactors produced 81 TWh — over 55% of its total electricity generation,[30] and the second-highest share in the world, behind only France. The Zaporizhzhia Nuclear Power Plant, the largest nuclear power plant in Europe, is in Ukraine.

The 1986 Chernobyl disaster in northern Ukraine was the world's most severe nuclear accident to date.

Lack of coal for Ukraine's coal-fired power stations due to the war in Donbas and a shut down of one of the six reactors of the Zaporizhzhia Nuclear Power Plant led to rolling blackouts throughout the country in December 2014. Due to the Russo-Ukrainian War, the nuclear power plant has been damaged.

Renewable energy

Perovo Solar Park
The share of renewables within energy in Ukraine is less than 5%.[31]: 27  In 2020 10% of electricity was generated from renewables; made up of 5% hydro,[32] 4% wind,[33] and 1% solar.[34] Biomass provides renewable heat.[31]: 35  There is a National Renewable Energy Action Plan to 2030.[35]

Finance

Ukraine signed a loan agreement in-principle for $3.65 billion with the China Development Bank in 2012, during President Viktor Yanukovich's term of office, contingent on the development of agreed development projects in the coal and gas sectors. However, by April 2017 Ukraine had not agreed any suitable projects due to a "lack of convergence in the positions of [Uglesintezgaz] and the energy ministry".[36]

Elementum Energy Ltd owns the most power plants.[37]

Corruption

Corruption is one of the top problems in Ukraine, characterised as a systemic phenomenon, which exists in all sections and levels of the public administration.[38] Ukraine gets gas from Gazprom via third parties. Gazprom did not publish any reporting on anti-corruption programmes.[39]

In 2015 corruption allegations were made against Energoatom, Ukraine's nuclear power operator, with concerns raised by Prime Minister Arseniy Yatsenyuk.[40] In March 2016, Energoatom's assets and bank accounts were frozen by Ukrainian courts over allegedly unpaid debts, against which Energoatom is appealing.[41][42]

See also

References

  1. ^ a b c "Ukraine - Countries & Regions". IEA. Retrieved 2022-02-27.
  2. ^ "The paradox threatening Ukraine's post-coal future". openDemocracy. Retrieved 2022-02-27.
  3. ^ "Fossil-Fuel Subsidies in the EU's Eastern Partner Countries : Estimates and Recent Policy Developments". OECD. Retrieved 2022-03-01.
  4. ^ "Westinghouse and Ukraine's Energoatom Extend Long-term Nuclear Fuel Contract". 11 April 2014. Westinghouse. Archived from the original on 11 April 2014. Retrieved 15 April 2014.
  5. ^ Reuters (2022-01-04). "Russian gas transit via Ukraine fell 25% in 2021". Reuters. Retrieved 2022-02-26. {{cite news}}: |last= has generic name (help)
  6. ^ Mazneva, Elena. "Ukraine Gas Transit Uninterrupted Amid Local Pipe-Damage Reports". BloombergQuint. Retrieved 2022-02-27.
  7. ^ Lock, Samantha (2022-02-27). "Russia-Ukraine latest news: missile strikes on oil facilities reported as some Russian banks cut off from Swift system – live". The Guardian. ISSN 0261-3077. Retrieved 2022-02-27.
  8. ^ Taylor, Kira (2022-02-26). "Ukraine's energy system coping but risks major damage as war continues". www.euractiv.com. Retrieved 2022-02-27.
  9. ^ "Ukraine's UGV brings new high-throughput domestic gas well into production".
  10. ^ "The Forgotten Potential of Ukraine's Energy Reserves". Harvard International Review. 2020-10-10. Retrieved 2022-02-27.
  11. ^ a b "Factbox: Ukraine's energy options limited in event of Russian gas disruption". Reuters. 2022-02-24. Retrieved 2022-02-27. Ukraine has not imported gas directly from Russia since 2015, but it buys it from Western traders as part of the Russian gas that goes through Ukrainian territory to Europe. [..] If Russia maintains gas transit through Ukraine and transit gas pipelines remain operational, Ukraine is able to provide the population and industry with gas. [..] In theory, gas could be imported at up to 40 mcm per day, but this is barely feasible due to a lack of freely available resources in Europe and funds to buy it.
  12. ^ Datskevych, Natalia (2020-02-20). "Top 4 reasons Ukraine's gas production is so low". Business. Kyiv Post. Retrieved 2022-04-10. Figure: Ukraine's gas production in 1991-2019, billion cubic meters
  13. ^ http://www.oecd.org/corporate/SOE-Reform-in-the-Hydrocarbons-Sector-in-Ukraine-ENG.pdf , OECD Report on SOE Reform in the Hydrocarbons Sector in Ukraine
  14. ^ http://agpu.org.ua/en/association/section-member_companies/ Archived 2020-09-29 at the Wayback Machine Associations of Gas Producers of Ukraine
  15. ^ "Naftogaz open letter: a year without gas imports from Russia". www.naftogaz.com. Naftogaz. 2016-11-25. Retrieved 2022-04-10. Today is the first anniversary since Naftogaz stopped importing gas from Russia.
  16. ^ "Ukraine plans to end Russian gas transit contract in 2024 – interview for Deutsche Welle | Naftogaz Ukraine". www.naftogaz.com. Retrieved 2023-12-30.
  17. ^ "Poroshenko: Ukraine increasing nuclear share to 60%". World Nuclear News. 17 February 2017. Retrieved 21 February 2017.
  18. ^ "Poroshenko: Share of nuclear power grows to 60% amid blockade of trade with Donbas". UNIAN. 16 February 2017. Retrieved 21 February 2017.
  19. ^ "Nuclear Power in Ukraine". World Nuclear Association. February 2017. Retrieved 21 February 2017.
  20. ^ a b Prokip, Andrian (6 May 2019). "Liberalizing Ukraine's Electricity Market: Benefits and Risks". Wilson Center. Retrieved 2 August 2019.
  21. ^ Kossov, Igor (2 August 2019). "New energy market brings controversy". Kyiv Post. Retrieved 2 August 2019.
  22. ^ "Connecting Ukraine to Europe's Electricity Grid". Stiftung Wissenschaft und Politik. 24 November 2021. doi:10.18449/2021C57. Retrieved 17 March 2022.
  23. ^ Abnett, Kate; Strzelecki, Marek (1 April 2022). "Explainer: Europe and Ukraine's plan to link power grids". Reuters. Retrieved 1 April 2022.
  24. ^ a b "Continental Europe successful synchronisation with Ukraine and Moldova power systems". ENTSO-E. 16 March 2022. Retrieved 17 March 2022.
  25. ^ "Ukraine joins European power grid, ending its dependence on Russia". CBS News. No. 16 March 2022. Associated Press. Archived from the original on 16 March 2022. Retrieved 23 March 2022.
  26. ^ Nuclear fuel imports from Sweden account for 41.6% in H1, balance from Russia, UNIAN (22 August 2016)
  27. ^ "PRIS – Miscellaneous reports – Nuclear Share". pris.iaea.org. Retrieved 2022-02-27.
  28. ^ Energoatom chief Kim overstepped his powers when signing contract, failed to show up for questioning, says interior minister, Interfax-Ukraine (12 June 2013)
  29. ^ "Primary energy consumption by source". Our World in Data. Retrieved 2022-02-27.
  30. ^ "Nuclear Share of Electricity Generation in 2021". IAEA. Retrieved 26 June 2022.
  31. ^ a b "Ukraine Energy Profile" (PDF).
  32. ^ "Share of electricity production from hydropower". Our World in Data. Retrieved 2022-02-27.
  33. ^ "Share of electricity production from wind". Our World in Data. Retrieved 2022-02-27.
  34. ^ "Share of electricity production from solar". Our World in Data. Retrieved 2022-02-27.
  35. ^ "Statement of the G7+ Ukraine Energy Coordination Group and the Government of Ukraine promoting sustainable green recovery of Ukraine's energy system - European Commission". energy.ec.europa.eu. Retrieved 2024-12-03.
  36. ^ Karin Strohecker, Pavel Polityuk (14 April 2017). "Ukraine could miss out on up to $3.65 billion of China energy loans". Reuters. Retrieved 18 April 2017.
  37. ^ "Ukraine's energy security landscape mapped: where are the country's power plants located?". Power Technology. 2022-03-03. Retrieved 2022-03-09.
  38. ^ National Integrity System, Ukraine 2011 Archived 2011-06-03 at the Wayback Machine Transparency International
  39. ^ 2011 report on oil and gas companies, Promoting revenue Transparency Archived 2011-06-02 at the Wayback Machine Transparency International 2011
  40. ^ "Energoatom chief recalls highs and lows of first half-year". World Nuclear News. 12 August 2015. Retrieved 16 June 2016.
  41. ^ "Continued Ukraine-Russia tensions over fuel". Nuclear Engineering International. 7 June 2016. Retrieved 16 June 2016.
  42. ^ "Ex-head of Energoatom Derkach claims worst situation in sector in 25 years". Interfax-Ukraine. 23 May 2016. Retrieved 16 June 2016.