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Energy in Ukraine

From Wikipedia - Reading time: 13 min

Gas pipeline in Dniester Canyon National Nature Park

Energy in Ukraine is mainly from gas and nuclear, followed by oil and coal.[1] Ukraine has a diversified energy mix, and no fuel takes up more than a third of the country’s energy sources. 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 1.6 billion in 2021.[3] Until the 2010s all of Ukraine's nuclear fuel came from Russia, but now most does not.[4]

Ukraine’s gas network has much storage, which can be useful for storing Europe's gas to even out supply and demand,[5] and it formerly transited much Russian natural gas to Europe but that agreement ends at the end of 2024.[6] Some energy infrastructure was destroyed in the Russo-Ukrainian War,[7][8] but wind farms and solar power are thought to be resilient because they are distributed.[9] An energy strategy to 2050 was adopted in 2023 but has not yet been published.[10]

Energy consumption declined in the 1990s after the breakup of the Soviet Union and in the 2010s and 2020s during war with Russia

History

[edit]

In 2011, Ukraine joined the European Energy Community, however there has been slow progress on implementing European energy regulations.[11]

Gas

[edit]
This section is an excerpt from Natural gas in Ukraine.[edit]

Ukraine extracts about 20 billion cubic meters of fossil gas each year, and since 2022 this has almost met demand.[12] Ukraine has been estimated to possess natural gas reserves of over 670 billion cubic meters (in 2022),[13] and in 2018 was ranked 26th among countries with proved reserves of natural gas.[14] 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.[15]

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.[16] Over 70% of domestic gas production is extracted by UkrGasVydobuvannya,[17] 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.[18]

Ukraine stopped buying gas from Russia in November 2015 to reduce gas dependence after the outbreak of the Russo-Ukrainian war,[19] but instead buys it indirectly from traders in Western Europe as part of the Russian gas that transits through Ukraine.[15] The contract to transit Russian gas expires at the end of 2024.[20]

Oil

[edit]
These paragraphs are an excerpt from Oil in Ukraine.[edit]

In 2021, over half of Ukraine’s petroleum was produced domestically.[21] Products from Lukoil have been banned from transiting the country,[22] except to Hungary.[23] This goes through the Druzhba pipeline.[24] Excise duty on diesel and gasoline is being increased.[25]

The Odesa–Brody pipeline is not being used as of 2023.[26] Refineries, such as Kremenchuk were destroyed or shutdown in 2022 in the Russo-Ukrainian war.[27]

Coal

[edit]
This section is an excerpt from Coal in Ukraine.[edit]
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

[edit]
This section is an excerpt from Electricity in Ukraine.[edit]
Zaporizhzhia nuclear station, the largest nuclear power plant in Europe
Electricity generation by source

The electricity sector in Ukraine is an important part of energy in Ukraine. Most electricity generation is nuclear.[28] The bulk of Energoatom output is sold to the government's "guaranteed buyer" to keep prices more stable for domestic customers.[29][30] Zaporizhzhia is the largest nuclear power plant in Europe. Until the 2010s all of Ukraine's nuclear fuel came from Russia, but now most does not.[31]

Some electricity infrastructure was destroyed in the Russo-Ukrainian War,[32][33] but wind farms and solar power are thought to be resilient because they are distributed.[34] As of 2024 about 1.7 GW can be imported from other European countries and it is hoped to increase this interconnection to 2 GW, but that will not be enough to cover peak demand.[28][35] Many small gas-turbine generators are being installed to reduce the blackouts being caused by Russian attacks.[35]

Renewable energy

[edit]
This section is an excerpt from Renewable energy in Ukraine.[edit]
Perovo Solar Park
In Ukraine, the share of renewables within the total energy mix is less than 5%.[36]: 27  In 2020 10% of electricity was generated from renewables; made up of 5% hydro,[37] 4% wind,[38] and 1% solar.[39] Biomass provides renewable heat.[36]: 35 

Heating

[edit]

District heating has been attacked. In 2024 the International Energy Agency (IEA) wrote about heat supply to Ukraine’s major cities. “Most attacks on heating infrastructure have occurred in regions close to the front lines. The Kharkiv region is now without large-scale heat generating capacity and other frontline regions – particularly Chernihiv, Donetsk, Zaporizhzhia, Sumy and Mykolaiv – have suffered severe damage to their heat generation capacities. Heat supply is also at risk in Ukraine’s capital, Kyiv.”[40]

Efficiency and demand response

[edit]

In 2024 the IEA recommended engaging consumers in energy saving and demand response, while continuing investments in energy efficiency. They said that “a social tariff that safeguards a certain volume of consumption at subsidised rates, after which consumers pay a higher price, would help to incentivise efficient practices and investments, supported by public information campaigns that advise on energy efficiency measures for immediate impact as well as longer-term gains. Lowering the default temperature for district heating can also provide quick savings.”[40]

Finance

[edit]

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 projects in the coal and gas sectors. However, by 2017 Ukraine had not agreed any suitable projects due to a "lack of convergence in the positions of [Uglesintezgaz] and the energy ministry".[41] Elementum Energy Ltd owns the most power plants.[42]

During war

[edit]
A fire at Kharkiv TEC-5 combined heat and power plant due to a Russian attack in 2022
See also: Russian strikes against Ukrainian infrastructure (2022–present)

In the winter of 2022-23 Russia targeted switchyards and transformers, but the following year they concentrated on power plants perhaps because they are harder to protect and take longer to repair.[9]


References

[edit]
  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. ^ "Review of energy subsidies in the context of energy sector reforms in Ukraine".
  4. ^ "Westinghouse and Ukraine's Energoatom Extend Long-term Nuclear Fuel Contract". Westinghouse. 11 April 2014. Archived from the original on 11 April 2014. Retrieved 15 April 2014.
  5. ^ "Natural gas prices are rising after Russia attacked Ukrainian storage tanks". Quartz. 2024-04-11. Retrieved 2024-04-11.
  6. ^ Walker, Laurence (2024-04-09). "Russia may target gas system if transit ends – Eustream". MONTEL. Retrieved 2024-04-11.
  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. ^ a b "Russia changes tack on targeting Ukraine's energy plants". www.ft.com. Retrieved 2024-04-12.
  10. ^ "Resilient and renewable - modelling Ukraine's energy system". Instrat. Retrieved 2024-05-09.
  11. ^ Prokip, Andrian (6 May 2019). "Liberalizing Ukraine's Electricity Market: Benefits and Risks". Wilson Center. Retrieved 2 August 2019.
  12. ^ "Ukraine's UGV brings new high-throughput domestic gas well into production".
  13. ^ "The Forgotten Potential of Ukraine's Energy Reserves". Harvard International Review. 2020-10-10. Retrieved 2022-02-27.
  14. ^ "Ukraine". CIA World Factbook. 1 January 2018.
  15. ^ 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.
  16. ^ 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
  17. ^ 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
  18. ^ http://agpu.org.ua/en/association/section-member_companies/ Archived 2020-09-29 at the Wayback Machine Associations of Gas Producers of Ukraine
  19. ^ "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.
  20. ^ "Ukraine plans to end Russian gas transit contract in 2024 – interview for Deutsche Welle | Naftogaz Ukraine". www.naftogaz.com. Retrieved 2023-12-30.
  21. ^ "Ukraine - Countries & Regions". IEA. Retrieved 2024-09-04.
  22. ^ "Hungary urges Ukraine to OK Russian oil loophole". POLITICO. 2024-08-22. Retrieved 2024-09-04.
  23. ^ "Ukraine backs Russian oil loophole for Hungary". POLITICO. 2024-09-10. Retrieved 2024-09-28.
  24. ^ "Ukraine will honour contracts for oil transit to Europe, official says".
  25. ^ "Ukraine: Zelensky approves excise tax hike on gasoline and diesel". www.agenzianova.com. Retrieved 2024-09-28.
  26. ^ Słowińska, Joanna (2023-06-05). "Odessa-Brody-Gdańsk oil pipeline will return if there is money". BiznesAlert EN. Retrieved 2024-09-28.
  27. ^ Klitina, Aleksandra (2022-06-22). "Russia shelling shuts down Ukrainian oil refining". Kyiv Post. Retrieved 2024-09-28.
  28. ^ a b "How Ukraine is keeping the lights on under Russian fire".
  29. ^ Prokip, Andrian (6 May 2019). "Liberalizing Ukraine's Electricity Market: Benefits and Risks". Wilson Center. Retrieved 2 August 2019.
  30. ^ Kossov, Igor (2 August 2019). "New energy market brings controversy". Kyiv Post. Retrieved 2 August 2019.
  31. ^ "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.
  32. ^ 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.
  33. ^ Taylor, Kira (2022-02-26). "Ukraine's energy system coping but risks major damage as war continues". www.euractiv.com. Retrieved 2022-02-27.
  34. ^ "Russia changes tack on targeting Ukraine's energy plants". www.ft.com. Retrieved 2024-04-12.
  35. ^ a b Stern, David L. (2024-07-06). "Russia destroyed Ukraine's energy sector, so it's being rebuilt green". Washington Post. ISSN 0190-8286. Retrieved 2024-07-16.
  36. ^ a b "Ukraine Energy Profile" (PDF).
  37. ^ "Share of electricity production from hydropower". Our World in Data. Retrieved 2022-02-27.
  38. ^ "Share of electricity production from wind". Our World in Data. Retrieved 2022-02-27.
  39. ^ "Share of electricity production from solar". Our World in Data. Retrieved 2022-02-27.
  40. ^ a b Ukraine's Energy Security and the Coming Winter – Analysis. International Energy Agency (Report). September 2024.
  41. ^ 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.
  42. ^ "Ukraine's energy security landscape mapped: where are the country's power plants located?". Power Technology. 2022-03-03. Retrieved 2022-03-09.


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