Page 109 - UKRRptJul24

territory of Ukraine," said Prime Minister Denys Shmyhal. According to him, the funds will be directed to state energy companies for the restoration of generating capacities and infrastructure, as well as for the construction of a new decentralized generation structure. In total, the EBRD has provided €4B to Ukraine since the start of the full-scale Russian invasion. Shmyhal called strengthening the energy industry following the Russian terrorist attacks a key government priority. According to Shmyhal, the consequences of Russian attacks on energy infrastructure will force Ukrainians to conserve electricity for years.
Where will Ukrainian energy companies direct ₴50B in revenue from increased electricity tariffs? Analysts have calculated that the increase in consumer electricity prices will generate an additional ₴50B for state energy companies Energoatom and Ukrhydroenergo in 2024. The tariff increase will allow Energoatom to spend less on obligatory consumer price subsidies, increasing its profit. Ukrhydroenergo will use the additional money received to restore its damaged hydroelectric plants, while Energoatom will use it to build new nuclear power units. The Ministry of Energy stated that increasing the electricity tariff for household consumers is necessary to restore the damaged state power generation network. This year, the government increased the consumer electricity price to ₴4.32 per kWh. For comparison, at the end of 2023, in the EU countries, the average tariff for household electricity was €0.2226 per kWh, or ₴9.39.
Ukrenergo, the Ukrainian national power company, is being forced to implement emergency outages in 12 oblasts as of June 6 – Kharkiv, Sumy, Kyiv, Cherkasy, Chernihiv, Ivano-Frankivsk, Rivne, Volyn, Lviv, Odesa, Zaporizhzhia and Kirovohrad – starting at 20:40 on 5 June due to consumption limits having been exceeded.
Ukrainian Prime Minister Denys Shmyhal believes that the long-term consequences of Russian attacks on the Ukrainian energy sector will require savings in the coming years. "The consequences of Russian attacks on energy are long-term. Savings will therefore be part of our daily lives in the years to come... Our goal is to save [electricity] at all levels: from large companies to individual houses and apartments," he said.
Ukraine’s Prime Minister Denis Shmygal says the situation in the country’s energy sector is very difficult on June 5. "The situation is extremely difficult. More than 9 GW of generating capacity has been lost," he wrote on his Telegram channel, adding that Ukrenergo, the country’s electric grid operator, has to cut power to save energy at times. In early May, due to energy shortages, Ukraine introduced restrictions on power consumption for industrial enterprises and called on people to refrain from using power-intensive devices during peak hours. But these measures proved to be insufficient and rolling blackouts were introduced. Following the loss of numerous generating facilities and amid hot weather, Ukraine has dramatically increased electricity imports since early June. According to Ukrenergo, it planned to import 23,953 MW/h on June 4. Kyiv said earlier that it was working with European partners to increase the capacity of interstate interconnectors, and power import.
Ukraine's regions are becoming energy-independent: A waste incineration plant that produces electricity will be built in Odesa, and 10
109 UKRAINE Country Report July 2024 www.intellinews.com