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out of action. DTEK alone has suffered a 90% loss in thermal power generation capacity, with repeated attacks on its facilities. Sakharuk emphasised that even the best-case scenario, involving no new attacks and increased imports, would still result in a 12% deficit and up to 10-hour daily blackouts.
"People need to know these things. It's not a reason for panic. It's a reason to move quickly," he said.
To prepare for the next heating season, Ukraine needs to defend, repair, increase imports, and install as much generation as possible, which Sakharuk believes is achievable.
Renewable energy sources are being considered but are expected to play a crucial role only in two to three years due to the time and funding required for development.
Much depends on securing donor financing for repairs. DTEK requires approximately $350-400mn to repair its damaged thermal power plants, having spent $126mn last season on rebuilding units destroyed in Russian attacks. The international donors have already promised up to €1bn to make urgent repairs to the power sector before the winter.
DTEK has already sourced some equipment from old plants in central and eastern Europe, although these parts are not ideally suited and have been described as "Frankensteins." DTEK has also secured $46mn in funds from USAID for critical equipment procurement and another $26mn from the Energy Community Fund.
One significant obstacle to financing is DTEK's owner, Ukrainian oligarch Rinat Akhmetov. International financial institutions, such as the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and the Development Finance Corporation (DFC), have policies against financing companies owned by oligarchs.
The EBRD has invested €4bn in Ukraine since Russia's full-scale invasion began in February 2022, recently announcing €300bn for Ukraine’s energy security.
On the EBRD’s reluctance to invest in DTEK, Sakharuk stressed the urgency of the situation. "This is an emergency. There is no other way to go through the coming winter if we don't repair the thermal generation and hydro generation that was damaged," he said. "If they are committed to helping Ukraine, they must help. This is a moral obligation, but it is also not a time to continue playing games."
14 UKRAINE Country Report July 2024 www.intellinews.com