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[edit]

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[edit]

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

Ukraine was estimated to possess natural gas reserves of over 1 trillion cubic meters,[9] and was ranked 26th among countries with proved reserves of natural gas[10] before Crimea was annexed by the Russian Federation in 2014. Its total gas reserves have been estimated at 5.4 trillion cubic meters.[11]

Ukraine stopped buying gas from Russia in 2015 due to the Russian presence in eastern Ukraine.[12] In disputes Russia has stopped gas delivery in 2006 and 2008. In 2009 80% of the European Union gas from Russia was delivered via Ukraine.

The largest domestic gas producer is UkrGasVydobuvannya, a subsidiary of the state-owned company Naftogaz. Private gas production companies in Ukraine are DTEK Oil&Gas, Ukrnaftoburinnya, Burisma, Smart Energy, Poltava Petroleum Company, Geo Alliance Group, and KUB-GAS.[13]

In 2019, Ukraine produced 20.7 billion cubic meters (bcm) of natural gas, while its annual domestic demand was 26 bcm. To satisfy domestic demand, Ukraine relies on gas imports, which totals approximately one third of its domestic demand.[14] To meet domestic demand, Ukraine plans to increase domestic natural gas output to 27 bcm. According to a report issued by the OECD, over 70% of the domestic gas production is covered by the Naftogaz subsidiary UkrGasVydobuvannya.[15] In winter demand can reach 150 mcm per day.[16]

Coal[edit]

This section is an excerpt from Coal in Ukraine.[edit]
Samarska Coal Mine near Ternivka.

Coal mining has historically been an important industry in Ukraine.[17] Coal mining in Ukraine is often associated with coal-rich Donets basin. However this is not the only coal mining region, other being Lviv-Volhynian basin and Dnieper brown coal mining basin. The Donets basin located in the eastern Ukraine is the most developed and much bigger coal mining region in the country.

Ukraine was until recently, the third largest coal producer in Europe.[18] 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 the 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 twenty-year old 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]

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.[19][20]

Electricity production fell from 296 TWh in 1991 to 171 TWh in 1999, then increased slowly to 195 TWh in 2007, before falling again.[21]

In 2011, Ukraine joined the European Energy Community, however there has been slow progress on implementing European energy regulations.[22]

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.[22][23]

As of March 2022 the grid is not connected to any other country.[24]

Nuclear power[edit]

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

Ukraine operates four nuclear power plants with 15 reactors located in Volhynia and South Ukraine.[25] The total installed nuclear power capacity is over 13 GWe, ranking 7th in the world in 2020.[26] Energoatom, a Ukrainian state enterprise, operates all four active nuclear power stations in Ukraine.[27] In 2019, nuclear power supplied over 20% of Ukraine's energy.[28]

Rivne Nuclear Power Plant

70TWh of electricity generation was nuclear in 2020, which was over 50%.[28] This was the 3rd largest share, only France and Slovakia had a higher share. 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.

Lack of coal for Ukraine's coal-fired power stations due to the War in Donbass 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.[29][30][31][32][33]

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%.[34]: 27  In 2020 10% of electricity was generated from renewables; made up of 5% hydro,[35] 4% wind,[36] and 1% solar.[37] Biomass provides renewable heat.[34]: 35 

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 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".[38]

Elementum Energy Ltd owns the most power plants.[39]

Corruption[edit]

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.[40] Ukraine gets gas from Gazprom via third parties. Gazprom did not publish any reporting on anti-corruption programmes.[41]

In 2015 corruption allegations were made against Energoatom, Ukraine's nuclear power operator, with concerns raised by Prime Minister Arseniy Yatsenyuk.[42] In March 2016, Energoatom's assets and bank accounts were frozen by Ukrainian courts over allegedly unpaid debts, against which Energoatom is appealing.[43][44]

See also[edit]

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. ^ "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.
  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. ^ "The Forgotten Potential of Ukraine's Energy Reserves". Harvard International Review. 2020-10-10. Retrieved 2022-02-27.
  10. ^ Country Comparison :: Natural gas - proved reserves, CIA World Factbook (1 January 2018 est)
  11. ^ Kyiv’s gas strategy: closer cooperation with Gazprom or a genuine diversification Archived 2013-10-23 at the Wayback Machine, Centre for Eastern Studies (15 July 2013)
  12. ^ "Naftogaz open letter: a year without gas imports from Russia". www.naftogaz.com. Retrieved 31 August 2018.
  13. ^ [1] Archived 2020-09-29 at the Wayback Machine Associations of Gas Producers of Ukraine
  14. ^ [2], Kiev Post: Why Uraine Gas Production is So Low
  15. ^ [3], OECD Report on SOE Reform in the Hydrocarbons Sector in Ukraine
  16. ^ Reuters (2022-02-24). "Factbox: Ukraine's energy options limited in event of Russian gas disruption". Reuters. Retrieved 2022-02-27.
  17. ^ "Photos: How war has devastated Ukraine's coal industry". CNN. 6 February 2022. Retrieved 2022-02-26.
  18. ^ Vorutnikov, Vladislav (May 25, 2015). "Ukrainian Coal: An Industry Divided". Coal Age. Archived from the original on 14 October 2017. Retrieved 13 October 2017.
  19. ^ "Poroshenko: Ukraine increasing nuclear share to 60%". World Nuclear News. 17 February 2017. Retrieved 21 February 2017.
  20. ^ "Poroshenko: Share of nuclear power grows to 60% amid blockade of trade with Donbas". UNIAN. 16 February 2017. Retrieved 21 February 2017.
  21. ^ "Nuclear Power in Ukraine". World Nuclear Association. February 2017. Retrieved 21 February 2017.
  22. ^ a b Prokip, Andrian (6 May 2019). "Liberalizing Ukraine's Electricity Market: Benefits and Risks". Wilson Center. Retrieved 2 August 2019.
  23. ^ Kossov, Igor (2 August 2019). "New energy market brings controversy". Kyiv Post. Retrieved 2 August 2019.
  24. ^ "Europe's largest nuclear plant shuts down after a Russian attack". The Economist. 2022-03-04. ISSN 0013-0613. Retrieved 2022-03-06.
  25. ^ Nuclear fuel imports from Sweden account for 41.6% in H1, balance from Russia, UNIAN (22 August 2016)
  26. ^ "PRIS – Miscellaneous reports – Nuclear Share". pris.iaea.org. Retrieved 2022-02-27.
  27. ^ Energoatom chief Kim overstepped his powers when signing contract, failed to show up for questioning, says interior minister, Interfax-Ukraine (12 June 2013)
  28. ^ a b "Primary energy consumption by source". Our World in Data. Retrieved 2022-02-27.
  29. ^ "Ukraine turns off reactor at its most powerful nuclear plant after 'accident'". The Independent. 28 December 2014.
  30. ^ "Ukraine Briefly Cuts Power to Crimea Amid Feud With Russia Over NATO". The New York Times. December 24, 2014.
  31. ^ "Coal import to help avoid rolling blackouts in Ukraine – energy minister". ITAR-TASS. December 31, 2014.
  32. ^ "Rolling blackouts in Ukraine after nuclear plant accident". Mashable. December 3, 2014.
  33. ^ "Ukraine to Import Coal From 'Far Away' as War Curtails Mines". Bloomberg News. December 31, 2014.
  34. ^ a b "Ukraine Energy Profile" (PDF).
  35. ^ "Share of electricity production from hydropower". Our World in Data. Retrieved 2022-02-27.
  36. ^ "Share of electricity production from wind". Our World in Data. Retrieved 2022-02-27.
  37. ^ "Share of electricity production from solar". Our World in Data. Retrieved 2022-02-27.
  38. ^ 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.
  39. ^ "Ukraine's energy security landscape mapped: where are the country's power plants located?". Power Technology. 2022-03-03. Retrieved 2022-03-09.
  40. ^ National Integrity System, Ukraine 2011 Archived 2011-06-03 at the Wayback Machine Transparency International
  41. ^ 2011 report on oil and gas companies, Promoting revenue Transparency Archived 2011-06-02 at the Wayback Machine Transparency International 2011
  42. ^ "Energoatom chief recalls highs and lows of first half-year". World Nuclear News. 12 August 2015. Retrieved 16 June 2016.
  43. ^ "Continued Ukraine-Russia tensions over fuel". Nuclear Engineering International. 7 June 2016. Retrieved 16 June 2016.
  44. ^ "Ex-head of Energoatom Derkach claims worst situation in sector in 25 years". Interfax-Ukraine. 23 May 2016. Retrieved 16 June 2016.

External links[edit]

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