Ukraine is likely to secure approval for an emergency connection to the European energy grid in the next few days, Maxim Timchenko, the CEO of Ukraine’s largest private energy company DTEK, said.
The long-planned link-up, which would increase the independence of Ukraine’s energy system from Russia, was originally scheduled to start in 2023.
But the European Union said last week it would press on as quickly as possible following Moscow’s invasion of Ukraine.
In a long-scheduled move on Feb. 24, Ukraine disconnected itself from the Russian and Belarusian power grids in preparation for joining the main European grid, ENTSO-E.
On that day, Russia invaded Ukraine in what Moscow calls a “special operation”.
Once the European link-up is agreed, existing infrastructure would allow the inflow of 2 GW a day from Slovakia, Hungary and Romania, Timchenko said. This would amount to 15% of Ukraine’s current daily consumption, he added. The rest would continue to come from local production.
Timchenko, a Russian-born Ukrainian citizen, spoke to Reuters from a location in western Ukraine on Wednesday.
DTEK, the company he has led for 17 years, is owned by Ukraine’s richest man, Rinat Akhmetov.
It currently provides about 20% of Ukraine’s electricity through various renewable installations and eight coal power plants, one of which is occupied by Russian troops in the eastern region of Luhansk.
“We evacuated some of the staff. It was very difficult to do that ... some of them stayed,” said Timchenko, adding that the plant has ceased operations.
OUTAGE RISK
The risk of power outages form war damage is ever-present, he said.
“We have a huge problem with transmission lines in areas with military operations, in the Donetsk and Kyiv regions” where nearly 1 million people were without power because of fighting nearby, he added.
Despite one of DTEK’s plants, Zaporizhia TPP, being only a few miles from Russian-occupied territory, the company has decided to keep it running.
“It is always a difficult decision, and we take a safety-first approach,” says Timchenko, adding that DTEK will follow the instructions of Ukraine’s grid operator, even if it means keeping the plant running under Russian occupation.
“We will stay as a Ukrainian company in a Ukrainian city, and as long as (the Russians) don’t interfere in our operations, we will keep running our power stations.”
The main issue at Zaporizhia TPP is now a shortage of coal, as deliveries can no longer get to the plant. Timchenko said there was currently enough for 10-12 days, after which the plant would probably switch to gas.
The rest of DTEK’s plants are still being supplied from DTEK’s own mines in central Ukraine and with deliveries from Poland.
Asked what more Ukraine’s Western allies could do to ensure Ukraine’s energy security, Timchenko suggested emergency financial assistance to Ukraine’s state-owned energy providers, who have lost a large part of their cashflow as Ukrainians lose their ability to pay utility bills during the war.
“They produce electricity for households, so they have this (balance of payments) deficit, and they still have to pay salaries and make repairs,” he said.
DTEK will not need the same sort of assistance, but Timchenko said it was likely to need subsidised coal as it will be unable to afford sky-high market prices for much longer.
“We can afford to pay $100 per ton, but not $350,” he said.
An EU official said a decision by transmission system operators on the European link was expected on Friday afternoon.
The European Network of Transmission System Operators for Electricity (ENTSO-E) did not immediately respond to a request for comment.
(by Kate Abnett; Andrew Heavens)
