russia full-scale invasion of Ukraine has inflicted more than $16 billion-worth of damage on Ukraine’s energy sector, a new report from the Kyiv School of Economics (KSE) has shown.
In its latest assessment of the situation in Ukraine, the International Monetary Fund (IMF) cites the KSE report in its assessment that large-scale attacks on energy infrastructure are creating economic headwinds for Ukraine.
Estimates of losses including forfeited revenue and capacity increase the estimate to nearly $40 billion of losses the report - Assessment of damages and losses to Ukraine's energy sector due to Russia's full-scale invasion’ – found.
Among other key impacts of russia’s full-scale invasion in February 2022:
More than 18 GW of electricity generating capacity has been occupied
The enеrgy system will cost an estimated $50 billion to restore
Damage to Ukraine's energy sector: Over $16 billion
Losses incurred: Nearly $40 billion
As Ukraine's leading private energy company, DTEK has been at the forefront of this crisis, witnessing firsthand the destruction of vital power plants and transmission facilities.
The KSE report highlights the occupation of over 18 GW of electricity generating capacity, including Europe's largest nuclear power plant in Zaporizhzhia. Critical thermal power plants, including several operated by DTEK, have suffered severe damage, with some facing destruction levels exceeding 80%. This unprecedented assault on our energy infrastructure has not only threatened Ukraine's energy independence but also posed significant challenges to our nation's economic stability.
The spring of 2024 saw a series of particularly devastating attacks on thermal generation facilities. All thermal power plants in the controlled territories operated by DTEK, Ukraine's largest coal generation operator, sustained significant damage. Our initial assessment indicates urgent restoration needs of approximately $350 million, covering debris removal, equipment procurement, and essential construction and installation works. As we continue to clear debris and assess the full extent of the damage, we anticipate that the total cost of restoration will be even higher.
Despite these setbacks, DTEK remains committed to Ukraine's energy security and the restoration of our power system. We are actively working on rebuilding damaged facilities and implementing innovative solutions to enhance the resilience of our energy network.
To gain a deeper understanding of the challenges facing Ukraine's energy sector and the road to recovery, we encourage you to download the full KSE report.
