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Energy in Ukraine

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Gas pipeline in Dniester Canyon National Nature Park

Energy in Ukraine is mainly from gas and nuclear, followed by oil and coal.[1] Ukraine has a diversified energy mix, and no fuel takes up more than a third of the country’s energy sources. 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 1.6 billion in 2021.[3] Until the 2010s all of Ukraine's nuclear fuel came from Russia, but now most does not.[4]

Ukraine’s gas network has a lot of storage, which can be useful for storing Europe’s gas to even out supply and demand,[5] and it formerly transited a lot of Russian natural gas to Europe but that agreement ends at the end of 2024.[6] Some energy infrastructure was destroyed in the Russo-Ukrainian War,[7][8] but wind farms and solar power are thought to be resilient because they are distributed.[9] An energy strategy to 2050 was adopted in 2023 but has not yet been published.[10]

Energy consumption declined in the 1990s after the breakup of the Soviet Union and in the 2010s and 2020s during war with Russia

Gas[edit]

See also: Natural gas in Ukraine and Natural gas transmission system of Ukraine
This section is an excerpt from Natural gas in Ukraine.[edit]

Ukraine has been estimated to possess natural gas reserves of over 670 billions cubic meters (in 2022),[11] and in 2018 was ranked 26th among countries with proved reserves of natural gas.[12] Its total gas reserves have been estimated at 1.870 trillion cubic meters.[13] In 2021, Ukraine produced 19.8 billion cubic meters (bcm or Gm3) of natural gas. To satisfy domestic demand of 27.3 bcm that year, Ukraine relied on gas imports (2.6 bcm) and withdrawal from underground storage (4.9 bcm). Winter demand can reach 150 mcm per day.[14]

During Soviet times, Ukraine produced a record of 68.7 bcm in 1976. At the time of independence in 1991, production was at 26.6 bcm, and fell in the 1990s to about 18 bcm. Since the mid-2000s, production has stabilised between 20 and 21 bcm.[15] According to a report issued by the OECD, over 70% of domestic gas production is extracted by UkrGasVydobuvannya,[16] 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.[17]

Ukraine stopped buying gas from Russia in November 2015 to reduce gas dependence after the outbreak of the Russo-Ukrainian war,[18] but instead buys it indirectly from traders in Western Europe as part of the Russian gas that transits through Ukraine.[14] The contract to transit Russian gas expires at the end of 2024.[19]

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.[20][21] 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.[22] 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]

This section is an excerpt from Electricity in Ukraine.[edit]
Zaporizhzhia nuclear station, the largest nuclear power plant in Europe
Electricity generation by source

The electricity sector in Ukraine is an important part of energy in Ukraine. Electricity production fell from 296 TWh in 1991 to 171 TWh in 1999, then increased slowly to 195 TWh in 2007, before falling again.[23]

In 2011, Ukraine joined the European Energy Community, however there has been slow progress on implementing European energy regulations.[24]

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% and 28% during July. The bulk of Energoatom output is sold to the government's "guaranteed buyer" to keep prices more stable for domestic customers.[24][25]

Most electricity generation is nuclear.[26] The largest nuclear power plant in Europe, the Zaporizhzhia Nuclear Power Plant, is located in Ukraine. Until the 2010s all of Ukraine's nuclear fuel came from Russia, but now most does not.[27] Some electricity infrastructure was destroyed in the Russo-Ukrainian War,[28][29] but wind farms and solar power are thought to be resilient because they are distributed.[30] As of 2024 about 1,700 MW can be imported from other European countries and it is hoped to increase this to cover peak demand.[26]

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%.[31]: 27  In 2020 10% of electricity was generated from renewables; made up of 5% hydro,[32] 4% wind,[33] and 1% solar.[34] Biomass provides renewable heat.[31]: 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 projects in the coal and gas sectors. However, by 2017 Ukraine had not agreed any suitable projects due to a "lack of convergence in the positions of [Uglesintezgaz] and the energy ministry".[35] Elementum Energy Ltd owns the most power plants.[36]

During war[edit]

A fire at Kharkiv TEC-5 combined heat and power plant due to a Russian attack in 2022
See also: Russian strikes against Ukrainian infrastructure (2022–present)

In the winter of 2022-23 Russia targeted switchyards and transformers, but the following year they concentrated on power plants perhaps because they are harder to protect and take longer to repair.[9]

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. ^ "Review of energy subsidies in the context of energy sector reforms in Ukraine".
  4. ^ "Westinghouse and Ukraine's Energoatom Extend Long-term Nuclear Fuel Contract". Westinghouse. 11 April 2014. Archived from the original on 11 April 2014. Retrieved 15 April 2014.
  5. ^ "Natural gas prices are rising after Russia attacked Ukrainian storage tanks". Quartz. 2024-04-11. Retrieved 2024-04-11.
  6. ^ Walker, Laurence (2024-04-09). "Russia may target gas system if transit ends – Eustream". MONTEL. Retrieved 2024-04-11.
  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. ^ a b "Russia changes tack on targeting Ukraine's energy plants". www.ft.com. Retrieved 2024-04-12.
  10. ^ "Resilient and renewable - modelling Ukraine's energy system". Instrat. Retrieved 2024-05-09.
  11. ^ "The Forgotten Potential of Ukraine's Energy Reserves". Harvard International Review. 2020-10-10. Retrieved 2022-02-27.
  12. ^ "Ukraine". CIA World Factbook. 1 January 2018.
  13. ^ "Kyiv's gas strategy: closer cooperation with Gazprom or a genuine diversification". Centre for Eastern Studies. 15 July 2013. Archived from the original on 2013-10-23.
  14. ^ a b "Factbox: Ukraine's energy options limited in event of Russian gas disruption". Reuters. 2022-02-24. Retrieved 2022-02-27. Ukraine has not imported gas directly from Russia since 2015, but it buys it from Western traders as part of the Russian gas that goes through Ukrainian territory to Europe. [..] If Russia maintains gas transit through Ukraine and transit gas pipelines remain operational, Ukraine is able to provide the population and industry with gas. [..] In theory, gas could be imported at up to 40 mcm per day, but this is barely feasible due to a lack of freely available resources in Europe and funds to buy it.
  15. ^ Datskevych, Natalia (2020-02-20). "Top 4 reasons Ukraine's gas production is so low". Business. Kyiv Post. Retrieved 2022-04-10. Figure: Ukraine's gas production in 1991-2019, billion cubic meters
  16. ^ http://www.oecd.org/corporate/SOE-Reform-in-the-Hydrocarbons-Sector-in-Ukraine-ENG.pdf , OECD Report on SOE Reform in the Hydrocarbons Sector in Ukraine
  17. ^ http://agpu.org.ua/en/association/section-member_companies/ Archived 2020-09-29 at the Wayback Machine Associations of Gas Producers of Ukraine
  18. ^ "Naftogaz open letter: a year without gas imports from Russia". www.naftogaz.com. Naftogaz. 2016-11-25. Retrieved 2022-04-10. Today is the first anniversary since Naftogaz stopped importing gas from Russia.
  19. ^ "Ukraine plans to end Russian gas transit contract in 2024 – interview for Deutsche Welle | Naftogaz Ukraine". www.naftogaz.com. Retrieved 2023-12-30.
  20. ^ "Photos: How war has devastated Ukraine's coal industry". CNN. 6 February 2022. Retrieved 2022-02-26.
  21. ^ Білецький В. С. Гайко Г.І, ;Нарис історії гірництва в Україні. К.: ТОВ Видавничий дім «Києво-Могилянська академія». 2022. — 194 с.
  22. ^ Vorutnikov, Vladislav (May 25, 2015). "Ukrainian Coal: An Industry Divided". Coal Age. Archived from the original on 14 October 2017. Retrieved 13 October 2017.
  23. ^ "Nuclear Power in Ukraine". World Nuclear Association. February 2017. Retrieved 21 February 2017.
  24. ^ a b Prokip, Andrian (6 May 2019). "Liberalizing Ukraine's Electricity Market: Benefits and Risks". Wilson Center. Retrieved 2 August 2019.
  25. ^ Kossov, Igor (2 August 2019). "New energy market brings controversy". Kyiv Post. Retrieved 2 August 2019.
  26. ^ a b "How Ukraine is keeping the lights on under Russian fire".
  27. ^ "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.
  28. ^ 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.
  29. ^ Taylor, Kira (2022-02-26). "Ukraine's energy system coping but risks major damage as war continues". www.euractiv.com. Retrieved 2022-02-27.
  30. ^ "Russia changes tack on targeting Ukraine's energy plants". www.ft.com. Retrieved 2024-04-12.
  31. ^ a b "Ukraine Energy Profile" (PDF).
  32. ^ "Share of electricity production from hydropower". Our World in Data. Retrieved 2022-02-27.
  33. ^ "Share of electricity production from wind". Our World in Data. Retrieved 2022-02-27.
  34. ^ "Share of electricity production from solar". Our World in Data. Retrieved 2022-02-27.
  35. ^ 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.
  36. ^ "Ukraine's energy security landscape mapped: where are the country's power plants located?". Power Technology. 2022-03-03. Retrieved 2022-03-09.

External links[edit]

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