Post-war reconstruction of the Ukrainian energy system can give an impetus to the development of the Ukrainian energy sector, in particular the power grid, which even in peacetime was very worn out and in need of significant modernization. The participants of the online INVESTMENT-DONOR CONFERENCE, held on May 31, 2022, discussed what could be the path to recovery and where to get the money for it.
Key messages of the speakers' speeches
Yuri Bondarenko, CIGRE-Ukraine, «SCIENTIFIC & TECHNOLOGY COMPANY ENPASELECTRO» LTD
1. Before Feb 24, 2022, Ukraine has one of the biggest power systems in Europe.
2. After Feb 24, 2022 Ukrainian power system was operating 21 days in isolated mode. Zaporizhzhya NPP and Kakhovka HPP are under control of terrorists now.
3. Specific damages of 330-750KV substations: buildings, transformers, circuit breakers, CT
4. Joint operation with ENTSO-E, restoration and reconstruction of power system development plans:
- international fund is created
- Concept for the power system development in energy transition conditions is developed
- Ukrainian NC of CIGRE for development of recommendations are created.
5. We believe that all members of CIGRE will have joint projects to improve the reliability of power system in the energy transition.
Andriy Maksimets, Phoenix Contact Ukraine LLC
- Technological trends are influencing all energy sectors and taking us into the All-Electric Society
- Core technologies for the electric society are split between electrification, networking and automation
- Automation could be recommended both distribution grids and telecontrol systems
- Another application for automation: measuring and monitoring (security, network infrastructure, modular and managed network switches, etc.)
Ruslan Slobodian, State Inspection of the Energy Supervision
1. We cannot develop just renewable, we need to have chip nuclear energy and highly maneureal (thermal) capacities, too.
2. We have to build new solar and wind, to reconstruct nuclear units, to reconstruct old thermal power plants (3 GWt and more) for them to work within the next 15 years.
3. As to the grids, we have to resolve 2 tasks:
- Provide electricity to the households where the grids are completely destroyed, and to all our business clients asap;
- To replace all the old grids, even repaired, with the new ones using modern technologies and innovations (like smart grids)
4. We’ve developed the concept of smart grid in Ukraine, it is ready for the passage by the government. The list of tasks is listed till the year 2036. This will be the framework for cooperation with our foreign donors.
Konrad Swirski, TRANSITION TECHNOLOGIES UKRAINE
1. Where to find the money? – there is a war.
- No internal resources
- Huge needs : 20+ billion Euro
- New Special European Fund can help
- To adopt a special regulation
- To create a list of investments with a preliminary budget
- That should be done based on the approved country Recovery Plan
4. Can help to do preliminary preparatory work related to the projects and estimations
5. Suggest polish experience of obtaining and using the money from the EU funds
6. Polish Chamber of Power industry and Environmental protection may provide necessary expertise and help.
Mykhailo Ilnytsky, Chernihivoblenergo JSC
1. This will be a presentation of the problems of state power distribution company operating in the Chernihiv, Sumy and Luhansk regions. These are the zones of combat activities and more than 200 of objects were damaged, while 130 are fully destroyed (these include power lines, transformer substations, and other infrastructure). The total value of all that amounts to 1,200,000,000 hryvnas and would require 4 years to rebuild.
2. Today we see the following immediate tasks to do in the view of reconstruction:
- Inspection of networks and registration of damages;
- Asap restoration of power supplies to all the consumers to restore the normal life;
- Preparation of electricity schemes and estimates for reconstruction of power distribution;
- Reconstruction and construction of new power infrastructure in line with the reliable power schemes.
4. An additional problem will be a significant drop in our income due to drop in the client coverage and subsequent increase in additional expenses. We will need to make additional purchases of electricity to cover power losses in the grid and to balance the grid. These expenses are not covered by the tariffs approved by the Regulator.
5. Our proposal: to develop a plan for reconstruction and renovation of the grids with proper estimates taking into account possible innovations and available funding from the foreign partners.
Batyr Azimov, ABC SYNERGY LLC
- This is a very timely discussion. Our company is dealing with repair and constructions of power plants. But we cannot work when the bombs are falling.
- We try to keep our people to get ready for future reconstruction work to provide energy to our country.
- After the war we will need to think how it will be possible to build almost the new energy system in this country instead of the damaged one.
- We have to wait till the end of the war to see where we are and what we need. With the current financial situation, we are unable to buy all those useful things that Mr. Maksymets has shown to us: the exchange rate is unstable and the National Bank would not allow us to bring all that to the country.
Vadym Golembivskyi, TPC VECTOR-VS LLC
- On May 18th Re-Power Ua Initiative was implemented. Now we can see some of its elements: rooftop solar elements. This action plan may become a framework for development of the Ukrainian power supply networks similarly to the EU examples.
- We have to keep in mind the significant differences between the EU and Ukraine. Massive installation of roof panels of 250 volts would become a big problem for distribution companies.
- 3. Energy is a weapon. Energy independence has come to a matter of security for us. This should be always kept in mind when re-shaping and restoring our energy distribution.
- We have to change our mentality: decreasing energy consumption is a matter of security for us. Energy efficiency, decreased energy consumption and decentralization of energy systems.
- We should create small closed distribution systems with self-consumption and self-generation.
- Funding. The GDP will fall, we cannot raise tariffs. We need to ask for support from our European partners. A lot of investment will be needed to cover a long path of grid development in short-term perspective.
Oleksandr Suslov, SPE VOLTEN LLC
- Household waste could be processed down into briquettes, which could be further used as cheap fuel.
- This is a sustainable solution to the fuel problem and a profitable investment.