DTEK’s CEO updates progress on rebuilding Ukraine’s energy sector

World Oil staff 6/10/2022

In a weekly online briefing during Thursday, DTEK CEO Maxim Timchenko discussed the progress made in rebuilding Ukraine’s energy and electricity infrastructure. He provided an update on energy sector operations and restoration of electricity supply amid the Russian invasion.

Restoration of electricity supply. DTEK has resumed its work in Kyiv. The employees of the central offices of all DTEK businesses, as well as DTEK Academy, are operating in one location, in Kyiv. DTEK's return to Kyiv is a symbol of the company’s faith in the country, in its victory, and in its successful future.

“This is also a positive signal to the international partners with whom the company actively cooperates. Since the beginning of the war, 40 DTEK employees have been killed, 87 wounded and 3 went missing,” Timchenko stated. Since Feb. 24, DTEK's emergency crews have restored power supply to more than 2.2 million Ukrainian homes.

Fighting continues, and energy infrastructure is being damaged by shelling on a daily basis. More than 1.5 million residents in 745 settlements are deprived of electricity supply. Since the beginning of the war, DTEK has provided critical infrastructure companies with 137 million UAH worth of electricity free of charge. These are medical facilities, military installations and law enforcement agencies.

Opening electricity trade with Ukraine. On June 7, Continental Europe TSOs decided to respond positively to Ukrenergo‘s request and confirmed the key conditions that, once met, will enable a gradual opening of electricity trade with Ukraine. The full implementation of these technical conditions is necessary to guarantee the security and stability of the extended power system.

Exports start with a capacity of 100 MW, which will be gradually increased, if the dynamic stability of the European energy system is maintained (maintaining the required frequency of 50 Hz). The current export capacity of Ukraine’s energy system will be close to what it was "before" synchronization—about 1 GW. Further grid integration with ENTSO-E can provide an additional 7.7 GW of electricity capacity for the EU. Overall macroeconomic effect of the synchronization is positive for both: for Ukraine and the EU. Ukrainian RES and NPPs are able to provide for a lack clean energy sources in the EU, in the process of energy transition and decarbonization.

Energy security. Ukraine is not only fighting for its freedom but also for Europe’s security. The global community has realized how important Ukraine is for global food security; Ukraine is a relevant player in the global supply chain; the country is an essential element of Europe's energy security.

“For 100 days, Ukrainians have proven that we are vital not only on the battlefield but also to ensure stable work on the energy front,” said Timchenko. “Moreover, we can even offer to export electricity and thus strengthen the EU's energy security. In spite of the Russian invasion, we see unity in Ukraine. All actors work closely together and contribute to mutual efforts to defend our freedom. In the process of preparing for the next winter heat session, DTEK will continue to do the same.”

As a coal producer, explained Timchenko further, DTEK is currently doing everything in its power to keep the heat and lights on in Ukrainian homes, and will continue doing so. On the other hand, Ukraine needs new sources of financial stability, thus, the export of electricity to, and financial support from, Western partners will play a crucial role.

Humanitarian aid. DTEK and other SCM companies provide the most significant humanitarian aid and contribute greatly to the restoration of liberated territories of Ukraine. Since the beginning of the war, DTEK has provided electricity supply to critical infrastructure institutions for free, in particular state and municipal medical institutions, military and law enforcement agencies, and bread producers. So far, they have used nearly 23.4 million kWh, worth $4 million, in the Kyiv, Dnipropetrovsk and Donetsk regions.

Since the start of the Russian invasion of Ukraine, the DTEK Group has allocated $17 million in humanitarian aid and support to the Armed Forces and the Territorial Defense Forces. The funds have been allocated for food kits and essential medicines for military personnel and internally displaced persons.

“The SCM Group businesses, which include DTEK, and the Rinat Akhmetov Foundation, have donated $72 million for humanitarian aid to civilians, including food, medicine, necessities, evacuation, shelters and support for the armed forces and the territorial defense forces in dozens of cities. This includes providing clothing, personal protective equipment and first aid kits. SCM has provided $30 million in taxes in advance,” Timchenko concluded.

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