Russian War Against Ukraine: Energy Dimension DiXi Group alert (status as of 12:00, May 4) Stop russian nuclear terrorism! Set A2/AD and no-fly zones over Ukraine’s nuclear facilities, impose sanctions on Rosatom! Stop the atrocities! Introduce full embargo on russian oil and gas imports! #StopRussianAggression #StandWithUkraine Summary • The enemy attacked the transport and energy infrastructure of Ukraine with missile strikes. Six railway stations in central and western Ukraine as well as electricity substations became the particular targets. • Almost 693,000 consumers did not have access to electricity supply, over 204,000 remained without gas supply. • Energoatom insists that the IAEA shall force Russia to comply with the requirements of the IAEA Board of Governors decision of March 3, 2022, in terms of immediate suspension of cruise missile attacks throughout Ukraine. • The State Nuclear Regulatory Inspectorate suspended the licenses for decommissioning the Chornobyl NPP units, activities on radioactive waste management facilities, and implementation of certain activities in the field of nuclear energy. • The Prime Minister Denys Shmyhal announced the creation of a plan for Ukraine's reconstruction with two dimensions: regional (support from partner countries, sister cities or corporations for a specific city or region) and parametric (reconstruction and transformation program for each sector of the economy). Attacks: Donetsk region In the last 24 hours, 14 settlements of the Donetsk region, including Mariupol, Kramatorsk, Avdiivka and Toretsk were shelled from aircraft, multiple launch rocket systems "Grad", tanks and heavy artillery, killing 23 civilians and injuring 29, as the National Police reported. The shelling damaged at least 35 residential facilities, including the Avdiivka Coke Plant, utilities, residential houses and a school. On the morning of May 4, a severe fire broke out in the temporarily occupied Makiyivka, and eyewitnesses reported that a fuel depot was burning in the city. On the night of May 3, the Russian aircraft dropped heavy bombs on the Azovstal Iron & Steel Works in Mariupol, and during the day the occupiers tried to attack the facilities. At least two civilians were killed due to the bombing. Luhansk During the day, the Russian troops opened fire 34 times on residential region facilities in the region, reported the Luhansk Regional Military Administration Head Serhii Haidai. Significant destruction was inflicted in the cities of Popasna, Rubizhne, and Novotoshkivske. 45 houses were damaged or destroyed in the settlements of the region, including 12 in Lysychansk, 7 in Orikhove, 6 in Rubizhne, 4 in Hirske, 4 in Popasna and 2 in Vrubivka. During the two months of the war, no medical institution in the Luhansk region survived, in particular, on May 3, the regional medical center and dispensary in Lysychansk were destroyed. Residents of Kreminna had no electricity and gas supplies, food was running out, the occupiers were taking away phones and detaining the civilians. There was no water supply in Severodonetsk and only one tank left for water delivery. In addition, residents of the Luhansk region may be at risk of starvation due to the theft and destruction of grain reserves. According to the Minister of Agrarian Policy and Food of Ukraine Mykola Solskyi, the Russians exported about 100,000 tons of grains from the region, another 30,000 tons were destroyed in the city of Rubizhne, and the sowing campaign had not started yet. Kharkiv region On May 3, the Russian occupiers fired on the center of Kharkiv again, exclusively civilian facilities came under fire, and there were injured civilians, reported the Kharkiv Regional Military Administration Head Oleh Syniehubov. In the Kharkiv region, shelling damaged the infrastructure of gas transmission system, following which gas distribution was suspended in some settlements of the Derhachi, Zolochiv, Peresichne and Lyptsi communities. Russia had deployed 22 battalion tactical groups in the Izyum area, where active hostilities continued. According to the UK Ministry of Defense, Russia intended to capture the cities of Kramatorsk and Severodonetsk, which will strengthen military control over the northeastern Donbas and become a stronghold for cutting off Ukrainian forces in the region. Sumy region In the afternoon of May 3, the Russian military fired on the villages of Bilokopytove, Shalyhine and Zarutske in the Sumy region, a total of 21 attacks with mortars and multiple rocket launch systems were recorded, reported the Sumy Region Military Administration Head Dmytro Zhyvytskyi. At night, the Russian troops attacked infrastructure and a school in the Esmanske community. On the morning of May 4, there was a shelling from multiple rocket launch systems “Grad” along the border near the villages of Yunakivka and Mohrytsia. Lviv region On the evening of May 3, the Russian troops fired six missiles at the Lviv region, two of which were shot down by Ukrainian air defense forces, reported the Lviv Regional Military Administration Head Maksym Kozytskyi. 3 missiles hit and damaged electricity substations, and part of the city (about 250,000 consumers) was left without electricity and, due to power outages of pumping stations, also without water supply. In addition, there was a delay in the movement of trains and 2 people were injured. Zakarpattia One of the missiles fired at the Lviv region hit a railway substation near the region village of Volovets, as the Zakarpattia Regional Military Administration reported. As a result of the enemy attack, a distribution gas pipeline was damaged, 57 houses were left without gas supply; windows within 500 m range were broken and cars nearby were damaged. Odesa region The Russian troops launched a missile strike on the city of Artsyz in the Bolgrad district of the Odesa region. During the repeated shelling, the enemy hit with 2 more missiles on the infrastructure facilities of the region. Mykolaiv According to the Mykolaiv Regional Military Administration, as of May 4, since region the beginning of the Russian invasion, 3,007 residential facilities were partially or completely damaged in the region, in particular 2,156 facilities of housing stock, 252 electricity, 110 gas, 49 heat and 8 water supply facilities. On May 3, as a result of Russian attacks on the region, 11 people were injured, a total of 137 people suffered from attacks were in hospitals, reported the Mykolaiv Regional Council Head Anna Zamazeyeva. Kherson region The enemy continued to fire on the liberated settlements of the Kherson region, in particular on the border with the Kryvyi Rih district of the Dnipropetrovsk region, reported the Kryvyi Rih Military Administration Head Oleksandr Vilkul. During the day, the enemy fired on the village of Zahradivka of the Kochubeivka community and on the Vysokopillia community, with houses destroyed, 1 person killed and 5 injured as a result. The State Service of Special Communications and Information Protection of Ukraine reported that 71% of connections of the Ukrainian mobile operator Vodafone were restored in the Kherson region. According to the Zaporizhzhia Regional Military Administration, as of May 4, Zaporizhzhia 742 households were completely destroyed or partially damaged, including region 33 in the last 24 hours. In the village of Zaliznychne, a missile strike damaged 12 houses and an educational institution, and two civilians were killed. In the city of Orikhiv, 7 private houses and an underground low-pressure gas distribution pipeline were damaged. In the city of Huliaipole, as a result of enemy attacks, residential and farm buildings were on fire. According to the Operational Command "South", in the occupied city of Tokmak, the Russian army began to sew a uniform of the Armed Forces of Ukraine and change into it for provocations and discreditation of the Ukrainian military. On May 3, the Russian troops fired missiles at the Dnipropetrovsk region, as Dnipropetrovsk a result railway infrastructure was significantly destroyed, people were injured region and trains stopped, reported the Dnipropetrovsk Regional Military Administration Head Valentyn Reznichenko. According to the Operational Command "South", the Russians launched a Kirovohrad missile strike on railway infrastructure of the Kirovohrad region, and there region were people reported killed and injured. Nuclear and Radiation Safety: As of 08:00 on May 4, all operating NPPs of Ukraine are operating normally, and the radiation, fire and environmental conditions at the station sites and adjacent territories are within the standards. 7 out of 15 nuclear units were in operation (two each at Zaporizhzhia, South Ukraine and Rivne and one at Khmelnytskyi NPP), the other 8 were under maintenance or put in reserve. All NPPs regularly transmit data from station monitoring systems to the IAEA. In response to current risks, Energoatom has begun reviewing documents defining the protection and safety of nuclear facilities. In particular, the company plans to strengthen air and anti-tank protection. In addition, Energoatom and Westinghouse are continuing to prepare for the construction of five new nuclear units under the AP-1000 project. Chornobyl NPP Exclusion Zone According to SSE Chornobyl NPP, the State Nuclear Regulatory Inspectorate of Ukraine (SNRIU) has decided to suspend a number of licenses, which in fact suspend the decommissioning of units 1, 2 and 3 of the Chornobyl NPP, activities on radioactive waste management facilities, and implementation of certain activities in the field of nuclear energy. SNRIU justifies the decision by the fact that, due to the long Russian occupation, SSE ChNPP is unable to comply with the conditions of these activities in accordance with established standards and rules of nuclear and radiation safety. At the same time, the SSE ChNPP management does not agree with the regulator’s decision and prepares explanatory materials in order to renew the licenses. Meanwhile, demining of the territory by the National Guard and the State Emergency Service crews continues in the Exclusion Zone. Zaporizhzhia NPP For two months in a row, the Zaporizhzhia NPP and the satellite city of Energodar have been under the control of Russian terrorists. ZNPP power units are serviced by Ukrainian staff with proper rotation. However, the nuclear and radiation safety of the station is under constant threat. As of May 4, the radiation background on the territory of ZNPP site and the sanitary protection zone remains stable in the range of 8-12 μR/h. Meanwhile, the occupiers once again brought to the Zaporizhzhia NPP site more than 50 "journalists" to shoot a series of fake videos about "calm and safe situation at the site, which is "under protection" of the Russian troops". In addition, the occupiers are massively confiscating private cars from residents of Energodar, as well as using ZNPP special vehicles to put up billboards in the city. In turn, Energoatom once again demands that the IAEA adequately responds to the constant threat to the safety of Ukrainian nuclear power plants from Russia. In particular, the company insists that the IAEA shall force Russia to comply with the requirements of the IAEA Board of Governors decision of March 3, 2022, in terms of immediate suspension of cruise missile attacks throughout Ukraine. Energoatom notes that the previous call to the IAEA on acts of nuclear terrorism committed by Russia, which is a member of the IAEA, was left unanswered. The presence of Russian terrorists at nuclear facilities poses extremely high threats to nuclear and radiation safety on a global scale! Ukraine demands to recognize the actions of Russia and Rosatom as nuclear terrorism, which aims to intentionally violate the security of nuclear power plants, international law and basic human rights with the aim of genocide, ecocide and encroachment on the country's sovereignty. We call on international partners to increase pressure on the IAEA, whose actions may prevent acts of nuclear terrorism by Russia. At the same time, it is critical to minimize Russia's influence on IAEA policies and activities, in particular by removing all Russians from key positions in the Agency's Secretariat and restricting their access to information about Ukraine's nuclear power plants. We also emphasize the need to impose tough sanctions on the management, staff, products, international projects of Rosatom and, in general, the nuclear industry of the aggressor country! Electricity Sector: Power system operation For the 50th day already, Ukraine's power system has been stably operating in trial synchronous mode with the Continental Europe network (ENTSO-E). All types of power plants continue to operate on a dispatching schedule. The current cross-border capacity is 2 GW, however, the trial mode does not provide for full-fledged exports/imports of electricity. However, in the first three days of May, after the suspension of commercial electricity exports to Poland, exports resumed at a maximum of 210 MW (except for a few night hours). Ukrenergo continued to restore main power networks. Over the past three days, the transmission system operator has switched on two 330 kV lines and restored the substation equipment in the Kyiv region. In addition, in the central region of Ukraine, repair crews completed the emergency restoration of two more 330 kV lines. The repair of the 750 kV line passing through the western and northern regions of the country, one 330 kV line in the Kyiv region and one in the eastern part of Ukraine are nearing completion. Testing of new relay protection and re-equipment of switchgears at two substations in the north were underway. In the coming weeks, Ukrenergo will complete works on 750 kV and 330 kV lines in the Kyiv and eastern regions. In particular, it shall replace 9 metal and 4 reinforced concrete towers, more than 3.5 km of cables, as well as eliminate gusts. In the east of Ukraine, inspections of power transmission lines continue (in coordination with the military units). Electricity market performance Day-ahead market (DAM): For May 4, the DAM weighted average settlement price almost did not change and amounted to 2,335.2 UAH/MWh (-0.4% vs the previous trading day). At the same time, a significant increase in exchange prices in the Eastern European markets resulted in their gap with Ukraine increasing. Prices in the markets of Romania, Slovakia and Hungary synchronously increased and were 3.2 times higher than the Base DAM price index of Ukraine, while the price spread with the Polish markets was consistently narrower, standing at almost 2 times. As for May 4, the total volume of trading on DAM continued positive dynamics to 39,593.7 MWh (+4.8% vs the previous day). At the same time, the persistence of a clear opposite trend of supply reduction - up to 108,100.3 MWh (-20.3%) led to a further decrease in market surplus. The gap with the volume of purchase bids decreased from 3.6 to 2.7 times. At the same time, the structure of electricity purchase on DAM has virtually not changed: 89% belonged to suppliers, 10.9% to system operators, 0.1% to traders and producers. Intraday market (IDM): As for May 3, after a two-day increase, the weighted average price of electricity on DAM decreased slightly and amounted to 2,815.43 UAH/MWh (-2% vs the previous day). Similarly, after a rapid recovery in two days, the total volume of trading decreased to 495.1 MWh (-16.7%). At the same time, due to the reduction of supply to 31,873.7 MWh (-14.7%), the market surplus increased slightly and still remains high - the gap with the volume of purchase bids is 64 times. The structure of trading on IDM has changed significantly: 50% of the purchase structure was occupied by suppliers, 47.2% by producers, and 2.8% by network operators. Disruption and resumption of supply According to the Cabinet of Ministers, as of 20:00 on May 3, 816 settlements were disconnected from electricity, a total of 693,000 consumers. During the day, electricity supply was resumed to more than 9,300 consumers. Large-scale power supply disruptions and, consequently, active recovery works were taking place: • in the Donetsk region, according to DTEK, supplies to 25,000 consumers in 22 settlements were resumed; while 241 settlements (according to the Cabinet of Ministers, over 312,000 consumers) remained without electricity supply; • in the Luhansk region, according to the Regional Military Administration, as of 09:00 on May 3, 38 settlements – 26 completely and 12 partially (99,295 consumers in total) were with no electricity supply; supply to 1,500 consumers was resumed during the day; • in the Kharkiv region, according to the Cabinet of Ministers, supply was resumed to 4,600 consumers during the day; 178,000 consumers were still with no electricity supply; • in the Kyiv region, according to DTEK, as of 12:00 on May 4, 14,800 consumers in 27 settlements were left without electricity supply; supply to 1,310 consumers was resumed during the day; • in the Zaporizhzhia region, as of 20:00 on May 3, 22,615 consumers in 73 settlements were left without electricity supply; due to active hostilities, no repairs were carried out during the day; • in the Mykolaiv region, according to the Cabinet of Ministers, supplies to 500 consumers were resumed during the day; • in the Lviv region, as a result of missile attacks on the evening of May 3, three electricity substations were damaged, with 12 settlements completely offline and 5 partially (a total of 250,000 consumers); as of 09:00 on May 4, 630 consumers were left without electricity; • there was no up-to-date information on power supply in the Kherson, Sumy, Chernihiv, and Dnipropetrovsk regions at the time of the review preparation. Gas Sector: As of May 2, the transit of Russian gas through the territory of Ukraine continued to increase and amounted to 98 mcm, which is 4.2 mcm over the previous day level. At the same time, these volumes still account for less than the capacity contracted by Gazprom (109 mcm per day). Physical imports of gas from the EU were reported from Hungary (Beregdaroc interconnection point), however, it amounted only to 0.3 mcm. Gas transit through Ukraine (at Sokhranivka and Sudzha interconnection points), mcm Source: GTSOU Disruption and resumption of supply The Donetsk, Luhansk, Zaporizhzhia, Kharkiv, Kyiv, Kherson, and Mykolaiv regions had the most challenging situation in gas supply. According to the Cabinet of Ministers, as of 20:00 on May 3, over 204,000 consumers were left with no gas supply; gas supply was restored to 2,600 consumers in a day. GTSOU also reported that, as of May 3, the number of gas distribution stations (GDS) shut down due to shelling increased to 56 (facilities located in the Luhansk, Donetsk, Kharkiv, and Zaporizhzhia regions). In particular, the increase is related to main gas pipelines’ damage in the Kharkiv region. The company's specialists could locate the damaged area and optimize the gas supply scheme. In the Donetsk region, the local DSO reported that shelling did not stop. In the last 24 hours, 6 consumers were not disconnected due to fast repairs with temporary materials. Damages were repaired and gas supply was restored to another 9 households. In the Luhansk region, the local DSO reported on repair works in Lysychansk. As a result, supply was restored to 60 consumers. The Kharkiv Regional Military Administration reported that gas supply restoration was completed in 2 settlements (the cities of Barvinkove and Balakliia). Specialists have also restored gas distribution networks of the regional center - in the last 24 hours, gas supply was restored to 1,200 consumers. At the same time, gas distribution was suspended in some settlements of the Derhachi, Zolochiv, Solonytsivka, and Lyptski communities due to hostilities. According to the Zaporizhzhia Regional Military Administration, as of the morning on May 4, 68,709 consumers in 86 settlements remained without gas supply. Last night, in the city of Orikhiv, an underground low-pressure distribution gas pipeline was damaged by shelling; another 13 consumers were left without gas supply. At the same time, last night, in the cities of Zaporizhzhia and Huliaipole, the damage to low-pressure gas pipelines was eliminated; as a result, gas supply was restored to 16 consumers. In the Kyiv region, as of the morning on May 4, gas supply restoration was completed in 118 settlements (in total, 119,571 consumer facilities). In the previous day, repair works were completed and gas supply was restored in 2 settlements. In the city of Irpin, gas supply was restored by 30%. At the same time, 618 consumer facilities in 2 settlements of the Bucha district remained without gas supply. The Mykolaiv Regional Military Administration reported that, as of May 4, the number of damaged infrastructure facilities amounted to 109, and 1,792 consumers remained without gas supply. Restoration works were underway. In the Sumy region, restoration works at gas supply facilities were underway in the cities of Okhtyrka, Trostyanets, and the Velyka Pysarivka community. Operational information on gas supply in the Chernihiv and Kherson regions was not available at the time of the review preparation. Countermeasures of Ukrainian Companies and Public Authorities The President of Ukraine Volodymyr Zelenskyi, in a speech at the summit organized by The Wall Street Journal stated that Ukraine's infrastructure reconstruction would cost about 600 billion USD. Zelenskyi called on global corporations to expand Russia's economic isolation and invest in Ukraine's economy as the country will recover from the war. The Minister of Foreign Affairs Dmytro Kuleba called for punishing Russia for missile terrorism after yesterday's strikes in several regions of Ukraine. Kuleba urged to impose tougher sanctions, as well as to continue supplying heavy weapons to Ukraine, as an adequate response. At the government meeting, the Prime Minister Denys Shmyhal announced the creation of a plan for Ukraine's reconstruction, which will have two dimensions: regional and parametric. The regional implies the support by partner countries, sister cities or corporations to rebuild a specific Ukrainian city or region. The parametric approach implies a program of the National Council for Reconstruction, which develops the parameters of reconstruction and transformation of each sector of the economy. Shmyhal has also announced the launch of the u24.gov.ua platform to raise funds in support of Ukraine within the global project United24, initiated by the President of Ukraine. The platform aims to ensure transparency in the use of funds raised. The funding shall be distributed in three main areas: defense and demining, humanitarian and medical assistance, and reconstruction of Ukraine. On May 3, the Verkhovna Rada, inter alia, adopted laws enabling Ukraine to become a party to the Convention on the Transboundary Effects of Industrial Accidents (draft No. 0140) and providing the necessary procedures for Ukraine's further associate membership in the Euratom program (draft No. 0142). The National Energy and Utilities Regulatory Commission announced the results of the meeting on May 3. Inter alia, the following decisions were made: • postponed the consideration of approving the volumes of doubtful and bad debts of Vinnytsiagaz Zbut, Volyngas Zbut, Sumygaz Zbut to Naftogaz (1.2 billion UAH in total) which are subject to settlement (in fact, write-off), with the auditors opinion by CRESTON UKRAINE LLC (on receivables from gas sales due to failure to adjust volumes to standard conditions) serving as the basis for such operation; • introduced an indefinite obligation for suppliers, which supply or plan to supply gas to households, to set basic annual commercial offers (applicable from May 1 to April 30 of the next year); • postponed a number of obligations for incumbent gas suppliers, which resulted from violations of the law, until the 30th day of the sixth month after the date of termination or lifting of martial law or the state of war in Ukraine; • approved a temporary procedure for the restoration of centralized water supply and sewerage facilities that have been damaged (destroyed) as a result of hostilities. In addition, the NEURC announced an open discussion of the draft amendments to the resolution on improving the reporting forms No. 2-NEURC-electricity distribution, 2a-NEURC-electricity distribution and 4a-NEURC-electricity-and-heat-production. An open discussion (review of comments and suggestions) will take place on May 13, at 12:00. In a conversation with ICIS, the acting CEO of Ukrtransgaz Serhii Pereloma said that foreign gas companies were interested in using the Ukrainian gas storage facilities. The reason, in particular, would be the introduction of storage targets in the EU - at least 80% by November 1, 2022, and 90% by the same date over the next two years. Ukraine is also interested in using its storage facilities to create a strategic EU gas reserve that would serve the countries of the region. Sources: The alerts are developed based on collected, verified, and analyzed information reports of over 100 official sources: ministries, state agencies, network operators, and energy companies. Information was collected only from official websites and official social media accounts. For subscriptions, comments and other questions, please email to: author@dixigroup.org SUPPORT UKRAINIAN ENERGY SECTOR Prior to transferring funds, please email to the Energy Community Secretariat SUPPORT UKRAINIAN ARMY To financially support Heroic Ukrainian Army, please follow the link (The National Bank of Ukraine)
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