Ukraine’s energy sector one year on: DTEK’s message of hope

February 24 marks the one-year anniversary of Russia’s invasion of Ukraine and energy company DTEK held a press briefing to mark the occasion with an update on the energy system and a message of thanks to their partners.

Maxim Timchenko was speaking from the same room in which he held his very first briefing and lauded the country’s success in keeping the lights on as a great achievement for the civilised world.

A year in reflection

Timchenko provided a timeline of the war from European grid synchronisation in March 2021 to the Russian missile barrage that began October 10.

Since October 9,643 shellings have destroyed 11,183 pieces of DTEK equipment causing rolling blackouts for hours and in some cases days.

From January 14, the Russians once again changed their tactics to focus on shelling power generation, mainly thermal power plants.

The country has indeed taken a hit, having lost half of both its power generation capacity and renewable capacity, a situation that is reflected in the rise in inflation and 30% fall in GDP.

And as for the loss of life, Timchenko adds: “141 employees have been killed and 27 are missing”.

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“This is the biggest and most painful loss both for the company and for the entire country’s power sector. We will definitely restore the damaged objects; we will rebuild the destroyed ones, but we can never return the people.”

However, despite the devastation, Timchenko emphasised that DTEK and the country are in no way defeated.

Looking ahead

As of today, coal supplies are stable, oil and gas production continues and gas stores are higher than average. Nuclear and hydropower are also back to full capacity which is easing supply constraints.

Construction on renewables projects has resumed and payment collection rates have jumped from 16% before the war to 100% today, demonstrating a willingness for all to work together to keep the energy system stable.

“I am grateful for the determination of our European partners. [It’s] a remarkable achievement and show of unity to go through the winter season while dramatically decreasing dependence on Russian energy products.”

Timchenko emphasised that the war has spurred Ukraine’s shift to renewables. They are busy preparing for a future energy system and continuing to invest throughout wartime, maximising the availability of military risk insurance.

Also, Ukraine is revamping its grid to a more decentralised model and replacing old soviet-era equipment with systems to accommodate flexible capacity and renewables.

Thus far DTEK has invested over $100 million in keeping the lights on and has only received $9 million of aid in the form of equipment.

Despite the financial constraints, a determined Timchenko stated: “Russia has lost this war, they have lost the most reliable and profitable market in terms of their supply of resources to Europe and despite all their attempts, they did not put us in darkness.”

Timchenko added: “As of today, after each attack, we become stronger, our military forces, our energy crews, and our companies. We feel much more confident”.