Severely damaged Ukraine power stations 'will take a year to rebuild': DTEK

Returning two of western Ukraine's largest thermal power stations to full service could take up to a year but will only be worthwhile if accompanied by improved air defense systems, DTEK Energy's Executive Director Dmytro Sakharuk told S&P Global Commodity Insights March 28.

Russia's March 22 attack on Ukraine's energy infrastructure severely damaged power plants and transmission infrastructure, notably in Kharkiv and Odesa regions. Russian forces deployed 150 air attack aircraft, including drones, ballistic missiles, cruise missiles and anti-aircraft missiles.

"The two biggest power stations in our fleet – Burshtynska TPP [2.4 GW] and Ladyzhynska TPP [1.8 GW] - were significantly damaged. We've lost 50% of our total available capacity," Sakharuk said.

The two coal-fired power stations, with a combined 14 units, would take many months to rebuild, he said.

Repairs were also needed at Dobrotvir, Pridnyprovska and Kryvoryska thermal plants.

"It's going to be a gradual recovery – some of the less damaged units may be back within months, but we'll need nine, 12 months, maybe more, for the more damaged units," he said.

In Kharkiv and Odesa, transmission system operator Ukrenergo was having to impose rolling power outages, reducing supply to residents to six to eight hours a day.

"It's the same story in Odesa. The region consumes 350 MW but all three substations supplying the region were destroyed. We're still using low voltage lines to Kharkiv and Odesa, but supply is only enough for crucial services – water, sewage, hospitals. There's not enough for industry or households," Sakharuk said.

Replacement equipment at DTEK's damaged plants would cost at least $200 million. Last winter, DTEK invested $110 million bringing back 10 damaged units, several of which had been hit again on March 22.

"We need many turbines, generators and transformers as well as unit control systems. Repair is one thing. Defending those units is another. If we don't have sufficient air defense, they again will be destroyed. It will be very easy for Russia to launch missiles and get a very good result," Sakharuk said.

Western donors were needed to help finance the repairs, with Ukraine's Minister of Energy German Galushchenko expected to submit the country's needs to EU energy fund officials shortly, the DTEK official said.

"We need funds today to place orders – but this is not typical equipment for foreign suppliers like Siemens and GE, so it may be difficult to produce quickly," Sakharuk said.

Priority would be given to Ukraine's own production facilities, notably the ZTR transformer manufacturing plant in Zaporizhzhia, but local capacity may not be enough, he said, noting Russian attacks in February had already destroyed four transformers.

Ukraine's power imports rose March 26 to 18.6 GWh (averaging 777 MW/hour) in the wake of the attacks. Galushenko called for a lift to the import threshold from European countries to at least 2.5 GW. In November 2023, the threshold was lifted by 500 MW to 1.7 GW.

Daily auctions for cross-border capacity on Ukraine's borders have started for Poland, Hungary and Slovakia on the Joint Allocation Office (JAO) platform.

The auction for March 28 saw up to 255 MW transmission capacity from Poland to Ukraine awarded at up to Eur20.19/MWh.