Eight steps: from the blockade to energy independence

To ensure the independence from the supply of coal from ORDA in the coming months, we need to implement a number of measures and projects. What are those measures? The blockade of the railway messages with ORDO bared among other energy issues. Talked about them experts, but they bad heard the leadership of the country and the industry is poorly understood by most of the society. There is now a chance to begin to solve these problems and become stronger. It is important to start a dialogue and search for solutions, not further escalation of the situation.

The compromise should consist of two parts: a compromise on critical energy issues, the presence of which you have limited time and a compromise on the status of the temporarily uncontrolled territories and economic relations with them in the future.

The parties to the dialogue should be one common goal that all have in common: energy independence, including from the side where de facto there is a war. Ukraine should have the right but not the obligation, economic ties with ORDO. Is it possible to quickly achieve this independence?

Not as fast as we would like the participants of the blockade, but not as long as it is presented to representatives of the authorities and some market participants. Of course, the question of economic relations with ORDO needs to be cleaned of corruption.

To ensure the independence from the supply of coal from ORDA in the coming months, we need to implement a number of measures and projects.

Step 1. The signing of the power generation companies TPP contracts to import coal grade A (anthracite).

They must be signed for two to three weeks that will help to demonstrate the seriousness of intentions of the market participants to ensure the diversification of procurement of coal. May be contracted and delivered to Ukraine 300-400 thousand tons of anthracite over the next two months.

Step 2. The speedy transfer of units No. 2 and No. 5 zmiivska TPP with the use of a-grade coal (anthracite) brand G (gas group).

Holding for two to three weeks to assess the feasibility of refurbishment of the remaining blocks of thermal power plants operating on anthracite, coal of brand of G. furthermore, in the world there are successful practices in the use of petroleum coke instead of anthracite that may be appropriate for Ukraine.

Step 3. The conversion of some units at the Burshtyn TES to provide job opportunities not only for export but also for domestic market.

Step 4. Diversification of the supply of anthracite.

While fighting is going on, Ukraine should ensure that at least 50% of the supply of anthracite coal from alternative sources. The state and market participants should develop a transparent and commercially efficient procurement strategy for coal on the world market.

Step 5. The formation of the minimum reserves of coal grade A in TES at the level of 2-2,5 months.

With a lead, in case of a disruption of supply from generating companies will be able to contract additional imports, which can be delivered on the station for two months, even from distant countries.

Step 6. Revision and modification of the methods of calculation of the wholesale price of electricity, known as the “Rotterdam” in a more efficient and fair.

This would allow the TPP to purchase the necessary volumes of coal from different sources with strict control over the targeted use of funds.

Step 7. Conduct immediate rotation of all the members of the national Commission and the appointment on a competitive basis, new authoritative part of the tariff regulator, which will have credibility in the community.

Шаг8. Information openness of coal supplies from ORDO.

The society must receive regular information on volumes and prices of coal, the counterparties, the use of the funds of the mines. Ukrainian electricity consumers should be confident that their funds do not Fund the insurgents.

Adopting and implementing these points, Ukraine will begin the process of diversifying sources of coal and build energy independence. After six to nine months, the country could be independent of the coal from ORDO. It will strengthen the negotiating position of Ukraine in the economic and political issues.

The best war is a war that was won with minimal losses. Therefore, even if the to organize an economic blockade, only then, when the country will be ready. Now the Ukrainian power is ready to cease the supply of coal from the occupied territories.

Blockade may adversely affect the energy sector in Ukraine, therefore after the approval of such a plan, it is advisable to soften the embargo and begin to miss at least the minimum batch of wagons with coal.

Of course, the proposed plan needs to be credible on all sides.

The credibility of the plan of the society and organizers of the blockade will increase, if the parties will not only be the government and activists, but also the energy of the company, without which its implementation is impossible, as well as MPs, given the need for legislative regulation of certain issues.

This decision on the basis of energy independence is what will make the country stronger and more successful. We must act immediately.

Andrew Gerus, former member of the national Commission, member of the Board of the business Council of the project “Full powers”, Andrey Favorov, Director of “Energy resources of Ukraine”, Yuri Kubrushko, partner of Imepower, Sergei Zuyev, former Vice President of the American energy company AES (Kazakhstan), Alexander Kharchenko, Director of the Center for energy research.