Power outages will return and intensify during repairs at nuclear plant units in summer – Omelchenko
Power outages will return to Ukraine because of the National Energy and Utilities Regulatory Commission’s decision to lower price caps. They may also intensify in summer during the period of repairs at nuclear power plant units.
This was stated by Volodymyr Omelchenko, director of energy programmes at the Razumkov Centre, Censor.NET reports.
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"Another inept decision by the NERC will lead to the return of outage schedules, capacity shortages and a lack of funds to restore the power system. From April 1, the NERC lowered price caps, which will limit imports amid the shortage and make gas-fired generation unprofitable. No one will buy electricity on the EU market at a loss when electricity there is being made artificially cheaper than in Ukraine during shortage hours," he wrote.
According to him, "no one will invest in distributed gas-fired generation because first the PSO for gas-fired generation is cancelled (except for frontline areas), and then a price ceiling is applied to electricity."
"In other words, 18 out of 24 hours are loss-making for it. Billions of hryvnias will also be wiped out as a result of distorted pricing. No normal investor will enter such a market," Omelchenko noted.
The expert also believes that the government’s promised 1.6 GW of distributed gas-fired generation should be forgotten, since "no other regulatory improvements will outweigh the effect of the price caps".
"All the benefits of simplifying equipment imports and grid connection are being neutralised. In the summer heat and at the peak of repairs at nuclear plant units, restrictions will intensify," Omelchenko concluded.
