DTEK needs US$350 million to rebuild thermal power plants: where to look for funds

DTEK, the largest private energy company in Ukraine, has said that it needs US$350 million to restore the capacity it has lost due to Russia’s attacks on thermal power plants (TPPs).

Source: DTEK Executive Director Dmytro Sakharuk at Rebuilding Ukraine, an event organised by Ekonomichna Pravda

Sakharuk noted that electricity shortages are currently expected during peak periods in summer and winter, as Ukraine has lost 8 GW of generation capacity as a result of the recent attacks. 

Gas turbines can be used to meet critical needs such as powering hospitals, he explained, but to meet needs on a large scale, thermal power generation needs to be restored, Sakharuk said.

Quote: "We have six power plants. One of them is not going to be rebuilt yet because it is close to the front line and there are constant attacks. The only coal supply route there has been destroyed," he said, adding that the TPP has a capacity of 1 GW. 

The damage caused is estimated at US$250 million plus US$100 million needed for repairs, Sakharuk said. For comparison, last year DTEK suffered slightly less damage and spent US$110 million on recovering from the winter attacks of 2022.  

Last year, the company was able to cover this amount itself, but now DTEK is considering various ways of raising funds. For example, it is looking at sourcing parts and components from European energy facilities, and is currently negotiating with the governments of Germany, Romania, Bulgaria, Greece and Lithuania. According to Sakharuk, this method is the fastest solution for Ukraine, but it will not cover all needs. In addition, DTEK can access funds from the Ukraine Energy Support Fund and other donors such as USAID and JICA.

Background:

• Russian attacks have caused over UAH 986 million (approx. US$24.65 million) worth of damage to land resources at the Kurakhove Thermal Power Plant (TPP) in Donetsk Oblast, with an additional UAH 1 million (US$25,000) worth of damage inflicted on the surrounding environment.
• Lithuania is willing to provide equipment for the reconstruction and repair of Ukraine's energy facilities.
• The Lithuanian Energy Ministry has proposed dismantling its mothballed thermal power plants for spare parts and transferring the equipment for the needs of the Ukrainian energy system.

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