DTEK to stop its Luhansk power plant as state seeks Donbas coal

The Luhansk Power Plant of DTEK (DTEKUA) has just 2 kt in coal reserves, which is enough for a single day of work, the holding reported in the evening of Dec. 3. The plant hasn’t been able to get any coal after the Russian blockade of coal supplies to Ukraine since Nov. 26, according to the report.

Newly appointed Energy Minister Volodymyr Demchyshyn declared that state-controlled mines have accumulated about 2 mmt of coal in the occupied territories of Donbas, which could be transported from the occupied region. Most of the coal mined there is anthracite and lean coal, types that are very scarce and in high demand in Ukraine currently.

Alexander Paraschiy: At the moment, we are skeptical on the ability to deliver coal from the occupied territories to Ukraine. Certainly, any progress in this direction would be beneficial for Ukraine’s entire energy system. Notably, the Russian side is also doing its best to force Ukraine to take coal from the occupied territories by blocking coal supplies from Russia. This means the Russian side is forcing the Ukrainian government to do business with the separatists controlling the occupied territories of Donbas, who should be involved in the delivery of this coal to central Ukraine.

Yet it will be hard for Ukrainian government to justify such a deal to the public. So for the time being, the stoppage of the Luhansk Power Plant – and a subsequent electricity deficit in the Luhansk region (including both the occupied and Ukrainian-controlled territories) – looks unavoidable.