Ministry of Fuel & Energy Considering Use of Gas-Fueled Power Plants

The Deputy Minister of Fuel and Energy announced that the ministry was considering using gas-fired power units. Due to high production costs, these units have been idle for the last three years. The reason the ministry is considering bringing them back on line is the deficit in coal for power plants. Alexander Paraschiy: Our rough calculations show that the costs of 1 MWh production at a gas-fueled power plant would be USD 65, which is 45% higher than costs of coal-fueled power units (USD 45). As gas-fueled power units work only in base mode, they are comparable to nuclear power units, though nuclear power is 3.5 times cheaper in Ukraine (USD 19 per MWh). Thus, using gas-fueled power units given the current gas prices does not look reasonable. The gas-fueled power units of Centrenergo (CEEN: HOLD) and Dniproenergo (DNEN: HOLD) will only be switched on in emergencies.