Centerenergo power plant catches fire on March 29

The Uglegorsk Thermal Power Plant, owned by Centerenergo (CEEN UK), was partially damaged in a fire on March 29, Donetsk regional authorities reported. The fire was ignited at a coal mill near its Power Unit #2, spreading to the roof of the building where its power units are located, reports said. One person died and five were injured.

Uglegorsk Power Plant has four coal-fired power units with a total capacity of 1,200 MW (26% of the company’s total coal-fired capacity) and three idled gas-fired units with a total capacity of 2,400 MW. The power plant was Centerenergo’s top power producer in 2M13. Its utilization rate was 66% (vs. the company average of 47%) and it produced 1.11 TWh of electricity in 2M13, or 40% of Centerenergo’s total.

All the plant’s coal-fired power units were destroyed by the fire, several media reports stated. An official report on causes of the fire and damages is preliminarily scheduled for April 8.

Vice Prime Minister of Ukraine Yuriy Boyko said on March 30 that the power plant will be completely restored as soon as possible.

Alexander Paraschiy: The event is a disaster not only for Centerenergo, but also for the Ukrainian economy. The fire caused the biggest damage to power-generating equipment in the history of independent Ukraine.

On the positive side, the state seems to be committed to restoring the power plant, which raises the chances of smooth financing of the restoration work. Most likely, resoration will be performed with funds that Centerenergo will raise from additional mark-ups in electricity rates (at the expense of consumers) or at the state budget’s expense.