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Coal stockpiles at Ukraine power plants reach 5-year low as of end-July

Coal stockpiles at Ukraine power plants reach 5-year low as of end-July

12 August 2014

Stockpiles of steam coal at Ukraine’s 14 thermal power plants (TPP) fell 15% m/m to 2.8 mmt as of end-July, reported on Aug. 11 the Interfax-Ukrayina news agency, which referred to its anonymous sources in the Energy Ministry. As of the same date, the power plants had 4.6 mmt of coal a year ago and 4.0 mmt of coal two years earlier.

 

Alexander Paraschiy: The reported stockpiles are the smallest amount of coal stored in the last five years, which poses a threat to Ukraine’s energy security.

 

The most worrying levels of coal stockpiles were observed at the Luhansk TPP of DTEK (DTEKUA) and the Zmiyiv TPP of Centrenergo (CEEN UK) as their remaining stocks will allow the power plants to work normally for less than two weeks. The risks are exaggerated by the fact that the particular coal used by these power plants is mined only in the locations of the most active armed fighting in Donbas. Moreover, coal supplies to the Luhansk TPP are impossible to deliver due to broken roads, according to earlier reports by DTEK.

 

In case the situation in Donbas (particularly, in the eastern part of the Donetsk region and southern part of the Luhansk region) does not stabilize soon, by the end of September five out of the currently operating 13 thermal power plants may be stopped due to insufficient coal stockpiles. They include two Dniproenergo (DNEN UK) power plants and two Centrenergo power plants. Aggregately, the all the Ukrainian coal-fired thermal power plants produced 40% of total country’s electricity in 1H14 and the five “risky” power plants produced 16% of total power.

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