The Wholesale Electricity Market in Wartime

Implications of the Russian invasion and the ways toward revitalization

Unjustified Russian invasion of Ukraine had severe impact on the wholesale electricity market. Since the beginning of the war, there has been a 35% decline in electricity consumption and about 65% in payments. A number of Ukrainian enterprises have stopped functioning. More than 5 million Ukrainians have left their homes and fled abroad. Households were allowed to postpone payments for the utilities which has caused a working capital deficit for the generating enterprises. The energy infrastructure was heavily damaged.

 It will take time for Ukraine to restore the energy sector. Accurate data about the actual damage can be obtained through technical audits. Rehabilitation of energy infrastructure will require enormous efforts and investments, yet, there is an opportunity to reshape Ukraine's energy sector in line with European standards.

This article addresses the wholesale electricity market since the beginning of the unprovoked war against Ukraine and elaborates on the possible options for its restoration.

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Svitlana Chekunova

Leading Expert, Energy Programmes 

She focuses her research on international energy markets, energy security, global energy strategies and implications, energy efficiency, renewables, and environmental issues.

Professional Activity
Before joining Razumkov Centre, Ms. Chekunova was employed by Ukrainian state oil pipeline company (2001-2018), where she has held various positions in the departments of international project management, corporate governance, and strategic development. Among professional functions were: coordinating business dealings with global companies on essential projects such as commercializing the Odesa-Brody pipeline and starting operations of the Pivdenny marine oil terminal; liaising with foreign embassies, international financial institutions, and Ukrainian government authorities.

From 1996 to 2001 she worked at the Representative Office of Howard Energy International, LLC, an American company, as natural gas operations manager, where she was managing the gas sales operations and administering international contracts.

She had experience in the field of environmental protection (nuclear decontamination and water purification projects) at State ecological Centre at State University for Construction and Architecture in cooperation with the City University of New York.
In 1987–1996 she was a lecturer (English and German instruction applied to professional, business and technical requirements) at Kyiv State University of Construction and Architecture, volunteered to translate at various events of Communications and Youth Ministries.

Training Courses
Business and technical training (1996 through 2000) in New York, Groningen (the Netherlands) and Turkey (Howard Energy Offices in Ankara and Istanbul).

Master’s degree in International Business Management (2000) with a specialty in international economics from Kyiv National University for Economy, Bachelor’s degree in Linguistics, Kyiv National University (1987) with a concentration in English and German.