Donbasenergo secures coal to restart its Sloviansk power plant

Power GenCo Donbasenergo (DOEN UK) is planning to commission the only power unit of its Sloviansk Thermal Power Plant (TPP) on Dec. 31, the Interfax-Ukrayina news agency reported on Nov. 27, citing a company representative. To do so, it has concluded contracts with coal mines working in the occupied territory of Donbas to provide anthracite coal to its power stations. In particular, it’s going to get coal from DTEK’s Sverdlovantratsit and state holding Snizhneantratsit. The easiest way to deliver the coal will be by trucks, said an anonymous source cited by Interfax.



The Sloviansk TPP was at the epicenter of the government’s anti-terrorist operation in June 2014 and was partially damaged in early July before terrorists abandoned it. The station has been idle since then – only auxiliary generators were working, which generated heat for the satellite city and electricity to power the station itself. Donbasenergo said earlier it expected to fully restart the station by the end of this year.

In Donbasenergo’s news of Nov. 20, it revealed its plan to restart Sloviansk TPP on Dec. 1. Its other power station, Starobesheve TPP, is currently located in the occupied territory of Donbas near the frontline. Both power stations consume anthracite coal, whose deposits are fully located in the occupied territory of Donbas.



Alexander Paraschiy: The company’s decision to buy coal from the occupied territories raise concerns about not only ethics, but military strategy. The Russian-backed separatists are likely to gain access to the money streams of such a deal. Yet with assets located on (or nearby) the coal-rich occupied territory, the company hardly has any affordable alternatives.



Ukrainian mines that are located outside the occupied territory do not produce suitable coal for Donbasenergo, so the company would only be able to import the anthracite from Russia or South Africa, as its peers are trying to do. For them, Centrenergo and DTEK’s Dniproenergo, importing makes more sense since their power plants are located far from Donbas. In the big picture, we believe the deal won’t harm Ukraine’s long-term goal of recapturing the occupied territory.

Источник: Конкорд Капитал