The Ukrainian crushing industry has been asked to reduce electricity consumption amid a growing energy crisis, market sources say.
On Thursday, October 20, Ukrainian processing enterprises in the southern, southeastern and parts of the central region received an order to reduce electricity consumption outlining a schedule and limits. The aim is to cut usage in the next couple of days by 25-30% in response to the critical state of the local energy industry.
Following several attacks by Russian missiles and kamikaze drones on Ukrainian power plants, about 40% of the energy complex is in dire condition, according to official notes from the government.
The effect on production volumes
Ukrainian crushers and terminals report that they are minimizing electricity use and having to reduce processing volumes, as the allocated consumption limits are not allowing for greater quantities.
“All factories and terminals in Odesa, Pivdennyi, and Chornomorsk are switching to a mode of reducing electricity consumption by 25-30%,” a crusher in Odesa region told Fastmarkets Agriculture.
“This topic is being discussed now, but there is no information from the terminals yet, as the schedules for the possible shutdowns should come first. Only after that might the directors of the factories and terminals make decisions and pass them on to the managers,” a second source said.
At the same time, some sources in the southern regions reported stable operations of the port infrastructure and an absence of rolling blackouts, with the transition of energy-intensive work to nighttime.
“The only request was that any additional energy-intensive work, such as repairs or moving goods that require additional electrical power, be done at night,” a source based in the southern region told Fastmarkets.
Short-term power outages are negatively affecting enterprises’ operations, but so far the effects are not critical, market sources reported.
However, long-term power outages could lead to a processing shutdown, which is already critical for the recycling industry, according to crushers.
“Factories will not be able to operate without a stable network. Shutting down a plant is a very serious matter,” a source at a crushing plant told us.
However, rolling blackouts are not happening in all regions and they depend on the number of enterprises in the area, their power consumption, and the state of power plants in that particular region.
Companies that are self-sufficient in electricity are also reporting voluntary reductions in consumption to reduce the load on the power grid.
The situation can change at any time, depending on whether Russia continues its attacks on Ukraine’s energy sector, something which cannot be predicted.
