Ukraine will face an electricity shortage of 2500-4500 MW in winter – Longobardo

In winter, the Ukrainian power system will face a shortage of electricity of 2500-4500 MW, depending on weather conditions. Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, made such forecasts in an interview with Forbes.

According to him, since the beginning of the full-scale war, the company has cut its electricity consumption by almost half, from 450 MW to 250 MW. Despite this, the company has to cover a significant demand for electricity through imports.

“We will import to power the main equipment. But the cost of this electricity will be prohibitive. To reduce consumption, we will shut down one of the two blast furnaces in operation starting in November,” said the CEO of ArcelorMittal Kryvyi Rih.

Currently, the company has no plans to invest in autonomy, as the company’s electricity needs are too high to be met by its own generation.

“Before the Russian invasion, we were considering purchasing a wind farm to run on green electricity. Strategically, we are not abandoning this idea. We are talking to energy companies to see if they are interested in building a wind farm or solar power plant near Kryvyi Rih under a long-term contract with us. We need a partner,” Mauro Longobardo emphasized.

The company is studying the electricity needs that will arise after the introduction of electric arc furnaces for the production of low-carbon steel targeting the EU market. Ukraine’s integration into the European Union has created a need to adapt to European standards. Although the EU market was not the company’s main focus before the war, the strategy is now being revised, and the EU is becoming a key priority.

According to the pre-war plan, ArcelorMittal Kryvyi Rih was to undergo a $2 billion reconstruction for green steel production in 2022-2027.

“It was a plan agreed with the group’s management. After the war is over, we will adjust it slightly, but in general terms it will remain the same – $2 billion over five years,” summarizes the company’s CEO.

As GMK Center reported earlier, the cost of production at ArcelorMittal Kryvyi Rih has increased by 40% since 2021, while product prices have fallen. In such circumstances, the company is losing competitiveness in traditional markets – in the Middle East, North and West Africa – and is reorienting itself towards European consumers. The main factors include rising energy costs and high logistics costs.

Share
Published by
Masha Malonog
Tags: electricity ArcelorMittal Kryvyi Rih Ukraine’s iron and steel industry
  • Companies

BYD has chosen voestalpine as its steel supplier for its Hungarian car plant

Chinese car manufacturer BYD has signed a strategic cooperation agreement with leading European steel producer…

Sunday June 29, 2025
  • Companies

Tenaris has begun construction of its second wind farm in Argentina

Tenaris has announced the start of construction of its second wind farm in Argentina, La…

Saturday June 28, 2025
  • Companies

Metinvest has created protective armor for Patriot air defense systems

As part of the Steel Front initiative, Metinvest Group has manufactured and installed special protective…

Saturday June 28, 2025
  • Companies

Arvedi Group raises €900 million to expand production and decarbonize

Italian steel company Arvedi Group has raised €900 million in financing to implement a large-scale…

Friday June 27, 2025
  • Global Market

Domestic demand for steel in China continues to fall

Domestic demand for steel in China, according to market participants' estimates, continued to fall in…

Friday June 27, 2025
  • Industry

Construction works performed in Ukraine in January-April fell by 13% y/y

The index of construction work performed in Ukraine in January-April 2025 decreased by 13% compared…

Friday June 27, 2025