Business news from Ukraine

Business news from Ukraine

Export of electricity to Europe brought Ukraine almost UAH 3 bln in two months

31 August , 2022  

The income of NPC Ukrenergo from the sale of the interstate section for the export of electricity to Romania and Slovakia from June 30 to August 31 rose to UAH 2.94 billion.
According to the results of daily auctions held by Ukrenergo in these areas, in the last ten days of August, proceeds from the sale of cross-sections increased by UAH 1.02 billion due to an increase in electricity prices in Europe, which directly affects the price of cross-sections. As a result, exports to Romania for ten days cost UAH 502.1 million, which is 39% higher than in the third week of August, to Slovakia – UAH 519.5 million (63% higher than the average daily cross-sectional cost in the third week of August).
The most expensive was the section on the last day of August – in Romania 56.8 million hryvnia, in Slovakia 59.4 million hryvnia.
On the same date, a new record was also set for the maximum hourly price of a section – UAH 22.1 thousand / MWh in Romania and UAH 23.7 thousand / MWh in Slovakia (previous records were UAH 21.7 thousand, respectively) /MWh and 21.27 thousand UAH/MWh).
According to Energy Reform calculations, the average hourly price of a section for ten days of August amounted to UAH 16.7 thousand / MWh in Romania, and UAH 17.3 thousand / MWh in Slovakia.
According to the Market Operator, as of August 31, the average electricity price on the day-ahead market (DAM) in Romania is EUR684/MWh (in terms of the current euro exchange rate, about UAH 25,000/MWh) , Slovakia – EUR 673 / MWh (about 24.6 thousand UAH / MWh). In Ukraine, the electricity price of the BASE period on DAM is EUR 86/MWh (about UAH 3.14 thousand/MWh).
The most active exporter is the state-owned energy trader AK ECU, which entered the market on August 19. Of the possible 3,000 MWh per day, the company buys a section for export via the Romanian direction of 1488 MWh per day (62 MW per hour of the day), along the Slovak route – for the supply of 1512 MWh per day (63 MW per hour).
The second largest exporter in both directions remains DTEK Zakhidenergo, which bought out during this period mainly a cross-section for deliveries from 1,000,000 MWh to 1,200 MWh.
Most of the remnants of the cross-section were bought out by Latest Technologies 3000, Ukr Gas Resource, Electric Trading Group, and DE Trading. Many companies participated in auctions without results.
The state-owned PJSC “Ukrhydroenergo” continued to buy a section of 100 MW on a flat schedule for the supply of electricity to Moldova (a total of 2400 MWh per day).
The section to Poland continues to buy back at daily auctions in addition to the 147 MW of capacity bought out at the monthly auction of DTEK Zakhidenergo – on August 22-31 at 63 MW every hour (1512 MWh per day),
Sections from Slovakia, Romania and Moldova at daily auctions for the last ten days of August traditionally remained not redeemed.
The section price at all auctions, except for exports to Romania and Slovakia, is 0 UAH/MWh.
As reported, on July 28, ENTSO-E increased its capacity for export to Romania and Slovakia to 250 MW. Ukrenergo held a daily auction on the same day, dividing the capacity equally. A month earlier, commercial exports began with 100 MW to Romania, from July 7 they were shared with Slovakia for 50 MW.
According to the Ministry of Energy, technically, Ukraine can already export at a capacity of 1.5-1.7 thousand MW and expects an increase in exports over time.
The head of Ukrenergo, Volodymyr Kudrytsky, noted that he expects a decision to increase exports from the Europeans on September 2.

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