Since the beginning of the Russian aggression, NPC Ukrenergo has received assistance in the form of supplies of equipment and materials from five European transmission system operators (TSOs) represented by the Belgian Elia, the Polish PSE, the Italian Terna, as well as the German Amprion and 50 Hertz, the company reported in its Telegram channel on Tuesday.
“Since the beginning of the war, European TSOs have been helping us at their own request so that our repairmen can quickly restore networks destroyed by enemy rocket attacks. They personally make sure that the equipment is delivered as quickly as possible,” the company said.
The last batch of aid and equipment came from the Belgian Elia.
“Belgian colleagues have provided new generators, insulators for overhead power lines, wire and couplings for their connection with a total cost of several hundred thousand euros,” the company said.
As the company said, the very first aid came in March from the Polish system operator PSE, which also provided transformer equipment to the Ukrainian side at the end of May, including from its own emergency stock.
“In addition, Polish colleagues ordered and paid for the manufacture of 70 km of wire, which our repairmen are already using today, specifically for Ukrenergo,” the company added.
In July, Vitaliy Krush, an employee of one of the largest German TSOs Amprion, delivered two generators to the Ukrainian border for Ukrenergo substations.
“Also, equipment for the Ukrainian system operator was provided by another German operator 50Hertz and Italian Terna. Various equipment is expected from other OSB and international partners,” the company said.
As explained in Ukrenergo, system operators, like no one else, understand the importance and complexity of the rapid restoration of infrastructure in Ukraine.
“We greatly appreciate every contribution to the fact that our mobile repair teams can quickly restore damaged networks, replace transformers destroyed by enemy missiles,” Ukrenergo said.
Repair crews of NPC Ukrenergo are already working to eliminate the consequences of a Russian terrorist attack on energy infrastructure facilities in the central and northern regions of Ukraine.
“The situation in the power system is under control. However, the Ukrenergo dispatch center does not rule out the possibility of introducing emergency shutdown schedules. Therefore, it is important to save electricity consumption throughout the country, especially in the evening hours,” the company said in a statement.
The European Bank for Reconstruction and Development (EBRD) will provide transmission system operator NPC Ukrenergo with EUR97.3 million in support of liquidity in the face of Russia’s military aggression.
“The EBRD and the Ukrainian authorities have agreed to change the purpose of the remaining EUR97.3 million from an existing loan to Ukrainian electricity transmission system operator Ukrenergo. The new purpose of the funds is to maintain the company’s liquidity,” the bank said in a press release on Friday.
It clarifies that in this way the bank will repurpose part of the EUR149 million loan provided in 2019 to support liquidity to modernize key elements of the electricity transmission infrastructure in order to support the stable operation of the system and synchronize with European electric networks, as well as to help Ukraine bring its legislation and operating principles in accordance with the requirements of the Third Energy Package of the EU.
“Due to the war, Ukrenergo has urgent liquidity needs, so the company has asked to repurpose the undrawn funds. This liquidity support from the EBRD will ensure the stable operation of the Ukrainian energy system, nuclear and renewable energy generation capacities, as well as the supply of electricity to industrial consumers and population,” the release notes.
The EBRD notes that during the war, the company faced significant customer defaults and a 30% drop in electricity consumption, resulting in a loss of revenue.
At the same time, they specified that up to half of EUR97.3 million would be guaranteed by a sovereign donor from the G7 countries.
The bank noted that the support provided is part of the EUR1 billion investment it promised before the end of the year to support the Ukrainian economy on the terms of risk-sharing with donors and partners.
The release recalls that in May Ukrenergo already received EUR50 million as part of the reassignment of a previously granted loan.
Ukrenergo reported that these funds were used to repay debts in the ancillary services market, and also noted that it was counting on new reprofiling of loans to support liquidity, in particular, to repay debts in the balancing market.
In the first 27 days of exporting electricity to the EU, NPC Ukrenergo earned over UAH 500 million from the sale of access to interstate power lines at cross-border sections with Romania and Slovakia, the company’s press service reported on Monday.
“This is the result of high competition at auctions for access to interstate power grids, which Ukrenergo conducts according to transparent European rules. From six to 13 participants participated in each of the auctions,” the report says.
It clarifies that in the direction of Romania there were ten or more companies in most auctions, and more than six in the direction of Slovakia, while in total more than 200 participants have already registered for participation in the auctions.
The company notes that the export of electricity to the EU countries allows the state and electricity producers to earn funds to prepare for the heating season: buy coal, finance repairs of power units of power plants and grids. In particular, at present, the company sells at auctions all available transmission capacity with Romania and Slovakia – 100 MW, which is in demand, since the price of electricity in the EU exceeds the Ukrainian one by several times.
The company’s income from access to interstate grids during the war can be used to settle the balancing market to give electricity producers an additional resource to prepare for winter. To this end, amendments to the law on the electricity market are expected.
According to Ukrenergo, the weighted average daily price of access to sections with Romania and Slovakia amounted to UAH 7,700 per MW over 24 days. At the same time, the highest weighted average price was at auctions for the delivery day on July 26 – UAH 14,600 per MW. At the same time, in previous years, such a record did not exceed UAH 3,000/MW.
Proceeds from sales of NPC Ukrenergo’s available interstate transmission capacity for electricity exports to Romania and Slovakia amounted to UAH 200.3 million since the opening on June 30.
These data are based on the results of the latest auctions in the Romanian and Slovak directions, held on July 10 with delivery on July 12. According to them, the section price to Slovakia was UAH 10.3 million and to Romania – UAH 10.2 million.
Traditionally, the most active participants in these auctions are DTEK Zakhidenergo, ERU Trading, and Le-Trading Ukraine.
At the same time, Energoatom began to participate in auctions for the export of electricity to Slovakia from the moment they started on July 5 for supplies on July 7 (two days before delivery). For the first time, the company bought almost 500 MWh of the possible 1200 MWh for export at the auction on July 9 with delivery on July 11. The plans for July 12 are to export 131 MWh.
At the same time, Ukrhydroenergo, which for the first time bought out a section to Slovakia for export of 148 MWh on July 9, and then for export of 110 MWh on July 10, ended the last two auctions with delivery on July 11 and 12 to no avail.
Auctions with delivery on July 10 became an anti-record at the cross-section price: for Slovakia, it fell on this day to UAH 11/MWh with delivery at 12-16:00, and the highest was UAH 2,390 /MWh at 23:00. For Romania, the lowest price was UAH 100/MWh at 13-14:00, the highest was a little over UAH 2,200/MWh with delivery at 21:00-23:00. For comparison: according to the results of all auctions, the price for Romania was the lowest on July 3 – UAH 1,380/MWh.
It is noteworthy that Ukrhydroenergo reserved most of its daily resource at the lowest prices in both directions.
In general, in both directions, the price of a section on July 10 amounted to a little more than UAH 2 million.
As of July 11, this figure was already ten times more – UAH 20.5 million.
The section from Slovakia and Romania for July 10-12, as before, was not reserved.
The section to Poland continues to be purchased at daily auctions in addition to the 147 MW capacity purchased at the monthly auction by DTEK Zakhidenergo – at 65 MW every hour (1,560 MWh per day) on July 10-12.
The daily cross-section to Moldova on July 10-12, according to the traditional scenario, was divided by Energoatom, which bought out a cross-section for export of 9,400 MWh per day, and Ukrhydroenergo – 2,400 MWh per day.
The section price at all auctions, except for exports to Romania, is UAH 0/MWh.
Over seven days of daily auctions by NPC Ukrenergo for distribution of access to a cross-section for exporting electricity to Romania, the price of a cross-section increased to UAH 106 million.
Including, according to the results of the auction on July 6, the seventh day after the opening of exports to Romania, 8 winners of the auction, who divided the daily cut, must pay a total of UAH 19.8 million.
The highest cross-section price at this auction was the price at 23:00 – UAH 10.9 thousand UAH/MWh, which was shared by DTEK Zakhidenergo (by 60 MWh), Latest Technologies 3000 (by 15 MWh). h), ERU Trading (by 14 MWh), Energoatom (by 10 MWh) and Smart Trade Energy (by 1 MWh). The absolute record of the week is still the price of 11.67 thousand UAH/MWh. At the same time, experts note that traders in many positions are ready to pay for a cross-section significantly higher than the selling price of a resource in Romania for these hours.
In general, this time, as in previous auctions, more than half of the daily capacity was bought by DTEK Zakhidenergo (for export, a total of 1,377 MWh out of a possible 2,400 MWh per day).
“Le Trading” Ukraine bought a section for export of 281 MWh, “ERU Trading” – for 220 MWh, “Energoatom” – for 239 MWh (yesterday it was only 30 MWh), “Latest Technologies 3000” – by 198 MWh, Nexttrade by 45 MWh, Smart Trade Energy by 24 MWh and DE Trading by 16 MWh.
Once again, the state-owned Ukrhydroenergo participated in the auction without results.
Also, Artlex-Energy and Ukr Gas Resource did not buy anything in this auction.
From Romania on July 6, the section was not reserved.
The section to Poland continues to be purchased at daily auctions in addition to the 147 MW capacity purchased at the monthly auction of DTEK Zakhidenergo – as of July 6, at 65 MW per hour (1560 MWh per day).
According to yesterday’s scenario, the daily cross-section to Moldova on July 6 was divided by Energoatom, which bought out a cross-section for export of 9400 MWh per day and Ukrhydroenergo – by 2400 MWh per day. Another 1 MW per hour (24 MWh in total) was bought by Energy Lab Ukraine, which had not previously participated in the auction.
The section price at all auctions, except for exports to Romania, is 0 UAH/MWh.
As reported, the import-export of electricity to Romania for 100 MW started on June 30. The number of auction winners varies from 5 to 9 participants.
On June 27, ENTSO-E agreed to start commercial exports of the first 100 MW to Europe. First, the resource will be supplied to Romania, then the directions to Slovakia and Hungary will be opened, but in general, the export capacity is 100 MW. In a month, Ukrenergo expects an increase in exports.
