Business news from Ukraine

Ukrainian energy trader “ECU”, if necessary, is ready to stop export of electricity

JSC “Energy Company of Ukraine” is ready for any developments in the electricity market, in particular, to stop exports, said Vitaliy Butenko, General Director of the company.
“The situation in the energy sector of Ukraine today remains quite difficult in the context of the war. The company is ready for any scenario, including the cessation of exports,” Butenko said in a comment to the Energoreforma Internet portal on her request.
At the same time, he noted that the strategy of ECU JSC is primarily aimed at working in the domestic market.
“At the same time, we took advantage of the opportunity to export electricity, which made it possible for the state to earn additional profit. For 1.5 months, the income of three state-owned companies from the export activities of ECU amounted to almost UAH 2 billion, and the state’s share in electricity exports to Romania and Slovakia in September reached about 44%,” Butenko emphasized.
Regarding the loan in the amount of UAH 500 million, provided to the company NAEK by Energoatom, Butenko noted that its repayment does not depend on the presence or absence of exports.
“In accordance with our obligations to SE NAEK Energoatom, the state energy trader will repay the loan by the end of this year,” the head of ECU stressed.
As reported, a source of Energy Reform in the government said that from October 10 to October 15, a decision could be made to stop electricity exports to Europe, currently carried out at a capacity of 300 MW. The reason for this is the shortage of power generating capacities, associated, in particular, with the shutdown of all six units of ZNPP, the repair of 1.5 units at other NPPs and the possible withdrawal of another unit for repair, which leads to excess coal consumption, as well as a large number of TPP units in repair.
JSC “Energy Company of Ukraine” (JSC “EKU”), 100% of whose shares belong to the state, on August 17 for the first time entered the export of electricity in the Romanian and Slovak directions, from October 1 it began to export electricity to Poland.
Receipts from ECU by the state-owned NPC Ukrenergo (as a fee for the cross-section and transmission of electricity), SE Guaranteed Buyer (as part of the PSO for the population) and NNEGC Energoatom (payment for electricity) from August 19 to 13 September amounted to almost UAH 1.542 billion.
Earlier, Butenko said that state investments in ECU start-up capital, provided to him in August by NNEGC Energoatom in the form of repayable financial assistance in the amount of UAH 500 million, would be returned by the end of 2022.
According to ECU estimates, these investments can bring UAH 8.2 billion in income to state-owned companies by the end of the year.
JSC “ECU” is a diversified energy supply company that carries out operations for the purchase, sale, supply and market optimization of energy consumption for commercial customers. While the company supplies for export, however, it plans to work also in the domestic market. 100% of the company’s shares belong to the state, the powers to manage them are exercised by the Ministry of Economy.

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Romania, Moldova and Ukraine will sign an agreement to increase electricity trade volumes

Ukraine, Moldova and Romania have agreed to sign an agreement to increase cross-border capacity to increase electricity trade, Ukrainian Foreign Minister Dmytro Kuleba said.
“We reached several important agreements today to develop our relations in the energy sector, and our teams will continue to work on their implementation. In particular, we agreed to sign a trilateral intergovernmental agreement on increasing cross-border capacity to increase the volume of electricity trade,” Kuleba said at the meeting. press conference in Odessa on Thursday.
Kuleba drew attention to the fact that the meeting in the format of the Ministers of Foreign Affairs and Ministers of Energy of Ukraine, Moldova and Romania is taking place for the first time.
“Three of our countries, and immediately foreign ministers and energy ministers. There is a very clear reason and goal for this – we want to build qualitatively new relations in the energy sector between our three countries, and this will be important not only for energy, but also for security and prosperity in our region,” the minister stressed.
Currently, Ukraine exports electricity to Moldova in the amount of about 165 MWh, with a possible maximum of 600 MWh, and to Romania – 150 MWh.

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Ukraine in January-August increased revenue from electricity exports to $279 million

In January-August 2022, Ukraine increased its revenue from electricity exports by 1.7 times (by $115.664 million) compared to the same period in 2021, to $278.75 million, according to the State Customs Service.
According to Interfax-Ukraine estimates, over eight months electricity was supplied to Poland for $92.689 million, Slovakia – for $59.364 million, Hungary – for $44.688 million, other countries – for $82.009 million.
In August this year, electricity export revenue amounted to $73.112 million compared to $27.474 million in August 2021.
In addition, in January-August 2022, Ukraine imported electricity for $119.067 million against $59.394 million for the same period last year. Including from Belarus – by $100.414 million (in January-February), Belgium – by $12.259 million, Moldova – by $4.695 million, other countries – by $1.698 million.
Last month, Ukraine imported electricity for $11.135 million compared to $0.336 million in August 2021.
As reported, Ukraine in 2021 reduced its revenue from electricity exports by 8.5% (by $23.89 million) compared to 2020, to $256.941 million. In addition, Ukraine imported electricity by $87.345 million in 2021 against $131.605 million for 2020th.
Ukraine in 2021 reduced the export of electricity by 26.5% (by 1 billion 258.7 million kWh) compared to 2020 – to 3 billion 495.4 million kWh, import – by 25.9% (by 591.3 million kWh), up to 1 billion 693.6 million kWh.

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

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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Ukraine for 7 months increased revenue from electricity export by 1.5 times

In January-July 2022, Ukraine increased its revenue from electricity exports by 1.5 times (by $70.026 million) compared to the same period in 2021, to $205.638 million, according to the State Customs Service.
According to the Interfax-Ukraine agency, over seven months electricity was supplied to Poland for $65.056 million, Slovakia – for $48.968 million, Hungary – for $40.408 million, other countries – for $51.206 million.
In July this year, electricity export revenue amounted to $35.64 million compared to $27.373 million in June 2021.
In addition, in January-July 2022, Ukraine imported electricity for $107.931 million against $59.058 million for the same period last year. Including from Belarus – by $100.414 million (in January-February), Belgium – by $4.778 million, Moldova – by $1.041 million, other countries – by $1.698 million.
Last month, Ukraine imported electricity for $5.816 million compared to $0.461 million in July 2021.
As reported, Ukraine in 2021 reduced its revenue from electricity exports by 8.5% (by $23.89 million) compared to 2020, to $256.941 million. In addition, Ukraine imported electricity by $87.345 million in 2021 against $131.605 million for 2020th.
Ukraine in 2021 reduced the export of electricity by 26.5% (by 1 billion 258.7 million kWh) compared to 2020 – to 3 billion 495.4 million kWh, import – by 25.9% (by 591.3 million kWh), up to 1 billion 693.6 million kWh.

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Ukraine to supply electricity to Moldova in August

Vice Prime Minister, Minister of Infrastructure and Regional Development of Moldova Andrei Spinu said that next month Moldova will buy 30% of the missing electricity from two Ukrainian companies.
The Ukrainian companies Energoatom and Ukrhydroenergo will supply Moldova with 30% of the electricity it lacks in August. Of the total capacity, 20% will go to Energoatom, and 10% to Ukrhydroenergo at the same price. Both companies will supply electricity at the same price – $77/MWh,” Spinu wrote on his Telegram channel page on Friday.
He recalled that 70% will be supplied by the Moldavskaya GRES (located in Transnistria and owned by the Russian group Inter RAO UES) at a price of $59.9/MWh, according to the contract concluded for July-August. According to the Deputy Prime Minister, the weighted average price of supplies in August will be $65.03/MWh.
“Such a price makes it possible to maintain the electricity tariff for citizens and the economy at the same level,” Spinu said.
Earlier it was reported that Moldova buys electricity from the Moldovan state district power station. At the same time, since March, contracts are concluded for only one month. This is due to the energy crisis and unstable gas prices. Because of Gazprom’s reduction of gas supplies to Transnistria in May, Moldavskaya GRES warned Chisinau that it would be able to supply only 70% of the required amount of electricity to the right bank of the Dniester. Since May, Moldova has been buying the missing amount of electricity from Ukraine.

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