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.
From June 30, Ukraine began exporting electricity to Romania at a capacity of 100 MW, Prime Minister of Ukraine Denys Shmygal announced.
“Today, from 1 a.m., such exports went towards Romania. The initial volume is 100 MW,” he wrote on his telegram channel on Thursday.
He noted that in the first day alone, the state-owned company Ukrenergo earned UAH 10 million by selling access to the interstate section for export, and potentially Ukraine could earn more than UAH 70 billion a year from this.
“The potential for the export of Ukrainian electricity to Europe is up to 2.5 GW. Under this scenario, the state will be able to receive more than UAH 70 billion a year,” Shmyhal said.
The prime minister stressed that the energy visa-free regime with the EU, which began in March this year, gives its very visible and practical result, and the energy sector will become one of the drivers for the recovery of the Ukrainian economy, as it has already become a driver for integration into the EU.
According to the data on the ENTSO-E website, physical exports from Ukraine to Romania are made on June 30 with a flat schedule of 100 MWh.
As reported, Ukrenergo earned more than UAH 10 million at the first auction for the sale of a section to Romania on June 30, and almost UAH 14 million at the second auction, on July 1. The section was divided respectively by 5 and 6 companies. A total of 8 and 10 companies participated in the auction, respectively.
Ukrainian and European energy systems have been operating synchronously since March 16. On June 27, Europe opened electricity exports from Ukraine, which was supposed to start on June 30.
The average price of access to the interstate cross-section for the export of 100 MW of electricity to Romania as of June 30 at UAH 4,200/MWh became a record, and the auction itself for its redemption, held for the first time after the opening of exports by Europe, proves the ability of Ukraine to earn billions of hryvnias on this, Board Chairman of NPC Ukrenergo Volodymyr Kudrytsky said.
“This is the first auction for access to the interstate cross-section after the synchronization of the Ukrainian and European energy systems, and record UAH 4,200 per MWh of access. In just one day, the state-owned company Ukrenergo earned UAH 10 million,” Kudrytsky wrote on his Facebook on the night of Tuesday to Wednesday.
He suggested that if the export capacity was increased to 1,000 MW and auctions were held to buy access to interstate cross-sections at the same level, the state could earn up to UAH 100 million per day, or UAH 36 billion per year. Accordingly, 2,000 MW can bring the state about UAH 72 billion a year, the head of Ukrenergo said.
“This is the price of European rules and the transparency and competitiveness of the auction procedure, as opposed to the traditional desire to ‘steer,’ which can multiply UAH 72 billion by zero. And that is why Ukrenergo will always actively profess and defend these principles – a deviation from them will cost the state very dearly,” he stressed.
As reported, on June 30, the commercial export of the first 100 MW of electricity to Europe will start after the synchronization of the Ukrainian and European energy systems, agreed by ENTSO-E on June 27. At first, the resource will be supplied to Romania, then the directions to Slovakia and Hungary will be opened, but in general, the capacity for export is still 100 MW. In a month, Ukrenergo expects an increase in exports.
In a few days, Ukraine will start exporting electricity to the synchronous zone of Continental Europe, Volodymyr Kudrytsky, Board Chairman of NPC Ukrenergo, has said on his Facebook page on Tuesday.
“ENTSO-E confirmed on June 27 that Ukrenergo, together with TSOs [Transmission System Operators] of neighboring countries, has successfully met six technical conditions for opening the first 100 MW of electricity exports from Ukraine to Europe. Ukraine can also import this amount of European electricity if necessary,” Kudrytsky wrote.
According to him, today Ukrenergo will hold an open auction for access to the interstate section, at which all electricity producers and other participants will be able to participate.
“This decision finally breaks the ‘aquarium’ of the closed Ukrainian energy market and at the same time brings us closer to full integration into the European energy space,” the head of Ukrenergo stressed.
He noted that in terms of the timing of the opening of exports from the power system newly attached to ENTSO-E, this is an unprecedentedly quick decision. Under the 2017 synchronization agreement, commercial exports from the Ukrainian power grid were to open only one year after the trial synchronization. Ukraine has reached an agreement to open commercial electricity exchanges in three months.
Kudrytsky also saw a certain symbolic coincidence in the date of the ENTSO-E decision on Ukrainian exports.
“Exactly five years ago, Ukrenergo signed the historic agreement with ENTSO-E, thanks to which the Ukrainian energy system is now synchronized with the European one. This agreement set the conditions for future integration with the continental European energy grid, which was to take place in 2023. We achieved the result a year and a half earlier,” the head of Ukrenergo summed up.
Andriy Gerus, Chairman of the Verkhovna Rada Committee on Energy, Housing and Utility Services, said at a press conference on Tuesday that Ukraine would start exporting electricity to the synchronous zone of Continental Europe from July 1.
At the same time, Minister of Energy Herman Haluschenko specified that the export of electricity would start on June 30.
The same information was posted on its website by ENTSO-E.
“The start of commercial electricity exchange with the Ukraine/Moldova power system is scheduled for June 30 at the Ukraine-Romania connection. It is expected that electricity trading on other connections [Ukraine-Slovakia, Ukraine-Hungary and Moldova-Romania] will start later,” the network said in a release on Tuesday.
According to him, the total trading capacity at the first stage will be set at 100 MW. After this initial phase, a gradual increase in trading capacity will be regularly assessed based on grid stability and security considerations, ENTSO-E explained.
Some 47.38% of electricity sold on the day ahead market (DAM) and intraday market (IDM) in May was produced from hydropower, and 20.34% from nuclear fuel, according to a report by JSC Market Operator on environmental aspects for May 2022.
“The share of electricity sold on DAM and IDM, produced from solar energy, amounted to 17.24% in May, from coal – 5.66%, from natural gas – 4.32%, from wind energy – 1.61%, from biogas – 0.99%, from biomass – 0.25%, and from fuel oil – 0.18%,” the report says.
According to the published data, in May, 1.63% of electricity was sold on the spot market, the source of which is not determined, and the origin of another 0.4% of electricity is unknown due to the failure of some market participants to provide relevant information, the company noted.
As follows from the report, in total, in May 2022, 31.5% less electricity was sold on DAM and IDM compared to April – 528,284 MWh versus 770,883 MWh, respectively, in 56.5% less than in March (1.243 million MWh), 88.5% less than in February (4.607 million MWh) and 89.3% less than in January 2022 (4.924 million MWh).
According to Market Operator, out of the total volume of electricity generated in January-May this year, 32.35% was produced from nuclear fuel, 26.58% – from coal, 14.33% – from hydropower, 7.72% – from natural gas, 4.74% – from wind energy, 3.74% – from solar energy, 2.06% – from fuel oil, 0.55% – from biogas, and 0.33% – from biomass.
