07-07-2022

What opportunities open up for electricity suppliers after the synchronization of the Ukrainian energy system with ENTSO-E?

From March 16, 2022 the Ukrainian energy system works synchronously with the ENTSO-E power grid of continental Europe. From this date, NEC "Ukrenergo" together with the system operators of neighboring countries began a step-by-step recovery of electricity exports:

Throughput capacity in the direction of Romania, Slovakia and Hungary in the first stage is limited to 100 MW and is also subject to daily analysis. In the future, it is planned to gradually increase the export of electricity in the amount of up to 650 MW, which was carried out by Ukraine even before the synchronization and the war to the EU countries through the Burshtyn energy island. To increase it to 1,860 MW (interconnections with ENTSO-E), a number of technical requirements will need to be met, among which, in particular, the installation of STATCOM and electricity storage systems to maintain the frequency in the system.

Producers and traders of the electric energy market of Ukraine showed considerable interest in new sales markets. This is indicated by the record prices at daily auctions in the direction of Romania, which are reported almost daily by NEC "Ukrenergo". Thus, as of July 5, the maximum crossing price is UAH 11,668/MWh at 9 p.m. CET, which is 4.4 times higher than the corresponding price on the Ukrainian market "one day ahead".

Until recently, only the Burshtyn energy island (Transcarpathia, part of Lviv and part of Ivano-Frankivsk regions) was synchronized with the European network of electricity transmission system operators (ENTSO-E), while the rest of the network was synchronized with the power systems of Russia and Belarus. Because of this situation, the access of many market participants to export-import operations was significantly limited. Now the entire power grid is synchronized with ENTSO-E, which means that:

Company Energy 365* is interested in gaining access to European markets in order to sell electricity to consumers under both bilateral contracts and electricity supply contracts.

The third energy package provides for the creation of pan-European gas and electricity markets and consumer access to the chosen supplier. This implies the presence of liquid wholesale markets, as well as efficient and unhindered access of suppliers to end-user markets.

For Ukraine, there are currently administrative and regulatory difficulties at both levels. They consist in the issues of the need to create a branch or register a separate legal entity, in issues of the licensing regime (European companies can agree to existing licenses), as well as in issues of taxation and energy supervision.

Despite the aforementioned difficulties of access to European energy markets, today there are many ways to use new opportunities to sell electricity to European countries both through a European counterparty and through the creation of your own company abroad.

* "Energy 365" LLC is an independent supplier of electricity and gas with a full range of services for all areas of business throughout Ukraine. The company has been working in the new electricity market since its inception.

Before
07-07-2022

Які можливості відкриваються електропостачальникам після синхронізації української енергосистеми з ENTSO-E?