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Ukrenergo announces first long-term auctions for balancing energy system

The Ukrenergo national energy company announced on August 15 and 22 the first long-term auctions for the purchase of auxiliary services for balancing the energy system.

This is stated in the company's message, Ukrainian News Agency reports.

In particular, the company plans to buy services for the provision of various types of reserves, concluding contracts with the winners of the auctions for 5 years with a delay in providing the service for up to one year.

"At the first auction on August 15, the need for 99 MW will be put up. We will buy primary regulation services. In this auction, it will be possible to participate, mainly, energy storage systems - very fast and very maneuverable installations, capable of executing the dispatcher's command in 15 seconds. The second auction will take place on August 22. It is more massive, we will buy 1,000 MW: 579 MW is a load service, that is, the ability of new power plants to support the power system by increasing their output, and 421 MW is a symmetrical reserve. Gas piston, gas turbine installations and biomass power plants will be able to participate in this auction. These are stations that can be unloaded and loaded at the dispatcher's command within 15 minutes," said Volodymyr Kudrytskyi, the chairman of the board of the company.

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According to him, the winners of the auction will receive a fixed contract in euros with the possibility of postponing the provision of the service for one year.

"That is, the winners will have time until September 2025 to build a power plant or installation capable of balancing the energy system. At the same time, the tariff offered by Ukrenergo will be significantly higher than what operators of European energy systems pay," Kudrytskyi said.

According to him, these auctions will be a revolutionary step in the construction of distributed generation in Ukraine.

As Ukrainian News Agency earlier reported, Ukraine intends to build 1 GW of flexible gas generation in 2024 and another 4 GW in the coming years.

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Ukraine has lost 9 GW of capacity since the end of March due to russian shelling.

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