News
Ukrinterenergo is an active electricity market player
17.02.2010
The State Foreign Trade Company Ukrinterenergo has been an electricity market operator since 1994. On the instructions of the Ministry of Fuel and Energy of Ukraine, the Company has been exporting electricity to many European countries, including Hungary, Slovakia, Romania, Poland, Moldova, Belarus and others for over 15 years. It has proved to be a reliable and efficient Ukrainian electricity supplier.
Even in 2009, despite the crisis developments connected with the slump in prices on the European power markets due to the financial turmoil that brought about the decline in manufacturing output and, consequently, in demand for electricity, as well as irrespective of advance in price on the Ukrainian wholesale electricity market, which rose by 10% notwithstanding similar crisis developments in Ukraine, Ukrinterenergo continued delivering the Ukrainian electricity, particularly from the Burshtyn TPP Island, to the markets of Europe at the high quality European level and following accepted international rules.
Up to the present day, in accordance with the Decision of the Cabinet of Ministers of Ukraine and the Ministry of Fuel and Energy of Ukraine, the Company has been ensuring the solution of special questions of the Burshtyn TPP Island operation as a part of European Network of Transmission System Operators for Electricity (ENTSO-E, before 01.07.2009 – UCTE) under the conditions of non-reformed electricity and capacity markets in Ukraine, which allowed to fulfill the UCTE (ENTSO-E) norms, rules and requirements.
To such issues, among others, are related the issues connected with accounting and registration of technological flow, compensation of unplanned supplies and electric power losses, capacity reservation in power systems of neighbor countries for usage in cases of emergency situation of the Burshtyn TPP Island, and so on.
At present, the processes of power market reforming are under way in Ukraine with the purpose of Ukraine’s approach to the European Union. One of the first steps in this (even before system services’ market establishment) was adoption on 19.03.2009 and further realization of the Law of Ukraine No. 1164-VI On Introduction of Amendments to the Law of Ukraine On Electric Power Industry, according to which the access to cross-border transmission capacity of Ukraine’s interstate power grids for electricity export is provided on the auction terms on condition of available transfer capacity of Ukraine’s interstate power grids.
In compliance with the amendments specified in the legislation, the normative basis has been established, not without direct participation of SFTC Ukrinterenergo, which is necessary for starting of the auctions’ holding with regard to access to the transmission capacity of Ukraine’s interstate power grids for electricity export, in particular:
· by the Order of NERC No.986 dated 27.08.09 the standard contract for access to transmission capacity for electricity export of Ukraine’s interstate power grids was approved;
· by the Order of NERC No.1205 dated 22.10.09 the Procedure for distribution of funds to be received under the concluded contract for access to transmission capacity for electricity export of Ukraine’s interstate power grids was approved;
· by the Order of NERC No.1207 dated 22.10.09 the Procedure for the conduct of auctions for access to transmission capacity for electricity export of Ukraine’s interstate power grids was approved;
Thus, as early as 2010 the electricity deliveries from Burshtyn TPP Island have been executed by Ukrinterenergo based on the results of the auctions conducted by SE NPC Ukrenergo taking into account the requirements of the “Procedure for the conduct of auctions for access to transmission capacity for electricity export of Ukraine’s interstate power grids”.
Professional qualification, competence, the unique experience gained by the Company’s staff members and the creative approach to performing the assigned tasks give the possibility to maintain and strengthen its position in the market, providing steady development, and to take part in long-felt need of Ukrainian electricity market restructuring, which current state of development doesn’t fully permit to complete the approach of Ukraine closer to the European Union, as far as even the pricing environment on foreign markets cannot be considered owing to the presence of exclusive wholesale electricity supplier.
In spite of the new players with huge financial resources and private capital, Ukrinterenergo continues to hold a high position in the export market of Ukrainian electricity.
To secure the power sector interests in the foreign trade, Ukrinterenergo is constantly seeking ways to expand and increase the export volume of Ukrainian product, to raise its competitive ability as well as to build up and strengthen the export potential of Ukraine in today’s tangled economical situation.