Over the past 4 weeks UEEX hosted 12 auction sessions for the sale of state generation resources and 16 commercial sessions. The most active companies initiating the bidding were the Guaranteed Buyer, companies from the DTEK LLC, KALUSKA TPP-NOVA, Ukrhydroenergo, and Centerenergo. In total these are 11 companies that initiated the starting positions.
On June 5, for the first time the Guaranteed Buyer formed positions for sale in the commercial section in the mode of trading in ratios. The company managed to sell 427 MWh by a factor of 1 from the price of day-ahead market.
There were also two auction sessions on the sale of electricity for PSO purposes, where the Guaranteed Buyer purchased a total of 3.83 million MWh resources of Energoatom and Ukrhydroenergo.
Sale of electricity at free prices
Electricity was sold in both trade zones. All types of loads offered by UEEX including block positions were presented at the auction. During this period the average selling price of the base load in the IPS of Ukraine was 1250 UAH, peak - 1176 UAH, off-peak - 955 UAH. for MWh without VAT.
In the trade zone of Burshtyn TPP, the base load was sold at the price of UAH 1,500 and off-peak load at an average price of UAH 1,025 for MWh without VAT.
The general level of generation during the last month was generally negative, but in early June there was a positive trend. Thus, as of June 11, the total generation level was 15.21 GW, which is 0.5 GW more than on May 14. In general, growth was observed in many types of generations, namely HPPs and PSPs, RES (due to favorable weather conditions, namely the flooding of rivers after heavy rains and sunny weather) and thermal power plants. The trend of decreasing generation continues at NPPs.
Market prices for the day - ahead in the trading zone of the IPS of Ukraine have been generally volatile for the last four weeks. Compared with May, the level of weighted average prices increased significantly. For example, the minimum price in May was UAH 659.72 and the minimum price in June was UAH 984.91. This can be explained by a structural shift in the short-term balance of supply and demand which led to lower prices.
Such pricing is a reflection of a rigid supply-oriented market. Over the past two weeks the prices of day-ahead market in the IPS of Ukraine have remained growing.
In the trade zone of Burshtyn energy island did not observe significant price volatility. In general the average value of the weighted average price in the IPS of Ukraine for the last four weeks was 1107.97 UAH / MWh in BEI - 1622.36 UAH / MWh.
The volume of trade showed a downward trend. Thus, with the delivery on June 12 at day-ahead market, purchase and sale agreements in the amount of 68 thousand MWh were concluded in the IPS of Ukraine and 7.6 thousand MWh - on the territory of Burshtyn energy island. There was a surplus of electricity in both trade zones. Moreover, in the IPS there was a surplus at all hours of the day, and in the trade zone Burshtyn energy island showed a deficit at night.
Spot prices in Western Europe were generally volatile and there was a slight upward trend.
Electricity prices on European hubs, EUR/MWh
Thus, on June 11, the price of basic electricity in France was 24.06 euros / MWh, in Hungary - 29.63 euros / MWh, in Poland - 46.0 euros / MWh. In July electricity was traded at prices in the range of 30-50 euros / MWh.
Demand for electricity in European markets continues to recover as de-escalation measures continue in response to the COVID-19 pandemic.
Over the past four weeks there have been about 150 tenders for the purchase of electricity by budgetary institutions. In total electricity worth UAH 169.5 million was purchased from the top 15 largest tenders. Price fluctuations were pronounced especially in the largest tenders.
But in general the average price was UAH 1.65 / kWh. The largest contract was awarded to EC ENOLL LLC. It will supply the Kakhovka interdistrict water management department with 48.9 million kWh electricity at the starting price of UAH 1.62 / kWh. Prices ranged from UAH 1.29 to UAH 3.47 kWh.
The Cabinet of Ministers of Ukraine signed a Memorandum of Understanding on the settlement of problematic issues in the field of renewable energy. The document stipulates that RES producers accept the conditions for voluntary restructuring of "green" tariffs, which provides for their reduction. In particular, for electricity facilities producing solar energy, tariffs are expected to be reduced by 15% and for facilities producing electricity from wind energy - by 7.5%. For its part, the Cabinet of Ministers noted, the Ukrainian authorities are committed to taking all measures to ensure timely current payment of the Guaranteed Buyer and repayment of existing debts to RES producers who have accepted the terms of the restructuring.
At the end of May, there was a drop in the weighted average price on the day ahead market in the IPS of Ukraine, probably caused by market manipulation. Yes, the price dropped to UAH 660. for MWh. "The fall in prices is clearly artificial, as it does not reflect the actual demand and supply of electricity in the power system of Ukraine." - it is spoken in the statement of NEURC. To remedy the situation, the commission planned to introduce minimum price restrictions on the market - UAH 980 / MWh during the day and UAH 567 / MWh at night for the quarantine period and the month after.
The NEURC introduced new restrictions for traders and required them to report on fuel volumes. NEURC has obliged Ukrenergo to monitor transactions on the market of bilateral contracts and on the day-ahead market in order to identify cases of non-existent volumes of electricity for sale. In this case such a company will be deprived of the opportunity to participate in the wholesale segments of the electricity market for 7 days. The relevant decision was made at a meeting on June 3. The regulator made this decision at the suggestion of Ukrenergo.In addition, according to the decision of the NEURC heat generation is obliged to submit to Ukrenergo the day before the sale of electricity information on coal residues and contracted volumes, on the specific cost of electricity production and repairs of generating equipment. Sales volumes of electricity by TPP operators may not exceed volumes for the production of which there is enough fuel.
Coal stocks at warehouses