Ukrainian Energy Exchange: bilateral contracts market
Last week, the UEEX held 16 auctions for the purchase/sale of electricity in the unilateral auction mode, including 3 in commercial sections and 13 in specialized sections. Among the initiators were: Energoatom-Trading, Ukrhydroenergo, DTEK Zakhidenergo, DTEK Dniproenergo, Starokostiantynivtsukor, Nizhnednistrovska HPP, Guaranteed Buyer, USPs and TSOs, etc.
Energoatom-Trading initiated the auctions, which resulted in the sale of 27216 MWh of base load at a weighted average price of 5100.58 UAH/MWh with a delivery period from October 2 to 4 and 4545 MWh at a weighted average price of 5000 UAH/MWh with a delivery period from October 11 to 31.
Ukrhydroenergo initiated auctions offering base load and block positions with different delivery periods for the first half of October. As a result of the auctions, the company sold 5880 MWh of base load at a weighted average price of 4706 UAH/MWh.
During the reporting period, DTEK Dniproenergo and Zakhidenergo initiated auctions in accordance with Article 66 of the Law of Ukraine “On the Electricity Market”, offering block positions and base load with a delivery period of the second half of October. DTEK Zakhidenergo sold 339950 MWh of block positions at prices in the range of 3640 - 4421.2 UAH/MWh and 96250 MWh of base load at a weighted average price of 4309.32 UAH/MWh. DTEK Dniproenergo sold 192,500 MWh. block positions at prices in the range of UAH 3,059 - 4,659.38/MWh and 38,500 MWh of base load at a weighted average price of UAH 4,370.31/MWh.
In addition, in the specialized section last week, Starokonstantinovtsukor and Nizhnednistrovska HPP initiated auctions in accordance with Article 66 of the Law of Ukraine “On the Electricity Market”, where they offered base load with delivery in October. As a result, the companies were unable to sell the offered volumes.
The Guaranteed Buyer initiated the auctions by offering block positions for daytime hours with a delivery period of the second decade of October. As a result of the auction, the company sold 10600 MWh of block positions at prices in the range of 3000 - 4001.75 UAH/MWh.
In the commercial sections, the companies bought/sold electricity to loads with individual profiles.
| Тype of trades | Sales volume, MWh |
|---|---|
| Auctions pursuant to Article 66 of the Law of Ukraine On Electricity Market | 704 841 |
| Commercial section | 11 593 |
| Special sessions for the sale of electricity generated from alternative energy sources | 10 600 |
| In total | 727 034 |
As of October 4, prices for the most commonly used types of sales schedules were formed, as shown in the chart.
Market operator: day-ahead and intraday markets
During the reporting period, the day-ahead market prices were volatile, ranging from 3746.30 to 5977.12 UAH/MWh. In general, the average weighted average price for the last week decreased by 13% compared to the same indicator of the previous week and amounted to 4798.05 UAH/MWh. The highest daily price amounted to 5977.12 UAH/MWh on September 29, and the lowest - 3746.30 UAH/MWh on October 3. The volume of sales for the reporting period of September 28 - October 4 amounted to 428.1 thousand MWh (-6%).
During the reporting period, prices on the IDM were volatile. The weighted average prices varied in the range of 2976.44 - 6835.39 UAH/MWh, and the average weighted average price for the reporting period decreased by 5% compared to the same period last year and amounted to 5204.30 UAH/MWh. The total volume of sales and purchases in the reporting period amounted to 28.55 thousand MWh.
European market
Last week, prices on European electricity markets rose due to news of Iran’s strikes on Israel, which caused gas prices to rise, but CO 2 prices declined throughout the week. European spot electricity prices jumped due to rising demand last Thursday. The German spot price jumped by more than 32%, closing at 96.13 EUR/MWh. The French spot price soared by 53%, reaching 88.42 EUR/MWh, due to the reduced availability of nuclear power in France.
Electricity generation from wind turbines in Europe averaged 19.8% of the region’s needs in the first three days of last week, according to the WindEurope Association. The following countries generated the largest volumes on different days: Germany, France, Spain, Sweden, the Netherlands, and Italy.
Solar PV production declined in most markets with the autumn decline in solar radiation. Solar energy generation in Europe in the first four days of last week decreased by 135 GWh compared to the same period of the previous week and totaled about 2,250 GWh.
The dynamics of electricity demand on the European electricity markets was mixed: demand increased on the Polish, French, German, Dutch, Portuguese, and British markets, while decreasing on the Spanish market and remaining unchanged in Italy. In the first four days of last week, the average European demand was at 304 GWh. Germany has the highest demand for electricity, accounting for almost 20% of total EU demand, and the maximum average October consumption was already reached on October 1: 67.9MWh. Over the next two weeks, winds will increase and temperatures will be relatively moderate, which should restrain demand growth.
As for hourly prices, the Italian market registered the lowest hourly price, which was the lowest since April 8 on this market: On September 29, from 13:00 to 14:00, the price was 0.97 EUR/MWh.
As of October 4, the price of basic electricity in France amounted to 88.42 EUR/MWh, in Hungary: 100.60 EUR/MWh; in Poland: 125.64 EUR/MWh.
As of November 2024, prices were trading in the range of 76-101 EUR/MWh in the above countries.
Monthly electricity futures for December 2024 increased by 6.5% in the analyzed countries; for January 2025, they increased by an average of 14.5% in France and Hungary.
Electricity prices in Y+1 grew following the rise in gas prices. The benchmark German energy contract Cal’25 closed at 86.90 EUR/MWh, while the French contract Cal’25 settled at 71.86 EUR/MWh, both up more than 1% on the day.
Futures contract prices, EUR/MWh, 03.10.2024
| Type | Contract | Date | France | Hungary | Poland |
|---|---|---|---|---|---|
| Base | Моnth | Nov/24 | 75,69 | 100,98 | 91,20 |
| Dec/24 | 81,78 | 101,22 | 101,43 | ||
| Jan/25 | 96,05 | 112,90 |
European carbon prices have been influenced by the adjacent gas market, which has eased fears of gas shortages ahead of winter. The EUAs, which expire in December 2024, were trading at a 6-month low last Thursday, with little buying activity. The price of EUA Futures Dec ’24 settled on October 3 at EUR 62.76 per tonne, up 0.3% from the previous session. On October 4, the price of carbon emission permits in the EU traded at EUR 61.9 per ton.
Last week, the coal market largely tracked the dynamics of gas prices, while the lack of physical spot demand put pressure on prices. On October 3, the spot price of thermal coal in Europe (API-2) amounted to 106.97 euros per ton.
Last week, Ukraine received imports from Hungary, Slovakia, Romania, Poland, and Moldova. Exports were to Poland, Hungary, Slovakia, Romania, and Moldova.
Public procurement
Over the past week, more than 20 electricity procurement tenders were held by customers. The volume of the 10 largest contracts sold amounted to 4.27 million kWh for a total value of UAH 27.16 million excluding VAT. Overall, the average price amounted to UAH 6.44 per kWh, excluding VAT. The largest contract was awarded to UKRGASTRADING LLC, which will supply 2.23 million kWh of electricity to SE UKRVODSERVICE at an initial price of UAH 6.34 per kWh excluding VAT. The largest tenders are shown in the graph below. Prices ranged from 5.95 to 7.87 UAH/kWh.
News of the wholesale electricity market
“Energoatom connects 1000 MWh nuclear power unit to the grid
On October 1, the company reconnected a 1000 MWh power unit to the grid after scheduled repairs. This was reported by the company’s press service. “On October 1, after scheduled preventive maintenance, Energoatom specialists successfully connected a power unit of one of the NPPs to the grid. The power is being ramped up,” the statement said. Thus, as of October 1, 2024, 8 NPP power units out of 9 available are operating in the power system.
Econergy to start construction of 50 MW BESS in Poland this year
Econergy will soon begin construction of a 50 MWh energy storage project in Poland. This is the first project of this scale that has already started construction. “In Poland, we will have 52 MWh of PV by the end of the year, and we are closing the deal and will start building a storage system with a capacity of about 50 MWh also in central Poland, which will probably be the first of its kind in the country,” said Przemek Zielinski, Econergy’s Poland manager. “The project has a building permit, and we are now preparing the entire construction and supplier selection process for it,” he added. The project is a stand-alone BESS with its own grid connection, and it won a contract for the 2023 capacity market. Econergy expects to start construction of the BESS in Q4 2024, with a commercial operation date expected in 2025 and “full operation” in 2026.