The electricity market has been successfully launched – Vice Prime Minister Kistion
Vice Prime Minister of Ukraine, head of the coordination center for the introduction of a new electricity market, Volodymyr Kistion, informed about the successful launch of the key energy reform.
"The electricity market has started! Today, the first power trading sessions on the new Day Ahead Market (DAM) took place. I congratulate the teams of SE “Market Operator”, NEC “Ukrenergo”, SE “Oschadbank”, Andriy Pyshny and Ihor Nasalyk with the successful implementation of the important reform for Ukraine," he wrote on his Facebook page.
Volodymyr Kistion also noted, “The price of electricity for the households starting July 1, 2019 remains unchanged – an average of UAH 1.08 per kWh”.
From now on, a new competitive model of the electricity market has been introduced – Ihor Nasalyk
“With the launch of a new electricity market, the consumer will receive quality services at a competitive price”
– this was mentioned in a statement of the Minister of Energy and Coal Industry of Ukraine Ihor Nasalyk, published on the website of the Ministry on the occasion of the new electricity market launch as of today.
“Today, July 1st, 2019, marks an important stage in implementing the reform of the state's energy sector in Ukraine: it is a full-scale launch of a new model of the electricity market. In this regard, I would like to stress two important issues. First, the energy market is consumer-centric and provides the opportunity for everyone to choose their electricity supplier. Second, we deliver on our commitments to the Energy Community and create an opportunity to integrate into the European energy market, which will strengthen the energy security of our country,” said the Minister.
The Minister also mentioned the significant role of the Ministry of Energy and Coal Industry in the preparation of the regulatory framework to enable the successful launch of the market and the protection of all its participants, both suppliers and consumers. In addition, he stressed that the Government had taken all necessary measures in order to not increase the electricity prices for households and industrial consumers.
“With the introduction of a new electricity market model, the price of electricity for household consumers must remain unchanged – we took care of it. The price should also not increase sharply for industrial consumers. During the transition period, some restrictions are imposed in order to prevent the rapid growth of prices. The market must go through the evolution until its full liberalization,” Nasalyk said.
The results of the first trading sessions on the Day Ahead Market are a testament to the successful start of the electricity market reform
The results of the first trading sessions in the new segment of the wholesale electricity market – on the DAM – are a testament to the successful start of the electricity market reform, said the director of the SE Market Operator Volodymyr Yevdokimov in a comment to the Interfax-Ukraine agency.
According to Mr. Yevdokimov, over the last two days before launching the new model of the wholesale power market, the personnel of the “Market Operator” responsible for the operation of the DAM and the intraday market (IDM) worked 24 hours to ensure the timely start of operations for the new electricity market model. Mr. Yevdokimov noted that 192 participants took part in the trading sessions.
DTEK participated in the first power trading session on the new Day Ahead Market
On July 1st, 2019, Ukraine launched the new liberalized power market. DTEK participated in the first power trading session on the Day Ahead Market. The closing price for the first trading session dropped to UAH 1.569 per kWh which represents a 12% decline in comparison to the 1H/2019 levels.
The SE “Market Operator”, has held the first competitive trading on the DAM – the main exchange segment of the new market, where electricity is sold on a daily basis. DAM is the main price reference for market participants, not including household consumers where tariffs are regulated under the PSO provisions of the Law.
The first day volume of 150.9 mln kWh was sold on the DAM platform at an average price of UAH 1.594 per kWh. The closing price of DTEK’s TPPs on the DAM was UAH 1.569 per kWh. Tariffs for households remain unchanged. Ukraine’s household tariffs are among the lowest in Europe.
DTEK welcomes the launch of the new liberalized power market model. It is similar to the European power markets. It will create a transparent environment conducive to competition, liquidity and capital investments to the Ukrainian sector. The launch of a competitive electricity market is one of Ukraine’s obligations to the European Union and is required by the Third Energy Package of the EU.
Energy Community Sustainability Forum – DTEK’s input
The third Energy Community Sustainability Forum took place on June 27th, 2019 in Vienna. The Forum gathered Ministers and Deputy Ministers responsible for energy, environment and climate change of the Energy Community Contracting Parties, high-level officials of the European Commission, EU Member States and Contracting Parties as well as representatives of academia, civil society and non-governmental organizations to discuss the best ways for the Energy Community to embrace a decarbonized energy future.
Anna Zvolikevych, DTEK Representative in Brussels, also was a speaker at the forum, explaining how large companies can address their sustainability challenges and take them into account in their daily operations. “Decarbonisation is one of three strategic priorities for our company. We aim to achieve it by reducing our thermal power generation and investing in renewables, which will also contribute to a significant reduction in other pollutants. Ukraine needs an estimated EUR 6.5 bln to be able to comply with the national emission reduction plan. This requires all relevant stakeholders – including DTEK – to create the best possible mechanisms to attract such investments.” Ms. Zvolikevych presented a timeline to demonstrate the milestones in the Energy Market reform in Ukraine as an enabler for timely synchronization with Continental Europe ENTSO-E and ensuring compliance with requirements on air pollutants (SOx, NOx, PMs) reduction.
Coal stocks at power plants
|
|
01.07.2018 |
01.07.2019 |
2019/2018, % increase |
min level of stocks* |
2019/min stocks, % |
coal reserves for 1 month of work** |
Work without supply, days |
|
DTEK TPPs |
1 085 |
916 |
-16% |
1 223 |
75% |
1 670 |
17 |
|
G+DG grade: |
933 |
789 |
-15% |
1 022 |
77% |
1 431 |
17 |
|
Zaporiz’ka |
137 |
139 |
1% |
161 |
86% |
209 |
21 |
|
Ladyzhins’ka |
174 |
53 |
-69% |
176 |
30% |
203 |
8 |
|
Burshtyns’ka |
123 |
176 |
44% |
227 |
78% |
429 |
13 |
|
Dobrotvirs’ka |
49 |
47 |
-4% |
123 |
38% |
120 |
12 |
|
Kurahivs’ka |
331 |
314 |
-5% |
220 |
143% |
359 |
27 |
|
Kryvoriz’ka |
23 |
0 |
-100% |
9 |
0% |
0 |
– |
|
Prydniprovs’ka |
98 |
61 |
-38% |
106 |
57% |
111 |
17 |
|
А+Т grade: |
152 |
126 |
-17% |
201 |
63% |
239 |
16 |
|
Krivoriz’ka |
56 |
34 |
-39% |
105 |
32% |
145 |
7 |
|
Prydniprovs’ka |
13 |
10 |
-21% |
10 |
100% |
0 |
– |
|
Luhans’ka |
83 |
83 |
-1% |
86 |
96% |
95 |
27 |
|
Other Ukrainian TPPs |
467 |
472 |
1% |
464 |
102% |
604 |
24 |
|
G+DG grade |
204 |
234 |
15% |
320 |
73% |
461 |
16 |
|
А+Т grade |
263 |
238 |
-10% |
144 |
165% |
143 |
51 |
|
All Ukrainian TPPs |
1 552 |
1 388 |
-11% |
1 687 |
82% |
2 274 |
19 |
|
G+DG grade |
1 137 |
1 024 |
-10% |
1 342 |
76% |
1 892 |
17 |
|
А+Т grade |
415 |
364 |
-12% |
345 |
106% |
383 |
30 |
* – level of coal stocks for 01.08.2019 according to the Stockpile schedule by Ministry (dated 29.03.19)
** – on the basis of coal reserves for 1 month of work in the mode of the Stockpile schedule by Ministry (dated 29.03.19) on July 2019
USUBC NOTE: (entire №8/2019 DTEK BRIEF ON KEY BUSINESS ISSUES found in the PDF document: №8/2019 DTEK BRIEF ON KEY BUSINESS ISSUES)
