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The National Energy and Utilities Regulatory Commission of Ukraine (the “NEURC”) is actively developing the legislative framework on the energy markets in Ukraine and engaging energy market participants in the discussion. The following drafts are of particular interest.
Mechanism of reimbursement for the curtailment to renewable producers at the “green” tariff/auction price
On 23 September 2020, the NEURC approved the draft Resolution (the “Draft Resolution”) on amendments to the Market Rules (approved by the NEURC Resolution dated 14 March 2018 No. 307) (the “Market Rules”) with the purpose of making it public and obtaining comments and suggestions from the interested parties before final adoption.
The main purpose of the Draft Resolution is to determine a mechanism for reimbursement to the renewable producers at the “green” tariff/auction price of the cost of electricity that was not produced due to the dispatcher’s command to unload by the transmission system operator (the “TSO”).
According to the Draft Resolution, the TSO is obliged to compensate the curtailments of the renewable generation occurred before 1 January 2020 as a result of the execution of the TSO’s commands to reduce the load. The cost of compensation is proposed to be calculated according to the methodology that will be introduced by the Draft Resolution.
The Draft Resolution supplements the Market Rules with the Methodology for calculating the volume of electricity which was not generated by a generator that sells electricity at the “green” tariff or at the auction price due to executing the TSO commands (the “Methodology”) and suggests the following amendments to the Market Rules.
Changes in definitions:
- a definition of the “Electricity Producers at the Green Tariff” should be replaced by the “Sellers to the Guaranteed Buyer”, which will also include producers who received the right to support as a result of the auction.
Dispatcher’s commands rules:
- the rule that the TSO informs the NEURC about non-fulfillment of a dispatcher’s command more than once within a calendar month should be extended to the activity of the Sellers to the Guaranteed Buyer;
- to provide the Seller to the Guaranteed Buyer with access to information on the issued dispatcher’s commands for the purpose of dispute resolution.
Information and new account:
- to oblige the TSO to disclose on monthly basis information on the volume of electricity which was not produced by the Sellers to the Guaranteed Buyer due to the dispatcher’s command;
- to add a new account of the Settlement Administrator for compensations for electricity which was not produced by the Sellers to the Guaranteed Buyer due to the dispatcher’s command and establish the rules for its debiting and crediting.
Calculation of compensation:
- to add the rules on calculation of compensation for the electricity which was not generated by the Sellers to the Guaranteed Buyer due to the curtailments;
- to add the rules on calculation of fees that the Sellers to the Guaranteed Buyer have to pay for non-compliance with the dispatcher’s commands.
Tolerance margin for performance of the dispatcher’s command:
- it is suggested to establish a tolerance of 10 per cent between the volume of actually generated electricity during the execution of the dispatcher’s command and the estimated volume that such a unit should have generated. If this tolerance is exceeded, the dispatcher command is considered as not executed.
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