Donbasenergo presented proposals on ways to balance the work of thermal generation

Donbasenergo PJSC applied to the Anti-Crisis Energy Headquarters with proposals on ways to balance the work of thermal generation enterprises, the press service reports.

The energy company has repeatedly stated about the imperfection of a number of regulatory restrictions for coal generation, affecting the deepening of the crisis state of the Ukrainian electricity market.

“So, only in the second quarter of 2020, the average price on the DAM was UAH 1185/MWh, while the fuel component for the production of electricity at Slavyanska TPP of Donbasenergo PJSC exceeded UAH 1200/MWh. In July of this year, the average price on the DAM was UAH 1178/MWh, and therefore, the prices on the DAM continue not to cover even the replacement costs of thermal generation for electricity production,” the report says.

In order to overcome the crisis in the electric power industry, stabilize the situation on the electric energy market, Donbasenergo proposes the following effective steps:

To create conditions for NPPs for free sale of electricity on the market:

Stage 1 – to introduce PSO on terms of 50% sale of NPPs under bilateral agreements;
Stage 2 – to introduce the PSO financial model and ensure 100% sales of NPP electricity on the free market, which will allow NPPs to become competitive and control the supply of their electricity to balance the financial situation.

To cancel price caps on the DAM and IDM in order to cover the cost of electricity production:

Stage 1 – bring the price cap at night (UAH 959.12/MWh) to the daytime level (UAH 2048.23/MWh);
Stage 2 – completely cancel the price cap.

To remove price restrictions on the balancing market in order to cover the conditionally fixed costs of shunting generation.

To set prices on the IDM not lower than prices which are formed on the DAM. This will increase the demand on the DAM and stabilize the price.

Tags: The Cabinet of Ministers, contracts, NPP, tariffs, NNEGC "Energoatom", legislation, electricity, NEURC, energy market, ETL, electricity market, PSO, price, agreement, volumes, The National Energy and Utilities the Natuonal Regulatory Commission, power system balance, infrastructure, electricity transmission, intraday market, IPS, Shmyhal, population, nuclear power plant, energy security, power unit, generation, crisis, Buslavets, The Ministry of Energy, economy, market, power grid, day-ahead market, electricity consumption

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