The volumes of electricity produced by NNEGC Energoatom that could not be sold on the bilateral agreements market, the day-ahead market and the intraday market, suppliers sell electricity to end consumers mainly at a price that is in contracts with other electricity producers that submit applications for unloading within balancing market. This was reported by the press service of Ukrenergo.
Volodymyr Kudrytsky, acting Chairman of the Board of NPC Ukrenergo, said that a decrease in the generation of electricity at nuclear power plants (NPPs), in accordance with the new forecast balance of electricity, would not have a noticeable effect on the price of electricity for the end consumer.
“Today, the crisis in the electricity sector is caused by a sharp decline in consumption, against which a surplus of electricity has appeared in the power system. And it led to serious consequences not only in terms of balancing the power system, but also the functioning of the electricity market itself,” he said.
It is noted that from the point of view of the market the surplus is unsold by the producer, and, accordingly, unpurchased by the supplier/consumer electricity on the on the bilateral agreements market, the day-ahead market and the intraday market, which nevertheless continues to be generated.
When today this surplus is generated at nuclear power plants, it replaces a part of the volumes that, according to contracts with suppliers/consumers, should be produced mainly by thermal power plants (TPPs and CHPs) that submit applications for unloading within the balancing market.
According to these applications, producers agree, instead of generating electricity, to buy excess on the balancing market. Moreover, the price of such a purchase is determined in the framework of the Market Rules and amounts to 55% of the day-ahead market price. Further, the participants of the balancing market sell the electricity bought to their customers at the prices indicated in their contracts.
“As a result, suppliers buy excess electricity (surplus created by nuclear power plants – ed.) at the price of a balancing market. Energoatom receives for excessively produced volumes – the market price "minus" 45%, in other words, the price at a large discount. The difference goes, for example, to thermal plants, as the income from balancing services,” Kudrytsky explained.
At the same time, he emphasized that a decrease in nuclear power generation in the new forecast balance of electricity would not affect the volumes of Energoatom that can be sold to suppliers for end consumers.
Recall that NEURC approved the investment program of Ukrenergo for 2020.
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