The Ministry of Energy: natural gas-fueled generation will be used during the heating season

For a stable passage of the heating season, natural gas generation will be involved. During a meeting at the Ministry of Energy with NPC Ukrenergo, NJSC Naftogaz of Ukraine and NEURC, a mechanism for the implementation of preventive measures to ensure the stable passage of the 2021/2022 autumn-winter period was agreed. This was reported by the press service of the Ministry of Energy.

To balance the power system during the heating season, power units of thermal power plants and combined heat and power plants (TPPs and CHPs), which use natural gas as fuel, will be involved.

“The required capacity will be activated only for balancing the power system and as a separate ancillary service. Such an approach, on the one hand, will allow financially balancing enterprises that will operate on natural gas, and avoid debt to NJSC Naftogaz of Ukraine, and on the other, minimal impact on pricing in the market,” the statement says.

NPC Ukrenergo was instructed to provide the Ministry of Energy and NEURC with the expected composition of generating equipment that will operate using natural gas, as well as forecast monthly volumes of gas consumption in the period from November 2021 to March 2022.

Also, NPC Ukrenergo will develop "Temporary procedure for the purchase of ancillary services to ensure the security of supplies with the involvement of power generating equipment that uses natural gas”, which has to be approved by NEURC. For timely payment of ancillary services, the Regulator must provide for the required amount of funds in the dispatching tariff of NPC Ukrenergo for 2021-2022.

NJSC Naftogaz of Ukraine will prepare long-term contracts with power generating enterprises, which should stipulate strict compliance with the payment schedule for consumed natural gas to ensure liquidity of Naftogaz.

As reported, Centrenergo offers private mines to redirect their coal to their warehouses.

Tags: Naftogaz, NEURC, TPP, Ukrenergo, heating season, CHP, price, volumes, power system balance, natural gas, power unit, The Ministry of Energy

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