On September 28, the Cabinet of Ministers adopted a resolution “On amendments to the procedure for conducting electronic auctions for the sale of electricity under bilateral contracts,” the resolution was published in the official press, UEEX’s press service reports.
The decree opens up the possibility of selling electricity, produced from renewable energy sources, under bilateral agreements for auctions in the form of special sessions.
According to the document, the sequence of holding special sessions and the timing of electricity supply are determined. Three such sessions can occur during the month:
- the first session – up to the 1st day of each settlement month, with a due date of one month following the month when it is held;
- the second session – up to the 8th day of each settlement month, with a due date of the second and third decades of the month in the month when an auction is held;
- the third session – by the 18th day of each settlement month, with a due date of the third decade of the month when an auction is held.
The application for the auction is submitted by Guaranteed Buyer indicating the starting prices, which will be determined by a special formula established by the procedure of holding a special session. According to the formula, the price takes into account the weighted average price and sales volume in the wholesale market segments for each trading hour and the number of billing periods of the product within one trading day.
The order provides for the sale of electricity at a price not lower than the starting price, in other words, the auction will take place at a price increase.
“Today, the share of imbalances for renewable energy sources remains quite high. We received a mechanism that enables Guaranteed Buyer to sell electricity under bilateral contracts on the exchange and thereby compensate for excess electricity. This allows us to stabilize the current situation in the renewable energy market and attract new participants to auctions at the UEEX,” UEEX General Director Oleksandr Kovalenko emphasizes.