Economy

Some 423 MW of new balancing capacity already added to power system after first 2 special auctions – Ukrenergo

Ukraine's transmission system operator NPC Ukrenergo has recorded 423 MW of new balancing capacity added to the power system as a result of the first two special auctions for the long-term procurement of ancillary services, which were held in August 2024.

"As of December 31, a total of 117 MW represents the certified capacity of newly commissioned facilities providing Frequency Containment Reserve (FCR) services, while 333 MW represents the total certified capacity of newly commissioned generation facilities providing Automatic Frequency Restoration Reserve (aFRR) services," Ukrenergo said in a statement published on its Telegram channel on Wednesday.

The company said that some of the newly built facilities provide both types of ancillary services.

According to Ukrenergo's analysis, the largest share of the new balancing capacity consists of energy storage systems (ESS), totaling 398 MW. Newly built gas piston units with a total capacity of 25 MW also perform fast reserve functions.

Ukrenergo noted that the total capacity of newly built fast reserves will continue to increase, as the company has conducted a total of four special auctions for the long-term procurement of ancillary services. The winners of these auctions committed to building up to 810 MW of entirely new generation and energy storage facilities. The deadline for commissioning these capacities is November 21, 2026, depending on the auction date.

As reported, Ukrenergo held its first-ever long-term special auctions in 2024 (two in August and one in December) and in 2025 (one in May). Under these auctions, the winner signs a five-year contract with Ukrenergo, under which the company guarantees the purchase of ancillary services at the auction price during specified hours, including the ramping up or down of generation facilities or energy storage systems.

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