Ukrenergo may refuse to hold further special auctions for new maneuverable capacity

NPC Ukrenergo may refuse to hold new long-term auctions for new maneuverable capacity if the winners of the previous ones fulfill their obligations, and also holding such auctions would be inappropriate against the background of integration with the European energy market, company's director of market operations Oleksandr Stremoukh has said.

"The decision to hold the next long-term auctions for ancillary services will depend on the willingness of the winners of the first auctions to provide such services. We will see this closer to October 1. Will our need for support reserves and frequency restoration be closed? Now I am very optimistic that the winners of the auctions will fulfill their obligations," Stremoukh said at the forum "Charge and Earn: How Energy Storage Systems Unlock New Opportunities in the Electricity Market" organized by the Solar Energy Association of Ukraine and JSC Market Operator.

At the same time, he said it is necessary to assess the feasibility of long-term auctions in general against the background of future integration with the European market, which is not tied to such long-term obligations.

"Is it worth continuing such special auctions and taking on additional obligations before the full integration of markets? Perhaps it is more expedient to leave the provision of such services to daily auctions," Stremoukh said.

As reported, according to Stremoukh at the same forum, currently two of the 37 companies that won the first two special auctions for ancillary services have postponed their provision from October 1 for four months. These are two 2 MW gas generation facilities. Stremoukh suggested that there may be two more companies that will postpone the deadlines, but in general he expects the auction winners to fulfill their obligations on time.