“Ukrenergo” to hold the first long-term auction for ancillary services

NPC Ukrenergo is preparing to hold the first long-term auction for ancillary services in August and plans to put up more than 1 GW of capacity.

According to Energoreforma, this was announced by the company’s Chairman of the Board Volodymyr Kudrytskyi.

“We plan to hold the first auction in August… We hope that the volume of services that we will purchase at it, which is more than 1000 MW, will be sold out. Or most of it,” Kudrytskyi said during a briefing at the Media Center in Kyiv on Friday.

According to him, interest in such auctions has long been quite high and is increasing over time.

“We made a cross-section of various investors, including international ones, back in Berlin (URC-2024), where more than 30 companies from Ukraine, Europe, and other continents came to our stand. Even then, we saw a huge interest. Now it is only growing,” said the CEO of “Ukrenergo”.

He emphasized that many Ukrainian companies that had not previously been in the energy business are ready to build generating capacities both for their own production and to operate in the market as a separate business. And the introduction of long-term auctions will facilitate this.

“Together with the NEURC, we have found a way to create economic conditions for new decentralized distributed generation to be built in Ukraine – the part of it that participates in balancing the power system. Essentially, we are talking about a contract that will be auctioned off by dozens, maybe hundreds of small power plants. This is a contract that will guarantee them, after construction and connection to the system, a fee for an ancillary service for its balancing,” he explained the essence of the auctions.

The head of NPC added that the possibility of concluding such contracts for five years guarantees payback for power plants and explains to the investor how he will return his investment.