SEAU calls for review of electricity price caps

The Solar Energy Association of Ukraine, together with other RES market associations, has appealed to the National Energy and Utilities Regulatory Commission to review the price caps on the day-ahead market, intraday market and balancing market.

RES market participants point out that the constant shelling of critical energy infrastructure results in a lack of new capacity and the need to restore networks. And the current level of marginal prices on the DAM, IDM and balancing market does not allow for electricity imports during the most scarce hours.

“Today, market participants are working in extremely difficult conditions, making every effort to ensure energy security and stability of our country’s power system. That is why it is important to listen to the opinion of the expert community. The Solar Energy Association supports the need to revise the electricity price caps and is confident that this decision will have a positive impact on the development of the energy market and the entire Ukrainian economy,” said Vladyslav Sokolovskyi, Chairman of the Board of the Association.

As explained by the ASEU, it is currently proposed to keep the price caps set by NEURC Resolution No. 1976 on the DAM and IDM markets at the same level. According to industry experts, bringing the price caps in line with the European level.

The Solar Energy Association of Ukraine, together with other RES market associations, has appealed to the National Energy and Utilities Regulatory Commission to review the price caps on the day-ahead market, intraday market and balancing market.

RES market participants point out that the constant shelling of critical energy infrastructure results in a lack of new capacity and the need to restore networks. And the current level of marginal prices on the DAM, IDM and balancing market does not allow for electricity imports during the most scarce hours.

“Today, market participants are working in extremely difficult conditions, making every effort to ensure energy security and stability of our country’s power system. That is why it is important to listen to the opinion of the expert community. The Solar Energy Association supports the need to revise the electricity price caps and is confident that this decision will have a positive impact on the development of the energy market and the entire Ukrainian economy,” said Vladyslav Sokolovskyi, Chairman of the Board of the Association.

As explained by the ASEU, it is currently proposed to keep the price caps set by NEURC Resolution No. 1976 on the DAM and IDM markets at the same level. According to industry experts, bringing the price caps in line with the European level will:

• provide additional funds for break-even operating activities of electricity producers, including producers from alternative energy sources, universal service providers, etc;
• allow for emergency repairs of generating and network equipment;
• facilitate preparation for sustainable operation of energy sector enterprises;
• facilitate the passage of the autumn-winter period;
• solve the problem of electricity imports during shortage periods;
• allow SE Guaranteed Buyer to increase revenues from electricity sales and improve the level of settlements with renewable electricity producers.