NPC Ukrenergo will hold the first specialized five-year auctions for ancillary services, where it plans to buy 99 MW and 1000 MW of power for balancing the power system.<\/p>\n
According to Energoreforma, the relevant auctions will be held on August 15 and 22.<\/p>\n
\u201cThe first auction will be held on August 15. Our need is 99 MW, this is the so-called primary regulation (frequency support reserve, execution of the command within 15 seconds – ER), and it will mainly involve energy storage systems (ESS) – very fast and very maneuverable installations,\u201d said Volodymyr Kudrytskyi, Chairman of the Board of the company.<\/p>\n
The second auction will take place on August 22 and will be more massive. It will involve the purchase of 1000 MW (automatic frequency restoration reserve, execution of a command within 15 minutes – ER). Of these, 579 MW is a loading service, i.e. balancing the system by increasing electricity generation, and 421 MW is a so-called symmetrical auction, when stations will be able to both unload and load at the dispatcher’s command.<\/p>\n
This auction is open to gas piston, gas turbine and biomass power plants, among others.<\/p>\n
\u201cWe offer a fixed contract in euros with the winners of the auctions for five years, starting from the end of September 2025. That is, within a year, the winners must build capacity capable of balancing the power system. The amount we pay is many times different from the amounts in the EU countries, because we have a huge shortage of such stations,\u201d Kudrytskyi described the situation.<\/p>\n
According to the terms of the auction, ancillary services are purchased for 1826 days – from October 1, 2025 to September 30, 2030.<\/p>\n
The marginal cost of the service at the DAM auction is up to EUR 33\/MW, and at the LMP auction – from EUR 24\/MW to EUR 33\/MW. In the first case, the service will be purchased in blocks of 4 hours, in the second – on an hourly basis.<\/p>\n
Ukrenergo estimates that the payback period of the projects will be 3-4 years.<\/p>\n