The National Commission for Energy and Utilities Regulation has authorised ancillary service providers with generation capacity across the entire Ukrainian Integrated Power System to participate in auctions organised by NEC «Ukrenergo». The decision concerns the creation of replacement reserves for frequency and active power control and, according to the regulator’s assessment, may reduce the extent of power supply restrictions on consumers.
Briefly about the main points
- Suppliers of ancillary services with generation capacity from across the entire Unified Energy System have been given the opportunity to take part in Ukrenergo’s auctions.
- The changes cover the replacement reserves for tertiary control.
- The temporary arrangements will remain in force during martial law and for 30 days following its termination or revocation.
- Cogeneration plants will be able to provide ancillary services throughout the country.
- The regulator expects more available capacity to address constraints in energy-deficient regions.
New rules for replacement reserves
NEURC has approved amendments to the Provisional Procedure for the Procurement of Ancillary Services to Ensure Frequency and Active Power Control in the Ukrainian Integrated Power System. This concerns the provision of replacement reserves, or tertiary control.
Under the new terms, ancillary service providers with generation capacity may participate in the transmission system operator’s auctions, regardless of the location of that capacity within the Ukrainian Integrated Power System. This makes it possible to draw more widely on available capacity to address system and balancing constraints, particularly in specific energy-deficient hubs.
The updated procedure will remain in force for the duration of martial law and for a further 30 days after its termination or revocation. The regulator expects that expanding the options for utilising generation capacity will help to minimise potential restrictions on electricity supply to consumers and maintain the reliable operation of the power system.
Cogeneration plants will be able to operate throughout Ukraine
Chair of the NEURC Yuriy Vlasenko reported that, at its previous meeting, the commission had authorised the provision of ancillary services «Ukrenergo» to cogeneration plants in Kyiv and the Kyiv region. The current decision extends this option to the whole of Ukraine.
Under the procedure for purchasing ancillary services, Ukrenergo compensates gas turbine and gas piston plants for the difference between the regulated price and the market price of electricity on the spot market. This will enable cogeneration plants to operate, provide services to Ukrenergo and participate in the relevant auctions.
The decision was taken under the circumstances massed missile and drone Russia’s attacks on energy infrastructure and the seasonal rise in electricity consumption. Damage to the electricity grid is causing localised restrictions in certain regions and energy hubs.
