Ukrainian electricity imports double in June, with zero exports - analysts

MOSCOW. July 2 (Interfax) - Ukrainian electricity imports almost doubled in June 2024 month-on-month from 449 million kWh to 859 million kWh, while exports stood at zero, Ukrainian media quoted an analytical note drawn up by the D.Trading company.

"Thus Ukraine has remained a net importer of electricity, while June 2024 hit a record height in terms of imports over the past two years," the note said.

A rise in the mandatory amount of imported electricity aimed at preventing power outages of industrial consumers from 30% to 80% is a main factor behind the June growth of electricity imports, it said. New price caps stemming from a profitable difference between the Ukrainian and European spot markets allowed to increase commercial imports, it said.

The scheduled maintenance of the nuclear power plants and damaged power generation infrastructure in June drastically expanded the power system shortage, D.Trading said.

The daily electricity import high in 2023-2024 was reached on June 15, when 35.6 million kWh, or 17% of Ukraine's total electricity consumption, were imported, it said.

Electricity was imported at the peak load of 1,700 MW allowed for imports from Europe for eight hours, it said.

"In all, interconnectors were used at 80%. The interconnector with Hungary was used at 79%, Poland at 96%, Romania at 91%, Slovakia at 92% and Moldova at 42%. Such figures show interconnectors are used actually on the brink of their capacity," D.Trading said.

Poland reduced power exchanges to zero during evening peak hours, it said, adding that greater power exchanges are in demand, as Ukraine's demand for imported electricity is growing, while shortages were on the rise in June-July.

Ukraine imported most energy from Hungary, 357.2 million kWh, second comes Romania and Slovakia, with 149 million kWh and 148 million kWh, respectively, it said. Poland imported 138.3 million kWh and Moldova 66.3 million kWh, it said.

Electricity prices dropped in Europe in the first half of June and stood below Ukraine's levels, which resulted in higher electricity imports, D.Trading said. However, European electricity prices went up in the second half of June because of a heat wave, it said. Therefore, process in Europe were higher than in Ukraine, especially during peak hours, when the demand for imports was the highest, it said, adding that this situation also affected the amount of imports. The amount of 'direct' electricity imports for industrial consumers totaled up to 700-900 MW usually with basic load, it said.

Electricity exports stood at zero in June, which was the worst month in the past 10 years from this point of view, it said, adding that electricity exports stood at 3.9 million kWh in May, 12 million kWh in April, and 154 million kWh in March.