Inaugural auction for power exports to Europe proves Ukraine can make billions - Ukrenergo head
MOSCOW. June 29 (Interfax) - An average price of booking interconnection capacity to export 100MW of electricity to Romania on June 30, which stood at UAH4,200 per MW/h, is a record, and the auction itself, held for the first time since Europe's opening for electricity exports, proves the ability of Ukraine to earn billions of hryvni, Ukrenergo Board Chairman Volodymyr Kudrytsky said.
"The first auction for booking interconnection capacity after the synchronization of Ukrainian and European power grids yielded a record purchasing price of UAH4,200 per MW/h. On the first day, the Ukrenergo state company earned UAH10 million," Ukrainian media outlets said, citing Kudrytsky as saying on social media in the early hours of Wednesday.
Should the exports grow to 1,000MW and auctions for booking interconnection capacity continue at the same level, Ukraine could earn up to UAH100 million a day or UAH36 billion a year, Kudrytsky said. Therefore, the selling of 2,000MW of electricity could bring about UAH72 billion a year, he said.
"This is the price of European rules and the transparency and competitiveness of the auction procedure in contrast to the traditional desire to 'rule' that is capable of zeroing out UAH72 billion. This is why, Ukrenergo will always be actively promoting and defending these principles - a deviation from them will cost the country a great deal," Kudrytsky said.
As reported earlier, the commercial exports of 100 MW of electricity from Ukraine to Europe after the synchronization of the Ukrainian and European power grids, approved by ENTSO-E on June 27, would start on June 30. Electricity will first be exported to Romania, and later on power will be supplied to Slovakia and Hungary. For now, the amount of exports is limited to 100MW. Ukrenergo is expecting the exports to grow in a month.
The first booking of interconnection capacity for electricity exports to Romania took place on June 28. There were eight bidders, and five received access to interstate transmission capacity. The purchasing price ranged from UAH1,471 per MW/h (3 a.m delivery) to UAH6,050 per MW/h (11 p.m. delivery).
ENTSO-E has approved the first quotas for commercial exports in addition to the power supply to Poland and Moldova, which Ukrenergo resumed in March and May, respectively, following a pause caused by the synchronization process.
In the words of Ukrainian Energy Minister Herman Halushchenko, the Ukrainian power grid is capable of exporting up to 1,690 MW of electricity, and the exports may eventually grow to 4,000-5,000 MW upon taking additional technical measures.