Since the first days of the new market we can observe a significant reserve deficit, according to Vsevolod Kovalchuk, Ukrenergo CEO, who announced it today during the roundtable “Launching the wholesale electricity market: first results and challenges”, organised by the dedicated committee of Verkhovna Rada.
Vsevolod Kovalchuk noted: “The point is that not all the market segments have been made operational, for instance, the ancillary services market is still missing. Now Ukrenergo is working together with the regulator to accelerate the certification of ancillary services providers”.
During most hours the required reserves are covered by generating companies at about 55-60%. This means that the power system is functioning with reduced reliability.
Kovalchuk stressed: “We should waste no time in tackling the issue of reserves deficit. Though indirectly, it influences the pricing. At the same time, the good news is that, despite reserves deficit, we don’t have any significant disruptions in reliability of generation equipment as well as the transmission grid, nor does it create any actual capacity deficit in the system”.
Moreover, during the 10 days of the new electricity market, the quality of commercial metering data has improved significantly.
Vsevolod Kovalchuk emphasized: “We believe that potential imbalances due to poor quality commercial metering, will be much lower than we had predicted before the market launch”.
At the same time, it was noted that so far the MMS (Market Management System) has not been receiving the full extent of metering data from the small RES generation, connected to the DSO (Distribution System Operator) grids. Losses in DSO grids are understated today compared to those after the final refinement of the data. The commercial metering data is constantly updated. Therefore, the most accurate data we have now on the MMS platform is for the 1st of July and the least accurate is for the 14th of July.