On the 20th of February the final pre-tender meeting with the potential developers of the software to automate the market functions of the Transmission System Operator in accordance with the requirements of the Law of Ukraine “On Electricity Market” was hold in Ukrenergo. The tender will be held according to the international procurements procedure within implementation if the UE/5 Package “Implementation of the Balancing Market” of the Second Project on Power Transmission, being financed for the credit funds of the International Bank for Reconstruction and Development as well as the Clean Technology Fund.
“The project is quite complicated for us. Thus, the purchase process is held in two stages: the applied software at first (lot 1 “Balancing Market and settlements admimistrator”, lot 2 “commercial metering administrator”) and the hardware resources afterwards (lot 3 “Infrastructure of the Balancing market”). The idea is to minimize risks of the program software providers and to enhance the competition as well as to acquire the unified and self-contained hardware resources for the whole market platform. The following procedure is supported by the IFIs”, Andrii Nemyrovskii, Chief Market Development and IT Officer at the SE “NPC “Ukrenergo”, commented the event.
Possessing new software, Ukrenergo will be able to perform the following functions within the new market model:
- Balancing market and system services operator (power system balancing in the real-time given the new market mechanisms);
- Settlements admimistrator (automation of the billing process, payment control);
- Commercial metering administrator (energy records, automation of the process at the retail market, summary on each market player).
“Up to thirty companies purchased the tender documents. There are Ukrainian companies, international corporations and the European software developers. The representatives of the latest ones were yesterday at the meeting during which we commented and clarified the technical moments so that the participants could submit their offers which would comply with our requirements. I hope that the high level of competition, being observed today, will result successfully and we will get a high-quality product for the optimal price”, mentioned Andrii Nemyrovskii.
The tender offers will opened on March 16, 2018 (as regards to an approval with the IFIs).
New market model should be launched in the second half of 2019 due to the Law of Ukraine “On Electricity Market”.
Balancing electricity market is one of the segments of the Ukrainian electricity market, which is organized by the transmission system operator in order to provide sufficient volumes of power and capacity necessary for real-time balancing of volumes of power generation and import as well as power consumption and export, systemic constraints settlement within the Ukrainian power system, and the financial regulation of power imbalances (art.68 of the Law of Ukraine “On Electricity Market” ).
The transmission system operator purchases and sells energy on the contractual basis at the balancing market in order to balance demand and supply within a certain day, regulation of the power imbalances.
According to the results of the balancing market in a given day on the basis of transmission system operator data and the commercial metering administrator, the settlements admimistrator calculates the payments of the transmission system operator and suppliers of the balancing services, the price of the power imbalance, as well as the volumes of electricity market imbalances and corresponding payments for them and invoices the relevant bills in the order stipulated by the market rules.