Today, on July 1, 2019, as required by the law, a new model of the electricity market began working throughout Ukraine.
Electricity is traded on the platforms of the transmission system operator – SE NPC Ukrenergo (Market Managing System, MMS) and the Market Operator. The new market has not caused any disruptions in the power system.
Market Operator’s platform features “day ahead” (DAM) and “intra-day” (IDM) market segments. Ukrenergo platform covers the “registration of bilateral contracts” and “balancing market” segment.
Within the MMS, transition to actual market operations began at 10pm on June 28. Trading takes place in both trading zones: in the Integrated Power System (IPS) of Ukraine and in the Burshtyn TPP energy island.
695 participants registered in the new market at the time of the launch. In the “registration of bilateral contracts” market segment Ukrenergo has successfully registered 100% applications planned by market participants. A total of 98 bilateral contracts between 88 participants were registered. Please keep in mind that price bids on bilateral contracts are market players’ commercial secret.
The total volume of electricity sold under bilateral contracts as at July 1 amounted to about 230 thousand MWh, including 133 thousand MWh purchased by a Guaranteed Buyer for universal service providers for the needs of the population at a regulated price.
Ukrenergo has also successfully handed over to the Market Operator the data on the maximum limit sales volumes and an up-to-date list of market participants eligible at the “day-ahead market” and “intra-day market” segments. Trading result in the DAM amounted to 150 thousand MWh at an average weighted price of 1.59 UAH/MWh in the IPS of Ukraine and 1.78 UAH/MWh in the Burshtyn TPP energy island.
On the morning of July 1, auctions in the balancing market (BR) of the MMS platform were launched. They are held hourly before the end of the trading day. Trading result will be known after the Commercial Metering Administrator (Ukrenergo) receives commercial metering data from DSOs, as required by the Commercial Metering Code.
We should note that the volume of the balancing market will increase dramatically on July 1, as all applications for the purchase of electricity that were fulfilled due to improper operation of the intraday market segment launched with a few hours delay, were automatically transferred to this segment.
Putting into operation of the whole MMS platform in the real-life, rather than test, conditions was complicated by the Regulator’s changing the final versions of the Market Rules and the Transmission System Code only a few days before the launch. As these documents changed the rules and processes of the new market model, Ukrenergo had to promptly adjust the platform software in parallel with real-time market operations.