Ukrenergo’s e-auction platform: a step toward European energy integration
On 8 August, Ukrenergo’s head office hosted a public presentation of Damas, an e-auction platform offering access to cross-border capacity of Ukrenergo’s electrical networks.
This event was attended by Ukrenergo CEO Vsevolod Kovalchuk, Director for Market Development and Customer Service Andrii Nemyrovskyi, Director for Communications and International Cooperation Mykhailo Bno-Airiyan, Unicorn Systems (Damas developer) Director Volodymyr Pohoida, and the invited industry experts and media representatives.
Ukrenergo CEO Vsevolod Kovalchuk thanked all those who participated in development and implementation of the e-auction platform for their joint efforts, and for the support of this Ukrenergo’s initiative by the state regulator, the National Commission for Regulation of Energy and Utilities Sectors (NCREUS). He also said that Damas has been implemented at Ukrenergo and went operational on 18 May 2017, and is directly accessible via Ukrenergo’s official website, so after registration, any licensed electricity transmission operator or supplier can participate in auctions. “The platform’s key task is to facilitate the maximum utilization of the cross-border capacity of Ukrenergo’s electrical networks. This function is being realized by setting the minimum price for all bidders when the capacity of power transmission lines in a certain direction is fully utilized and with daily planning of electricity supply,” Vsevolod Kovalchuk emphasized.
After introducing his company and thanking everyone for cooperation, Unicorn Systems Director Volodymyr Pohoida said that this software took a long time to develop, but the result is fully compliant with requirements of not only Ukrainian but also European legislation, especially when confidentiality and information security are concerned.
Andrii Nemyrovskyi, Director for Market Development and Customer Service presented the features of the new electronic platform. Commenting on the presentation, he stressed the new feature which this platform offers to market participants and to Ukrenergo: daily auctions.
Daily auctions offer cross-border capacity of electrical networks that has not been distributed at the annual and monthly auctions, or has not been utilized, or has been returned for redistribution. Auctions of this type provide access period in hourly increments up to one day (for annual auctions, this period ranges from 30 days to one calendar year; for monthly auctions, from one day to the end of the relevant month).
In other words, if the winner of a monthly or annual auction does not fully utilize the capacity it received, the auction office will distribute this capacity at a daily auction to enable other market participants to utilize it.
During the presentation, an emphasis was placed upon complete confidentiality of information that the e-platform guarantees. It means that during an auction, every bidder can see only his own bid. It was also noted that thanks to the e-platform, the number of auction bidders today has already increased by 30%.
The e-platform handles all technical processes, fully automating them: from keeping the register of bidders, generating data for auctions of all types and conducting auctions per se to determining auction results, managing electrical network capacity, invoicing and controlling payments.
In the past, auctions on access to cross-border capacity of Ukrenergo’s electrical networks were held manually, using paper envelopes, with manual calculation of results, and so on. With the “manual” mode like that, there were high risks of the effect of human factor, information leak and conspiracy of bidders.
“With the launch of the electronic platform, thanks to automation of the process, everything became much simpler. We were able to negate the human factor, rule out information leak and promote competition increase,” Vsevolod Kovalchuk said. “A business that wants to export/import electricity may rest assured that this process is transparent, fair and with equal rights of all participants. This is an important step toward the future merger of Ukraine’s and European electricity markets”.
Facilitating synchronized operation with power systems of the neighboring countries, technical and technological facilitation of electricity exports and imports by transmitting it via trunk and cross-border electrical networks are some of Ukrenergo’s key functions. Access to the cross-border capacity of electrical networks of Ukraine is provided at special auctions according to the Procedure of organizing electronic auctions on distribution of the cross-border capacity of electrical networks approved by the NCREUS Resolution 426 of 28.03.2017.
Cross-border capacity of electrical networks of IPS of Ukraine is the technical feasibility of electricity supply via the cross-border section in the corresponding direction taking into account the maintenance schedules and rehabilitation of power equipment of IPS of Ukraine and neighboring countries.