Business

Ukrenergo urges companies to increase electricity imports from Europe

Since December 1, Ukraine’s ability to import electricity from neighboring European countries has increased significantly, and instead of 1700 MW, the maximum import capacity at any given time can now be 2100 MW. This was reminded by Ukrenergo, Komersant ukrainskyi reports.

“Given the consequences of the last two massive missile and drone attacks on the Ukrainian power system, increasing the volume of electricity supplies from abroad is an urgent need,” the National Energy Company emphasized.

It also reminded that due to electricity imports at the level of at least 60% of its own consumption, industrial consumers and businesses will be protected from hourly blackouts, and thus will maintain their usual rhythm of work even in the face of energy shortages.

As you know, previously, to avoid blackouts, it was necessary to import at least 80% of own consumption. A recent resolution of the Cabinet of Ministers has reduced the requirements for the share of so-called “directed imports”.

What is the volume of imports from the EU?

According to the “Slovo i Dilo” publication, in December-January this year, Ukraine imported electricity from four countries, and in February this year – from five. Over the winter, 19,404 thousand kWh were imported from Moldova, 70,599 thousand kWh from Poland, 151,196 thousand kWh from Romania, 196,609 thousand kWh from Slovakia, and 2,067 thousand kWh from Hungary.

In the spring of 2024, after the resumption of Russia’s attacks on the energy system, Ukraine imported almost twice as much electricity as in the winter: from Moldova – 61,456 thousand kWh, Poland – 67,757 thousand kWh, Romania – 152,599 thousand kWh, Slovakia – 189,147 thousand kWh, Hungary – 371,117 thousand kWh.

In the summer, imports were also record-breaking: from Moldova – 121.457 thousand kWh, Poland – 299.992 thousand kWh, Romania – 377.982 thousand kWh, Slovakia – 437.344 thousand kWh, Hungary – 937.276 thousand kWh.

In September, Ukraine imported 16.273 thousand kWh from Moldova, 86.175 thousand kWh from Poland, 75.341 thousand kWh from Romania, 107.352 thousand kWh from Slovakia, and 152.734 thousand kWh from Hungary.

What hinders the increase in electricity imports from Europe

Oleksandr Kharchenko, Director of the Energy Research Center, in a commentary to RBC-Ukraine, identified three main things that hinder imports.

According to him, the first thing that hinders imports is the restrictions imposed by the national regulator, the National Energy and Utilities Regulatory Commission.

“Businesses can order electricity abroad. It has physical access. But it has a strict limitation of our national regulator on the price that can be paid for electricity,” the expert noted.

The second problem is the high cost of electricity in Europe, which seriously complicates its purchase for Ukraine.

The third obstacle, according to Mr. Kharchenko, is the peculiarities of the organization of the Ukrainian electricity market.

According to him, this is not a market, but something like an electricity market: everything is done in such a way that the population has no way to use the electricity market.

And yet, how to join the import of electricity from the EU

Ukrenergo emphasizes that you do not have to be a trader or a specialist in foreign economic activity to import electricity. A detailed explanation can be found here.

In short, according to the Government Resolution No. 1127 dated 27.10.2023, there are two options for joining the electricity import business.

OPTION 1. Purchase of imported electricity from an electricity supplier.

Consumers, at their own discretion, choose an electricity supplier that is a participant in the electricity market of Ukraine and has the ability to supply imported electricity. One of such market participants may be a supplier that directly participates in auctions for the allocation of access to interstate crossings, i.e., directly carries out the primary import of imported electricity into Ukraine.

OPTION 2: The purchase of imported electricity is carried out by the consumer after obtaining the status of a participant in the electricity market of Ukraine.

To do this, the consumer must first of all apply to NPC Ukrenergo to conclude binding contracts in accordance with the requirements of the Law of Ukraine “On the Electricity Market”. In addition, the consumer will need to find a non-resident counterparty that is a market participant in a neighboring country that will export electricity to Ukraine and with whom the consumer plans to jointly move electricity across the customs border of Ukraine. The further algorithm of actions can be found at the link.