O. Brekht clarified that the system operator intends to analyse why the first-ever auctions held in August failed to cover the entire demand for balancing capacities.
As reported, in August 2024, Ukrenergo held two long-term auctions for ancillary services for the first time for 99 MW and 1,000 MW. According to the results of the first auction for frequency support reserves (FCR), the need for new capacities was almost completely covered, while the second auction for automatic frequency restoration reserves covered the need by 41% for unloading and 62% for unloading/loading.
The essence of the auctions was that the winners receive a contract for five years, under which the NPC undertakes to pay for the services of balancing the power system at the price established on the auction. According to the terms of the auctions, the winners must build generating capacities (gas and biomass power plants) and energy storage systems to provide these services by October 2025.
