According to Ministry of Energy and Coal, Ukraine as state has responsibility to pay FiT by 2030 in the amount of more than 40 billion UAH annually for 10 years only for the capacities introduced before 2021.
According to NEC UKRENERGO the settlement of imbalances in the new model of the market from 2021 will amount to 10-30 billion UAH annually.
At present, the system works in the following way: at peak loads the base of covering the generation oscillation consists of NPPs, the cover of non-manned generation – TPPs, and the planned fluctuations are covered by the HPPs.
The secondary reserve is necessary to ensure the continuity of the power system in case of unpredictable changes in its consumption or its generation. The secondary reserves of the TPP is 1932 MW are economically unprofitable, because it requires their full work, which is not required in Ukraine due to weather changes and seasonality.
Unlike the EU, whose grid systems operate in a well-developed network of interconnectors and the single market and have the ability to provide a balance through outsourcing, in Ukraine this capability is limited by the throughput of inter-system transmission lines from the ENTSO-E and the lack of a united with the EU electricity market.
In 2018, about 2.8 billion kWh of electricity was generated by renewable energy facilities, and the capacity of all connected renewable power plants is 2.1 GW (2% of the total volume). At the same time, payments amounted to 16.8 billion UAH, or about 8% of the total cost of electricity produced per year. These payments do not take into account additional TPP payments for maneuverability, which in 2018 increased by UAH 1.1 billion, and technological losses of electricity.
Along with the large hydroelectric power generation, the generation of RES is currently 9.1% and even exceeds the relevant indicators set in the Energy Strategy.
According to the calculations of the Ministry of Energy and Coal, in addition to the current and next years, the addition of +2.5 GW from the energy of the sun and wind is expected, which together with another alternative generation will exceed 5 GW of installed capacity.
In particular, the investment programs of the TPPs, which are approved by the Ministry, envisage the modernization of power units with the expansion of the range of their regulation. Construction of 4 hydroelectric units of the Dniester HPP of PJSC “Ukrhydroenergo” with a capacity of 324 MW in generator mode continues. It is planned to further increase the capacity of this HPP to 7 hydro units.
Therefore, the Ministry of Energy and Coal Industry proposes to increase liability for imbalances for the winners of auctions, to create high-quality SPP and WPP management systems and to forecast their production, to ensure the construction of high-power generation, to implement demand management measures to adjust the daily load schedule, etc. But first of all – to introduce effective market mechanisms for all participants in the electricity market.