Electricity market: the Cabinet gave the expensive coal-fired power plants a priority

Рынок электроэнергии: Кабмин предоставил дорогим угольным ТЭС приоритет

The Ministry of energy was instructed to approve the list of TPS which will be implemented by priority dispatch.

The government recommended that the operator of the United energy system of Ukraine state company “Ukrenergo” to provide the thermal power plants (TPP) coal priority dispatching of the electricity they produce until November 2020.

This is stated in the decree of the Cabinet dated June 17, published on the government portal.

“The Ministry of energy, subject to the requirements of part 5 of article 44 of the Law “On electricity market”, to approve the list of generating capacities of thermal power plants in the context of generating units that use coal for electricity generation and with respect to which will be implemented by priority dispatch”, — stated in the order.

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In addition, the “Ukrenergo” recommend “to provide priority dispatch of installed generating capacity of thermal power electricity generation companies that do not use natural gas as primary and backup fuel for production of electric energy.”

The exception is gas, which is used for technological needs for sustained combustion and the operations by start/stop of major equipment.

As reported earlier, energy Minister Olga Bukovec stated that the main fuel for electricity production in Ukraine should be Ukrainian coal.

According to her, the situation with the artificial reduction of demand for domestic coal is unacceptable given the fact that it leads to the suspension of the mines, the forced downtime, delays in the payment of wages to miners and, in General, increased social and economic tension in the regions.

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Updated balance energy system of Ukraine, approved by the Department of energy and environmental protection, provides output to the dead time of the three nuclear power plants of Energoatom and work at reduced power for another 5 units.

The energy balance was revised in connection with the forecast increase in renewable energy production. More than 20% of the market belongs to the RES energoholding DTEK businessman Rinat Akhmetov. At the same time, thermal power plants, most of which are also included in the energy holding DTEK is expected insignificant decline in the share of generation.

The thermal energy is more expensive than nuclear, which affects the electricity rates.