These new capacities are designed to offer automatic frequency restoration reserve (aFRR) services, ensuring that Ukraine’s grid remains stable and responsive to fluctuations in power demand.
Key Details
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Special Auction Outcome:
On December 24, Ukrenergo conducted its third special auction for a five-year contract to procure auxiliary services—specifically automatic frequency restoration reserves. Winners pledged to build and operate new power plants using gas piston, gas turbine, and biomass technologies, as well as energy storage facilities. -
Timing and Certification:
Successful bidders are required to complete construction, certify their equipment, and commence service provision by January 1, 2026. This quick start ensures the high-flexibility units can be ramped up or down at Ukrenergo’s request within a mere 15 minutes. -
Cost and Savings:
The average price for the symmetrical reserve services sold at the auction was UAH 1,263.08/MW, resulting in an expected savings of over UAH 80 million during the five-year term of the contract.
Additional Auctions and Capacity Expansion
In 2024, Ukrenergo held three special auctions to secure long-term auxiliary services. Altogether, these auctions guarantee the construction of over 400 MW of new generation capacity, with a significant proportion slated to come online by October of this year. This bolstering of the grid underscores Ukraine’s commitment to modernizing its energy infrastructure, enhancing grid stability, and preparing for future growth in power demand.
By promoting flexible, high-maneuverability power plants—be they gas-fired, biomass-based, or battery-supported—Ukraine aims to fortify its electricity grid against fluctuations, lower reserve costs, and ensure a more reliable energy supply for industrial and residential customers alike.
