The Alternative Model of Competitive Electric Energy Market of Ukraine (Part 1)

• Main Authors: Kyzym Mykola O., Salashenko Tetiana I.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2020-08-01
• Series: Bìznes Inform
• Subjects: electric energy; electric energy market; competition; time market; spot market; balancing
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2020-8_0-pages-115_124.pdf

Ukraine has introduced a quasi-competitive electric energy market of the European prototype, which has significant functioning defects. Correction of this model should take into account the requirements of the European cross-national legislation, peculiarities of the national energy system and the most successful experience in liberalization of electric energy markets of other world countries. The article proposes an alternative model of the competitive electric energy market of Ukraine, which provides for: introduction of exclusively organized form of electric energy trading over a long time interval; development of spot segments of the market through an effective combination of different trade mechanisms and pricing methods; development of the balancing management system on the basis of combined dispatching. The time market of electric energy is presented by the authors in the form of the market of financial derivatives for electric energy, which can either be converted into physical electric energy, or can be cascaded for shorter periods of time, or can become basis for financial settlements. The one day in advance market is divided in 3 sessions: the first two of which function at the declared prices, while the third one - at the margin prices. The intra-day market also operates on the basis of multi-session trade: it is proposed to introduce 6 intra-day auctions and continuous trade. The balancing market is represented by two segments: the balancing power market and the balancing energy market, which together allow to introduce combined dispatching in the energy system. The authors have identified significant advantages of this model compared to the existing one, which will ensure operational efficiency of the competitive electric energy market in Ukraine.