NEURC Approved the Report on Adequacy of Generation which Assumes both 2 GW of Rapid Capacities and Storages

The National Energy and Utilities Regulatory Commission approved the Report on the assessment of adequacy (sufficiency) of generating capacities for 2019, which assumes the construction of 2 GW high-speed (quick start) highly maneuverable capacities for balancing power system and 2 GW of energy storage systems.

This decision was made on March 13 at a meeting of the regulator.

During the presentation of this report, the Director for Management of the Integrated Power System of Ukraine - the Chief Dispatcher of NEC Ukrenergo Vitalii Zaichenko noted that as of today there is a shortage of maneuverable and regulating capacities in the power system. To cover it, it is necessary to build and put into operation 2 GW of fast-start generation (with a power deployment from 0 MW up to a maximum value over 15 minutes), as well as 2 GW of energy storage systems.

“High-maneuverable generation is really needed right now in this volume, but we understand that it is not advisable to prepare an auction for 2 GW at once, so we will prepare (terms for the auction - ed.) broken down by years in proportion,”- he said. Zaichenko added that the approximate cost of rapid generation (gas piston or gas turbine plants) is $700/kW of installed capacity.

"About energy storage systems, there is the following breakdown: 200 MW should be installed as a primary reserve in the near future; 500 MW - in the next two years to provide a secondary reserve (upstream) and another 1200 MW in the next 5 years," - Zaichenko explained, adding that 200 MW of energy storage systems should be built before the transition of the Integrated Power System of Ukraine in the isolated mode, which is foreseen in the framework of the integration process in ENTSO-E.

The report also envisages the following development trends for different types of generation:

• Reduction of thermal generation capacity due to the absence of new units and non-compliance with carbon dioxide emission standards; total thermal generation capacity in the energy mix is assumed to be 12 GW;

• High rate of implementation of RES;

• Balancing units should be put into operation at 20% of RES capacity;

• Hydropower development is expected to be minimal.

10:55 / 13 March, 2020

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