Supply surpassing demand by 9-10 times on May 24-30, 2021, crashed the price of "base" by 26%, down to 790 uah
Prices for base load of day-ahead electricity in the Integrated Power System of Ukraine during May 24-30, 2921, compared to a week before (May 17-23, 2021), plummeted by 26% , down to 792.46 UAH/MWh, due to excess supply of generating companies and other market players over demand by 9-10 times at some hours of consumption schedules, as evidenced by the data of the SE Market Operator and the NEC Ukrenergo.
As noted by SE Market Operator, the price crash was caused by an increased sale nominations of quoted cheap by electricity generators and some traders.
"The main driver of price fluctuations during the last week was an increase in cheap supply from electricity sellers amid a significant drop in demand (-8.1%)," the report said.
According to the SE Market Operator, on May 24-30, 2021, day-ahead electricity was in surplus in the the Integrated Power System of Ukraine of Ukraine. In general, the surplus of day-ahead electricity was created by electricity producers, whose share on May 24-30, 2021, in the structure of day-ahead electricity sale nominations in the Integrated Power System of Ukraine of Ukraine was up to 80%, and their share in the sold volumes was 40%-50%.
In particular, on May 29-30, 2021, the sale nominations of day-ahead electricity in the Integrated Power System of Ukraine during some hours exceeded the volumes purchased by 9-10 times. With the increase of the surplus sale nominations of day-ahead/intraday electricity, the volumes of electricity in the balancing market increased, and its price plummeted down to minimum.
According to the NRC Ukrenergo, on May 25-26, 2021, the price of payment for a positive imbalance from 9:00 to 18:00 was at 10 UAH/MWh.
As previously reported by ExPro, last week the NEURC reported that in May 2021 traders and electricity suppliers submitted suspiciously low priced nominations of day-ahead electricity, so, the NEURC announced to study the situation as market manipulation.