The Ukrainian Wind Energy Association (UWEA) has raised concerns about potential risks for electricity producers if a new dispatching mechanism is implemented without addressing compensation for incurred costs. The association emphasizes that this change could significantly impact the financial stability of power plants, particularly given the ongoing risks posed by war and damage to network infrastructure.
According to UWEA’s spokesperson, Andriy Konechenkov, the dispatching mechanism involves new rules for adjusting electricity generation based on the current state of the power grid. This means that power plants may need to alter their output unexpectedly, which can lead to financial burdens for producers.
Konechenkov provided an example where a wind power station plans to operate under specific conditions but may be forced to halt operations due to damage from shelling. In such cases, the responsibility for lost production would fall on the producer, not the grid operator.
“The dispatcher limits production to relieve and stabilize the network’s operation. However, all financial losses are borne by the wind farm or any energy facility that has to stop operations,” Konechenkov explained. This situation raises concerns not only about the technical balancing of the energy system but also about the equitable distribution of financial responsibilities when generation is curtailed due to network damage or other systemic issues.
The association stresses the need for a fair distribution of costs among all market participants, funded through the dispatching tariff from Ukrenergo. Konechenkov stated, “It is crucial that if such situations arise, the burden does not fall solely on the affected energy facility but rather on the entire market. The market can absorb these costs through the dispatch management tariff.”
In Konechenkov’s view, the dispatching mechanism should be integrated into the existing market model to ensure that costs related to managing systemic limitations are covered by the dispatch management tariff, rather than being shifted to individual power plants.
Previously, the European Business Association reached out to Yuriy Vlasenko, head of the National Commission for State Regulation in the Spheres of Energy and Utilities (NERC), regarding the initiative by NEC Ukrenergo to implement the dispatching mechanism and amend market rules.
The Ukrainian Wind Energy Association has expressed serious concerns regarding a proposed dispatching mechanism that could impose financial burdens on electricity producers. They advocate for a fair cost distribution model to protect energy facilities from unforeseen operational changes due to network issues.