On February 12, the average price for electricity on the day-ahead market in Ukraine decreased by 30%, reaching 6,212 UAH per MWh. This price drop is attributed to a surplus in supply.
According to the Market Operator, there was a rise in supply beginning February 10. On February 11, the supply volume reached 130,000 MWh, which is 20% more compared to the previous day. Meanwhile, demand fell to 117,000 MWh.
Analyst Orlova stated that the shift to a surplus mode resulted from the introduction of additional generating capacities and the lifting of technical restrictions. Specifically, several nuclear power blocks had their restrictions lifted.
Another contributing factor was the increase in average daily temperatures following cold spells, which impacted consumption levels.
Additionally, Orlova noted that the existence of restrictions for certain consumers does not always correlate with spot market prices.
“The presence of deficits or restrictions for some consumers does not automatically imply high prices on spot markets. In many cases, these restrictions can be related to transmission issues, network overloads, or local failures. Thus, resources might be physically available in the system, but they cannot be delivered to specific consumers due to network constraints,”
said the analyst.
Electricity prices in Ukraine dropped significantly as market supply increased and demand decreased, primarily due to new generation capacities and warmer temperatures.