Ukraine has become a leader in electricity prices
According to the report on the situation in European electricity markets for the 1st quarter of 2020, published by the European Commission, Ukraine leads in wholesale electricity prices on the day-ahead market.
The director of the economic policy department of the Federation of Employers of Ukraine, Sergei Salivon, announced this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“This report shamed skeptics who do not believe in Ukrainian reforms - Ukraine took two prizes at once, first and third, in terms of wholesale prices on the day-ahead market, thereby humiliating members of the European Union and other European countries.
The average wholesale price in the trading zone of the Burshtyn energy island turned out to be the highest in Europe, at 52 euros per megawatt-hour, and in the interconnected energy system itself it was slightly lower, 9 euros per megawatt-hour, this is 46,9rd place, but this is significant higher than the European average, where the average price was 3 euros per megawatt hour.
Moreover, the research results were still slightly affected by punitive measures since they began to be introduced in earnest in March. It seems that at the end of the second quarter, the result of Ukrainian reforms in the energy sector will be even more impressive; the gap between Ukrainian prices and European ones will even increase due to the fact that in Europe, during quarantine restrictions, prices dropped significantly during the peak, but in our country they did not decrease so significantly.
Moreover, in my opinion, Ukraine has every chance to continue to retain this leadership. European prices for the year, in the first quarter of 2020 compared to the first quarter of 2019, decreased by 33%. This is explained by the ongoing decline in energy prices, partly due to the quarantine measures that began in March, which led to a decrease in transportation and a decrease in industrial production. Ultimately, a full-fledged economic crisis developed further.
It is not possible to make a similar comparison for Ukraine, because our new electricity market has been fully operational since July 1 and even since August 1. And in the first quarter of last year, we simply did not have a day-ahead market. The market for electricity delivery within the next XNUMX hours is something of an indicator for electricity prices in the country.
As the study shows, as a result, in the first quarter, a price level comparable to Ukraine was observed only in catastrophically energy-dependent Greece, which does not have its own nuclear power plants and the like. There, electricity cost 53,4 euros per megawatt-hour,” the economist said.
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