The G7 countries created the energy Ramstein for Ukraine.
This was announced on November 4 by US Secretary of State Anthony Blinken.
Given the apparently deliberate attempts by Russia, by President Putin, to destroy as much of Ukraine’s critical infrastructure as possible – in particular, the power grids and facilities needed to heat houses so that hospitals cannot function, schools cannot be heated and have no power supply – we have determined that together we can do a lot to help the Ukrainians,” Blinken said in German Munster following the G7 ministerial meeting.
He said that the G7 countries have created, in fact, a separate mechanism to understand what the needs of Ukraine are and what each state can offer from its side.
This is a bit like the Ramstein process of helping Ukraine with its defense needs. So we are doing the same, only in the energy sector,” the US Secretary of State said.
At the end of October, the state electricity trader Energy Company of Ukraine (ECU) made a test import of electricity from Slovakia. The company delivered only 1 MW at 12 noon on 27 October.
ECU was created on the initiative of Rostislav Shurma, Deputy Head of the Office of the President (OP).
At the end of October, Rinat Akhmetov’s D.Trading and Yaroslav the Wise’s ERU also tested the possibility of importing electricity from the EU.
In early November, there were no crossing buyers for electricity imports at Ukrenergo auctions.
Ukraine can import electricity from Poland, Slovakia, Hungary and Romania.
The total technical capacity of electricity imports to Ukraine from the EU is 800 MW. In particular, it is technically possible to import 600 MW from Slovakia, Romania and Hungary.
However, Ukraine should not count on importing electricity from Hungary. Prime Minister of this country Viktor Orban is Putin’s ally and, in exchange for political loyalty, receives gas and oil at preferential prices from Russia.
The publication “Monopolist” writes that there is a physical throughput, and there is a permitted one.
In June, when Ukraine began exporting electricity to the EU, the permitted capacity was 100 MW. It gradually increased every month, and by the end of October, the European Association of System Operators agreed to increase commercial electricity exchanges between Ukraine and the EU – up to 400 MW for export and up to 500 MW for import.
According to Ukrenergo, the available transmission capacity for electricity imports needs to be increased from the current 500 MW to 1,000-1,500 MW.
Theoretically, the completion of the restoration of the Rzeszow-KhNPP high-voltage line will allow expanding this possibility.
Ukraine, together with Poland, planned to put it into operation before the beginning of 2023. This will increase the export of electricity by approximately 1 GW.
As a result, the physical capacity of electricity exports to the EU and imports to Ukraine will increase to 1,500 MW.
In addition to the limited capacity to import electricity from the EU, the second obstacle is its higher price than in Ukraine. On November 3, in Ukraine, the cost of one megawatt-hour (MWh) of electricity cost 90 euros. In Poland, 1 MWh cost 127 euros, in Slovakia 143 euros, in Hungary 145 euros, and in Romania 185 euros.
Thus, as a result of the start of full-fledged commercial imports, there is a difference between the price of electricity with the EU and the price in Ukraine.
This difference will be covered either by the business, if it wants to purchase electricity at the price of the countries with the EU, or by the state at the expense of funds from the budget, Energoatom or the Ukrenergo tariff.
Payment for emergency assistance of electricity from the EU is made at the tariff of Ukrenergo.
Source: Racurs
