NEC "Ukrenergo" plans to hold another round of auctions this year for new balancing capacity to operate in the ancillary services market, specifically for Automatic Frequency Recovery Reserves (aFRR), and expects to allocate at least 300 MW there, said Acting Chairman of the Board Alexey Brecht.
"We will conduct such auctions, and this year we will offer even slightly more than 500 MW (...). And, at least from my understanding of the audience and their aspirations, I expect that we will allocate an additional minimum of 300 MW at the next auction," Brecht stated in a brief interview with "Energy Reform".
He noted that, most likely, "Ukrenergo" will conduct these auctions under the condition that the facility must be operational no later than one year after the auction. According to him, proposals from potential participants to extend this deadline have been received, but "Ukrenergo" leans towards the belief that one year is sufficient.
"We have an example (the connection of OKKO Energy Storage System with a capacity of 20 MW - ER), which started the conversation about being able to build in less than six months after the auction," Brecht pointed out.
As reported, recently the OKKO Group of Companies prematurely commissioned an energy storage installation (ESI) with a total capacity of 20 MW for operation in the ancillary services market. "OKKO" participated in the first special auction for the long-term acquisition of ancillary services from "Ukrenergo" in the summer of 2024. During this auction, investors guaranteed the construction of nearly 99 MW of new capacities to provide frequency support reserves (FSR) for a period of five years (covering almost all of "Ukrenergo's" needs). These capacities were to be commissioned by October 2025, and it was assumed that these would primarily be ESI.
In 2024 (August and December), "Ukrenergo" held two more special auctions for the provision of ancillary services – this time for Automatic Frequency Recovery Reserves (aFRR). They closed just over 400 MW of the 1 GW demand for such capacities from "Ukrenergo". According to the conditions of the August and December 2024 auctions, the capacity was to be commissioned by October 2025 and January 2026, respectively. The auctions were aimed, in particular, at gas installations and biomass stations.