The Ukrainian Wind Energy Association and the Solar Energy Association of Ukraine have officially appealed to NEURC, urging the regulator to raise the maximum price caps on the electricity market to UAH 18,000 per MWh. This initiative is driven by growing systemic risks and the urgent need to adapt the energy market to challenging operating conditions during the autumn-winter period.
Essence of the initiative and regulatory stance
In the draft NEURC resolution, the upper price limit in the day-ahead and intraday markets is proposed to remain at UAH 15,000/MWh, and at UAH 17,000/MWh in the balancing market. However, RES associations consider these levels insufficient for the energy system's current needs, arguing that such caps hinder market pricing and impede investments in new peaking and distributed generation.
Market signals and capacity deficits
Industry experts emphasize that current price caps no longer reflect economic realities. In September, the balancing market price hit the maximum allowable UAH 17,000/MWh limit during numerous hours. Specifically, on September 8-10, morning and evening peak prices reached 100% of the active cap, demonstrating a chronic shortage of flexible capacity.
Impact on EU imports and generation
Earlier, business groups such as the Ukrainian National Committee of the International Chamber of Commerce stated that restrictive price caps hinder both electricity imports from the EU and gas-fired peaking generation. The Federation of Employers of the Fuel and Energy Complex of Ukraine also called for a review of caps ahead of the heating season.
