Ukraine, ready to export energy to Romania at massively discounted price
Energy producers in Ukraine have pushed up their export dates to the EU and Romania is one of the first countries to receive energy at prices over 70% lower than those currently recorded on the local market.
Before being able to export energy to its EU neighbors, Ukraine had to meet a series of preliminary technical conditions. As a result, the Ukrainian and Moldovan electricity grids were synchronized with those within the European Network of Transmission System Operators of Electricity back in March.
Energy transfers were not scheduled to take place before next year, but Ukrainian electricity transmission system operator Ukrenergo has been able to meet the necessary requirements ahead of time and received permission to begin transfers.
Starting June 30, up to 100MW can be exported to Romania from Ukraine. This is expected to increase based on the stability and security of the transmission line. Romania, Slovakia and Hungary connect Ukraine to the European electricity network. A separate power line can carry around 200MW to Poland.
The interconnections are bidirectional but Ukraine is expected to be a net exporter for the foreseeable future, according to London-based ICIS publication.
The deal is mutually advantageous. Electricity prices in Ukraine are around EUR 78.50/MWh, compared to EUR 301.50/MWh on the Romanian exchange OPCOM. Buying Ukrainian energy at a discounted price will allow Romanian operators to become more competitive. On the other side, Ukrenergo will use the income from exports to recover costs and deal with the fallout of the war.
(Photo source: Julia Burlachenko | Dreamstime.com)