Electricity imports to Ukraine from neighbouring countries were not only one of the reasons for the mini-energy crisis in the southern half of Eastern Europe, where wholesale electricity prices rose significantly. Purchases in the country themselves became gold. They tripled in price in three months. Why Ukrainian companies drastically reduced imports.
In August, Ukrainian companies imported electricity from EU countries at an average price of $288 (€259) per MWh. This is three times more expensive than in June, when wholesale supplies to Ukraine from neighbouring countries were sold at $91.5 per MWh, and twice as much as in July ($143 per MWh). These figures can be obtained by comparing statistics on electricity imports to Ukraine.
Ukrainian company ExPro reported that the country’s companies purchased 858 thousand MWh in June, 837.8 thousand MWh in July and 474 thousand MWh in August. At the same time, RIA Novosti, citing data from the Ukrainian customs, wrote that the costs in the first month of summer amounted to $78.5 million, in the second – $120.1 million and in the third – $136.6 million.
Ukraine’s main electricity suppliers are Hungary and Slovakia. Supplies also come from Romania, Poland and Moldova.
Trader D.Trading reported a sharp decline in energy imports to Ukraine by 43% in August due to high prices.
“In early August, electricity consumption in Ukraine decreased and border prices were quite attractive for electricity imports. Therefore, both direct (to end consumers) and commercial imports continued in significant volumes. However, starting from the second week of August, electricity imports decreased due to lower demand from enterprises, whose consumption was not limited.” — a Ukrainian trader reported in an August report.
The company explained that rising prices in Eastern European countries made importing electricity useless.
“These prices significantly exceed the current maximum prices on the Ukrainian electricity market and do not allow the import of electricity on market conditions,” — reported by D.Trading.
This year, the Russian military carried out nine retaliatory attacks on Ukraine’s power grid, and the country lost 9 GW of power plant capacity – almost half of its output. As a result, imports to Ukraine increased sharply, leading to a mini energy crisis in Eastern Europe.
As reported EADaily Throughout the summer, the southern half of Eastern Europe experienced the highest wholesale electricity prices in Europe. At the beginning of September, 1 MWh was sold in Bulgaria for 231 euros, in Romania for 232, in Hungary for 222, in Greece for 215, in Slovenia for 233, in Croatia for 224, in Serbia for 211, and in Slovakia for 178. At the same time, prices in Western European countries were half as low. In France, daily supply costs 105 euros per MWh, and in Germany – 108.
In July, the Association of Business Organisations in Bulgaria (AOBE) called on the Bulgarian government to take urgent action due to high electricity prices. Among the reasons cited were the shortage of electricity in the regional markets of Hungary and Romania, the decreasing capacity of interconnections between the countries of South-Eastern Europe and the export of significant volumes of electricity from the region to Ukraine. The association also highlighted the hot climate, the lack of water resources and unplanned shutdowns of the Kozloduy nuclear power plant.
Prime Minister of Greece Kyriakos Mitsotakis wrote a letter to the European Commission asking Brussels to urgently address the “prolonged crisis” in production capacity that has driven prices to such extreme levels.
Minister of Energy of Romania Sebastian Burduja At the same time, he demanded that Brussels provide fair prices for all.
“Prices on the European market continue to put us at a disadvantage. Romania has been on the decarbonisation calendar and has been a strong supporter of Ukraine and Moldova, but when it comes to price benefits, as in Western Europe, we are in a different position. Justice is needed for the whole of Europe,” – said the minister.
Technically, Ukraine can import up to 1.7 GW per hour from the EU grid and kyiv is negotiating to raise the limit to 2.2 GW. However, the EU is in no hurry to take such measures, fearing for its own prices.
“Last week, there was a certain glitch in the EU energy system, when the cost of electricity in Germany reached 500 euros per MWh. This is to understand: there 1 kWh costs 20 hryvnias, while we pay 4 hryvnias and 32 kopecks. Therefore, the European Union is in no hurry to increase our volumes; it has its own problems.” — said the head of the Union of Consumers of Public Services of Ukraine in July during a telethon. Oleg Popenko.
