Ukrenergo sells 250MW of electricity export capacity at monthly auction

Ukrenergo, the national electricity transmission operator, sold 250 MW of electricity transmission capacity for export in January 2009 for UAH 8.1 mln at its first monthly auction, Interfax reported yesterday. The lots were bought by private Vostokenergo and state-owned Ukrinterenergo. Yegor Samusenko: Ukrenergo’s first monthly auction for electricity export capacities followed last week’s annual auction. All of the 250 MW capacity sold at yesterday’s auction will be loaded with electricity produced by Zakhidenergo (ZAEN), the only power plant in Ukraine connected to the European Union electricity grid. Both auctions signal a milestone in the liberalizing of electricity exports from Ukraine. Since electricity produced in Ukraine is cheaper than in the EU and is expected to remain so in the mid-term, we anticipate new investments coming to Zakhidenergo in order to increase its export capacities. We forecast electricity exports from Ukraine to grow 2.4x yoy in 2010 and by 10% CAGR in 2011-2015.