The Alternative Model of Competitive Electric Energy Market of Ukraine (Part 2)

The development of a competitive electric energy commodity market in Ukraine does not guarantee the creation of the necessary conditions for the security of electricity supply and the adequacy in developing the energy system. The conflict of commercial interests with the physical needs of the energy system causes the need to introduce the capacities market as a complementary segment to the electric energy commodity market. Ukraine has determined that the capacities market will function in the form of competitive procedures according to the targeted scope-oriented approach. Ukrainian capacities market has not yet been launched, but it is already possible to assume its potential ineffectiveness and inefficiency. Significant disadvantages of the electric energy cycle of Ukraine prove the insufficiency of a targeted approach to its organization. In addition, there are also pathological systemic problems with regard to the electrical energy industry of Ukraine (narrow diversification, inflexibility, heavy overtime load of power units, isolation and rapid development of renewable sources of electricity generation). The article proposes an alternative model of Ukrainian capacities market, which provides for: the organization of the balancing capacities market for the preliminary dispatching of both physical and commercial electric energy flows in the energy system; formation of the market of traditional capacities to ensure the adequacy of the development of the energy system; development of the market of alternative capacities for the integration of renewable electric energy generation, taking into account the requirements of flexibility of the energy system. The authors have identified significant advantages of this model compared to the proposed one, which will ensure operational security of electricity supplies and adequacy of the development of the energy system.