Assessing the Electricity Market Performance in Ukraine

Abstract

Ukraine obliged to implement the European electricity market model and introduce the European principles of the competition policy therein. One of the tasks is the introduction of permanent and quality market monitoring. However, the basis of such monitoringis still missing. Therefore, the article proposes a methodical approach to assessing the electricity market performance as a monitoring tool, which is based on key performance indicators and allows the regulator to timely identify and control disruptions, and market participants to make effective managerial decisions aimed at achieving the overall objective of its reforming. Assessment of the electricity market performance should be based on 12 local indicators distributed over 4 components, such as balance, variability, dynamism, and proportionality. Market research can be feasibly carried out by its segments (bilateral market, day-ahead market, intraday market and balancing market), as well as by different load modes (basic, peak, off-peak). The performance level can be determined based on the radar chart by comparing the area of the obtained figure with the area of the reference one. The database of this approach is the open-source data of the transmission system operator, the market operator, and other professional participants. In the article this approach was tested in the Ukrainian electricity market for the October 2021, which revealed the following: the overall performance of the Ukrainian electricity market was at a satisfactory level, including such segments as the bilateral market, the day-ahead market and the intraday market, while the performance of the balancing market was at the low level. The strongest components were dynamism and balance, while variability and proportionality were its weakest components

Keywords

• electricity market
• performance
• monitoring
• balance
• variability
• dynamism