The Company's modern, state-of-the-art equipment meets all technical requirements for operations on the market, provides a competitive advantage, and allows it to occupy a leading position in the UPS of Ukraine. The company is actively developing hydro-pumped storage technologies to ensure a sufficient level of reserves, reliable and affordable power supply to consumers, and integration of Ukrainian UPS into the ENTSO-E.
The keynote of the European energy strategy is the reduction of the use of fossil fuels and the "green" transition. In addition, compliance with the principles of sustainable development shall be an important component of business activities. The increase in the supply of electricity produced from renewable sources makes Ukrhydroenergo an attractive partner. Our independence from fossil fuels provides an additional advantage in the context of sustainable development and corporate image.
The company's entry into the European energy markets will provide an opportunity to use the existing hydro resources most efficiently. During the reduction of electricity consumption and its surplus in the UPS of Ukraine, the Transmission System Operator has to issue dispatch commands for the unloading of power units to ensure reliable operation of the system, especially about frequency, voltage, and current in critical nodes and components.
Commercial exports in hours of electricity surplus in the power system of Ukraine would help European countries to reduce their dependence on Russian gas and coal, and the Company to receive additional income, which can be used to cover the costs of special duties to ensure general public interest and investments in future development.
One of the Company's advantages is the ability to deliver according to any schedule within the transmission capacity of electrical networks and its quick response to changes in demand. Ukrhydroenergo produces electricity from hydro resources, allowing the Company's power plants to change output almost instantly. The company actively uses this advantage when concluding contracts and balancing the power system. In addition, the company is open to discussions with foreign counterparties on flexible terms of electricity supply.
Hydropower plant equipment is an elastic reserve for both frequency and power regulation and power system balancing. To ensure the reliability of Ukrainian UPS and the sound quality of electricity, our Company actively participates in the ancillary services market. Eight power plants of the company have successfully passed tests of electrical installations.
In the meantime, Ukrhydroenergo plans to join the cross-border exchange of frequency restoration reserves and balancing electricity, which is also planned to be bound by the system operators of the countries that are part of the ENTSO-E association in the TSO-TSO operating model.
The availability of a large number of power units allows Ukrhydroenergo to conduct a flexible maintenance campaign and maintain stable electricity production at a high level.
Other advantages of the Company:
Strategic importance for the economy of Ukraine.
According to the resolution of the Cabinet of Ministers of Ukraine No. 83 dated 03/04/2015, PJSC "Ukrhydroenergo" is included in the list of state-owned assets of strategic importance for the economy and security of the state.
Low production costs.
The cost of electricity produced at hydroelectric power plants is significantly lower than that of other types of generation due to the absence of a fuel component.
Since the introduction of the new electricity market, the Company's profitability has been increasing. As a result, upon the results of nine months of 2021, Ukrhydroenergo took first place in the rating of state-owned companies that demonstrated the best financial results.
High level of financial transparency and information openness of the Company.
Positive reputation among creditors (both domestic and international).