Romania will export electricity to Ukraine worth 11 million euros after Ukraine lost 9,000 MW of installed power production capacity due to attacks by the Russian Federation. This is the first contract the two countries have signed for this purpose in the past two years.
The 3-month contract stipulates that Romania will deliver over 110,000 MWh to Ukraine from July to September 2024. This agreement is the largest reported this year among all borders where Romania has interconnections.
The estimated average price of the exported energy is 100 euros/MWh, bringing the total projected value to over 11 million euros. The contract’s pricing formula includes Romania’s spot PZU quotation, a guaranteed seller margin of 2.75 euros/MWh, and a cross-border transport cost of 2.8 euros/MWh.
The seller is Premier Energy LLC, part of the Premier Energy PLC conglomerate owned by Czech billionaire Jiri Smejc, who also controls the company of the same name in the Republic of Moldova, recently listed on the Bucharest Stock Exchange (BSE). The group is involved in the supply and distribution of gas and electricity, and it owns a portfolio of renewable energy production units and a gas cogeneration plant.
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The buyer is the Ukrainian state company JSC Energy Company of Ukraine (ECU), established in 2022. ECU handles electricity trading and imports and is one of the largest players in the energy sector in Ukraine.
Premier Energy PLC is the largest electricity distributor and supplier in the Republic of Moldova, with a market share of about 70%. In Romania, the holding owns Premier Energy LLC, Ligatne Gas LLC, B.E.R.G. Sistem Gaz JSC, and Premier Energy Trading LLC.