Elementum Energy and CEMARK Sign One-Year CfD Contract to Fix Electricity Price
Elementum Energy and CEMARK have signed a Contract for Difference (CfD), a financial power purchase agreement (PPA) to stabilize electricity prices, effective from June 1, 2025.
This price stabilization contract is between the Dniester Wind Power Plant, operated by Elementum Energy, and one of the cement plants that is part of the CEMARK group. The one-year contract is based on the CfD (Contract for Difference) mechanism, which enables businesses to forecast electricity costs and protects them against price volatility. While this mechanism has already been successfully implemented in other countries, it is still relatively new for Ukraine. This is the second such contract signed by Elementum Energy.
Under the agreement, the parties have agreed on a “price corridor” — a range within which market fluctuations do not trigger additional settlements between the producer and the consumer. If the market price exceeds the upper limit, the producer compensates the consumer for the difference; if the price falls below the corridor, the consumer compensates the producer.
Settlements are based on an indicative price benchmark and an agreed volume of electricity specified in the contract. At the same time, no physical delivery of electricity takes place — all transactions are settled on the open market.
“Price stabilization instruments for electricity are not yet widely used in Ukraine, but their implementation is critical for long-term business planning. CfD contracts, also known as financial corporate PPAs, have strong potential because they provide protection from price fluctuations and create predictable conditions for both producers and consumers. Additionally, such pilot projects enable direct cooperation between end consumers and renewable energy producers in light of European integration changes and environmental considerations,” commented Roman Volosheniuk, Commercial Director of Elementum Energy.
“Given the large volumes of consumption and market prices, electricity costs are one of the key components in the cost of cement production and require constant attention and the adoption of new pricing tools. ‘Yesterday’ this meant constant benchmarking of market supply offers to support commercial prices under the best possible market conditions, and the introduction of non-standard commercial products, such as fixed price packages. ‘Today’ these tools are supplemented by CfD and PPA mechanisms, which, in addition to hedging price risks, are important elements for the development of renewable energy in Ukraine. ‘Tomorrow’ we have a plan to implement our own electricity generation instruments, including both “green” and balancing capacities,” said Maryna Boiaryntseva, Energy Buyer at CEMARK.
About the Companies
Elementum Energy is the largest renewable energy producer in Ukraine. The company manages a portfolio of wind and solar power plants with a total capacity of 636 MW and continues to develop new projects in wind energy and energy storage systems. The Dniester Wind Power Plant (installed capacity of 100 MW) is located in Odesa region and was commissioned in phases in 2021 and 2023, with 21 wind turbines built. The estimated annual reduction in CO2 emissions is 259,583 tonnes.
CEMARK is a group of companies that includes Mykolaivcement PJSC in the Lviv region, Podilskyi Cement JSC in Kamianets-Podilskyi, and Cement LLC in the Odesa region. CEMARK is also part of CRH Group — a leading global producer of building materials.