Ukraine to integrate energy market with EU: Parliament passes market coupling law

The Verkhovna Rada of Ukraine (Ukraine's parliament) has adopted Law No. 12087-d on the integration of the Ukrainian and European Union energy markets.

Source: Verkhovna Rada's press service

Details: The full title is The Law of Ukraine on the Implementation of European Union Law and the Integration of Energy Markets, Enhancing Security of Supply and Competitiveness in the Energy Sector.

The law aims to establish a comprehensive legal framework for the full integration of Ukraine's electricity market into the EU's internal energy market.

In particular, it creates the legal basis for market coupling in the day-ahead and intraday markets with European trading zones.

This means that electricity trading will be coordinated in terms of prices and volumes both for the following day and within the same day.

The law also implements the European model of risk preparedness in the electricity sector and introduces capacity mechanisms.

In addition, new ways of flexibly managing supply and demand will be introduced, including the aggregation of small energy sources and tools to control when and how much electricity consumers use.

The law ensures compliance with ENTSO-E requirements: Ukraine's energy system will operate under the standards and rules of the European electricity transmission network (ENTSO-E) to ensure security and compatibility with EU countries.

A total of 47 amendments were taken into account (including partial and editorial ones), out of 1,358 proposed amendments.

Background: The average weighted price on Ukraine's day-ahead electricity market in March was UAH 7,359 (about US$169) per MWh, which is 26% lower than in February.

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