The Verkhovna Rada of Ukraine has adopted in full the revised draft law No. 12087-d “On Amendments to Certain Laws of Ukraine Regarding the Implementation of European Law Provisions on Energy Market Integration, Enhancement of Security of Supply, and Competitiveness in the Energy Sector.”
The document is aimed at integrating Ukraine’s electricity market into the EU energy market.
“For Ukraine, which is operating under constant attacks on its energy infrastructure, this decision carries particular importance. Energy security for us is not only about repairs, protection, and recovery. It is also about European market rules, system flexibility, and access to a broader space for trade, balancing, and coordination. Importantly, the adoption of this law also opens the way to receive €500 million under the European Union’s Ukraine Facility programme,” said First Deputy Prime Minister of Ukraine – Minister of Energy Denys Shmyhal.
The law improves legislation in the electricity sector and is aimed at:
- implementing EU norms into Ukrainian legislation;
- enhancing energy security;
- strengthening consumer protection;
- developing a competitive electricity market;
- integrating the electricity markets of Ukraine and the European Union.
The law establishes a comprehensive legislative framework for further integration of Ukraine’s electricity market into the single European energy market. This will increase liquidity in Ukraine’s electricity market, enable more efficient use of cross-border transmission capacity with EU Member States, optimize the use of available generation resources, and enhance the stability of the power system.
In addition, the law provides for:
- accession to European balancing platforms to increase the flexibility of Ukraine’s integrated power system;
- strengthened cooperation between the national regulator and European regulatory authorities;
- joint risk preparedness planning with European partners, contributing to improved energy security.
During the second reading, provisions were introduced and supported concerning, inter alia:
- the operational model of the integrated day-ahead market;
- clarification of market participants subject to decisions of Agency for the Cooperation of Energy Regulators (ACER);
- the introduction of financial transmission rights for cross-zonal capacity;
- уточнення provisions regarding the mandatory implementation of risk preparedness plans by market participants;
- уточнення rules on the admission of other NEMOs from EU and Energy Community countries to Ukraine’s electricity market;
- clarification of the timeline for the removal of price caps.
The adoption of this law marks an important step towards integrating Ukraine’s electricity market into the EU internal energy market and fulfilling Ukraine’s international obligations, including those under the Energy Community Treaty.
