More transparency and opportunities: Verkhovna Rada brings Ukraine closer to the EU energy market
23 July 2025 09:15
Ukraine and the European Union are already physically connected by energy networks, but new legislation approved by the parliament on July 22 will help Ukraine and the EU unify the rules of the game in the energy market and make them transparent. What opportunities will this open up for Ukrainian and European participants, "Komersant Ukrainian" found out.
An important, but not the last step has been taken towards the integration of the Ukrainian energy market into the EU market. The draft law No. 12087-d “On Amendments to Certain Laws of Ukraine on the Implementation of European Law on the Integration of Energy Markets, Improving Security of Supply and Competitiveness in the Energy Sector” – this is its full title – was adopted in the first reading. The second reading is scheduled for the fall. And the full synchronization of electricity markets is scheduled for early 2027. But without the first step, there will be no subsequent ones.
What do legislative innovations promise?
The adoption of new legislation will improve the reliability and quality of electricity supply and strengthen the protection of Ukrainian consumers. This is how Svitlana Hrynchuk, Minister of Energy of Ukraine, assesses the importance of legislative innovations.
“The new legislation will open up new opportunities for Ukrainian business. Exports and imports of electricity, integration of balancing markets with the EU, and accession to European balancing platforms will be carried out in accordance with transparent European rules. This will also increase the flexibility of the energy system and access to EU reserves,” the Energy Minister emphasizes.
And one more bonus. According to the official, the electricity supplied to the EU will be exempt from the cross-border carbon tax (CBAM), which is also very important.
Andriy Gerus, chairman of the Parliamentary Committee on Energy, Housing and Utilities, also emphasizes the importance of adopting the new legislation.
“This is a law that synchronizes the work of our electricity market with the European electricity market, and it simplifies and makes the export and import of electricity virtually automatic. This will be beneficial for our producers, as they will be able to export more easily to neighboring EU countries. And it will be useful for our energy system, because if necessary, we will be able to import this electricity from neighboring countries more easily, using simpler automated procedures, whenever we need it,” the MP said.
How will the common energy market work?
In fact, even now Ukraine has the opportunity to receive electricity from the EU countries when needed, and Ukrainian producers can sell electricity produced in Ukraine to the EU. So what will change? Darya Orlova, an electricity market analyst at ExPro, explains.
“Currently, trade is mostly based on agreements between companies. That is, there is a company in Ukraine, it finds a counterparty in Europe and can trade with it, but such trade is not predictable. This is mostly because you need to reserve a crossing there, to somehow build your portfolio. Here, a producer submits an application to sell electricity in Ukraine, and it can be quickly accepted somewhere in Europe. This will expand both supply and demand in the market, and it will allow for a more efficient price, because there is a deficit in Poland, and we have a surplus,” says Daria Orlova.
In other words, such trading will take place in real time and will allow for a quick response to price fluctuations. At the same time, according to Daria Orlova, Ukrainian traders should not worry too much about learning the new rules.
“I know that there are a lot of concerns from traders and suppliers that it will be a different market. In fact, the submission and acceptance of orders will be the same. That is, globally, traders will not have to learn something very new. However, the market will be more balanced and these cross-border crossings between Ukraine and neighboring countries will be used more efficiently,” the expert notes.
It is planned that the Ukrainian energy market will become a full-fledged part of the European market around 2027. What else does it take time for? Darya Orlova, electricity market analyst at ExPro agency, explains.
“This is mainly due to the further development of the relevant regulatory framework. The National Electricity Regulatory Commission of Ukraine has to adjust the legislation, and the transmission system operator has to do the same. That is, we are talking about the formation of the relevant regulatory framework,” the analyst notes.
It is also worth recalling that the adoption of the new legislation is in line with Ukraine’s international obligations. As you know, the implementation of European energy law is one of the parts of the Ukraine Facility plan. This is a program of financial support for Ukraine from the European Union for 2024-2027, which provides for Ukraine to receive 50 billion euros from the EU, tied to the implementation of several dozen reforms. This plan also includes integration into the European Union’s energy market.
Author: Serhiy Vasylovych
