The energy market in wartime: how Ukraine balances the system through imports
11 February 16:38
In early February, Ukraine nearly doubled its electricity imports compared to January. The regulator explains that the key factor in this was the increase in price restrictions in the spot market segments—a decision that sparked debate but allowed for the rapid import of additional electricity from abroad.
This was stated during a report to the Verkhovna Rada by the head of the NEURC, Yuriy Vlasenko, according to Ukrinform, as reported by "Komersant Ukrainian".
What exactly has changed
In January, electricity prices in Ukraine’s neighboring countries rose, making imports less economically attractive. Given the domestic shortage, this limited the ability to balance the power system.
In coordination with the Cabinet of Ministers, the regulator decided to temporarily raise price caps on the day-ahead market and the intraday market. The upper price limit rose to UAH 15,000 per MWh and will remain in effect until the end of March.
What effect did the decision have?
According to Vlasenko, electricity imports almost doubled in the first ten days of February compared to the beginning of January. Daily volumes reached about 50,000 MWh, which is approximately one-fifth of the country’s total daily consumption.
The regulator calls these figures record highs for the current period and emphasizes that without adjusting price restrictions, it would not have been possible to attract such volumes.
Why the system came under pressure
The end of January and beginning of February were one of the most difficult periods for the power system in recent times. Due to Russian attacks, losses in generating capacity during peak hours reached up to 40% of actual consumption.
Under these conditions, the balance was maintained through several tools: emergency reserves, imports, and consumption restrictions.
What this means for business
The NEURC emphasizes that the regulator does not set final electricity prices for business and industry — they are determined by the market. At the same time, raising price caps means that electricity in short-term segments may cost more, but this is seen as a fee for the physical availability of the resource in conditions of shortage.
The current decision is temporary and will remain in effect until the end of March. The regulator’s further policy will depend on the situation with shelling, the state of generation, and import opportunities. The authorities effectively acknowledge that in wartime conditions, the energy market is increasingly operating in crisis management mode.
