Ukraine is preparing for “energy visa-free travel”: NEURC is introducing new rules
21 April 18:30
The National Commission for State Regulation of Energy and Public Utilities has begun implementing Law No. 12087-d, which aims to integrate the Ukrainian electricity market into the European Union’s energy market. This is stated in a press release from the regulator, as reported by [Komersant].
This is not merely about formal changes to legislation. In fact, Ukraine is attempting to restructure the principles of the energy market so that they align with the European model. This includes increasing competition, transparency, and security of supply, which is particularly important amid the war and regular attacks on the power grid.
The key element of this transformation is the market coupling mechanism
The key element of this transformation is the market coupling mechanism, i.e., the integration of markets. Its essence lies in the fact that the Ukrainian electricity trading segment is synchronized with the European one. First and foremost, this applies to the “day-ahead” market and the intraday market, which are to operate under common rules with EU countries.
In practice, this means that electricity prices in Ukraine will increasingly depend on European market conditions. Electricity will flow to where it is more expensive, and thus markets will gradually converge. For Ukraine, this opens up the possibility of importing electricity more actively during periods of shortage and, conversely, exporting it in the event of a surplus.
Regulator Preparing Major Rule Revisions
To make everything work, the regulator is preparing a major update to the rules. This involves changes to key documents that govern the electricity market, from trading rules to transmission and distribution system codes. There are also plans to update licensing conditions and approaches to tariff setting.
At the same time, new tools are being developed, without which integration is impossible. These include mechanisms for the operation of the so-called nominated market operator, capacity provision models, and rules for providing flexibility services, which allow the system to be balanced under conditions of variable generation.
In simpler terms , market coupling means that the Ukrainian market is no longer isolated. It becomes part of a larger European system where electricity prices and flows are determined not only by domestic factors but also by conditions in other countries.
This reform changes the very logic of how the energy sector operates. Ukraine is moving from a closed model to an integrated market where competition, flexibility, and interaction with Europe play a key role. It is a complex process, but it opens up new opportunities for system stability and the development of the energy sector.
