Ukraine will join the European electricity market from tomorrow

Ukraine and Moldova will start commercial electricity trading within the European market at the end of this month. Initially, trading will be limited only to the border of Ukraine with Romania, trading on cross-border profiles with other countries will follow later.

After the representatives of the European Association of Transmission System Operators (ENTSO-E) announced at the beginning of the month that if certain conditions were met commercial electricity flows between Ukraine and the EU could beginthe date for the start of trading was confirmed.

From June 30, cross-border electricity trading between Ukraine and Romania will start. In the initial phase, tradable cross-border capacity will be limited to 100 MW, subsequently, according to ENTSO-E, a gradual increase in available capacity will be regularly assessed, based on the stability of transmission systems and consideration of security aspects.

“This is the next step in the integration of the energy systems of these two countries with Europe and is of particular importance now that they have gained the status of EU candidate countries,” said Kadri Simsonová, European Commissioner for Energy, according to the Platts server.

The Association of System Operators also expects that trading on other profiles, i.e. Ukraine-Slovakia, Ukraine-Hungary and Moldova-Romania, will follow later, however, representatives of the association did not provide further details.

According to S&P Global Platts nuclear power plants produced roughly half of Ukraine’s electricity in 2021, supplying 167 TWh to the grid. The second largest source of electricity was coal-fired power plants.

Connecting to the European market will allow Ukraine to obtain additional funds that could replace the shortfall in revenue associated with the decline in domestic demand caused by the Russian invasion. According to the director of the local transmission system operator, the volumes of exported electricity should gradually increase to a level that should provide the country with revenues in the order of billions of euros per year, i.e. revenues comparable to fees for transporting gas through its territory.

“It will allow Ukraine to earn funds to support its electricity system in a situation where its domestic income is limited by Russian attacks. It will also provide another source of affordable electricity for the EU at a time when prices are extremely high.” added Simson.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Never miss any important news. Subscribe to our newsletter.