How can Ukraine complete the integration of its electricity sector with the EU?

To fully integrate the Ukrainian energy market into the European system, it is necessary to continue implementing European legislation and the liberalization of the domestic market, as analyzed by the Dixi Group.

Also, due to the war, the potential of cross-border trade is not being used to its full capacity, which also slows down the process. Currently, ENTSO-E limits the use of interconnectors (maximum import 1,700 MW, export 550 MW).

Another step to be taken along the way to full integration is that spot markets and electricity balancing markets are not yet integrated with the corresponding market segments in EU countries. Barriers of a legislative and regulatory nature currently stand in the way of this taking place.

In addition, integration will require Ukraine to deepen electricity market integration with the EU, to continue the implementation of EU legislation that regulates the operation of the market and international trade, and to continue the liberalization of the internal electricity market. Further, efforts must be made to develop electricity networks, in particular new interconnectors, and to improve the technical conditions for the reliable operation of Ukraine’s energy system.