Power engineering

Main content and commitments of Ukraine

One of the main European integration tasks in the field of electric power industry is integration of the united power system of Ukraine into the Union of Central European Electricity Network in accordance with the requirements of ENTSO-E (European Network Transmission System Operators for Electricity). The agreement provides that in the field of energy EU-Ukraine cooperation includes the following areas:

  • implementation of energy strategies and policies and development / processing of forecasts and scenarios, improvement of the statistical accounting system of the energy sector, development of infrastructure;
  • creation of effective mechanisms for solving potential crises in the energy sector in a spirit of solidarity;
  • modernization and strengthening of the existing energy infrastructure, complete restoration and creation of a new energy transit infrastructure;
  • the development of competitive, transparent and non-discriminatory energy markets based on the EU rules and standards through regulatory reforms;
  • cooperation within the framework of the Treaty establishing the Energy Community in 2005;
  • activation and strengthening long-term stability and security of energy resources trade, their transit, exploration, extraction, purification, production, storage, transportation, transfer, distribution and marketing or sale of energy materials and products on a mutually beneficial and non-discriminatory basis in accordance with international rules, in particular, the Energy Treaty by 1994, the WTO Agreement and this Agreement;
  • achieving of progress towards establishing an attractive and stable investment climate;
  • effective cooperation with the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and other international financial organizations and instruments to support cooperation between the Parties in the field of energy;
  • promotion of energy efficiency and energy saving, including through the formulation of energy efficiency policies and the structure of law and regulatory framework in order to achieve significant progress in line with EU standards;
  • development and support of renewable energy with due regard to the principles of economic feasibility and environmental protection as well as alternative fuels;
  • promoting the Joint Implementation Mechanism of the Kyoto Protocol to the 1997 United Nations Framework Convention on Climate Change to reduce greenhouse gas emissions by implementing energy efficiency and renewable energy projects;
  • scientific and technical cooperation and exchange of information to develop and to improve  technologies in the field of energy production, its transportation, supply and final consumption;
  • cooperation within the framework of European and international standardization bodies in the energy sector.

Association bodies

Cluster 3 of the Subcommittee on Economics and other sectoral cooperation of the Association Committee

Responsible bodies in Ukraine

Ministry of Energy and Coal Industry

Expected results:

  • Separation and restructuring of NJSC Naftogaz of Ukraine»;
  • Cooperation in the field of energy, including nuclear issues;
  • Integration of Energy Markets;
  • Implementation of the Third Energy Package as a commitment under the Energy Community Treaty;
  • Strengthening the Capacity and Independence of the National Commission for the State Regulation of Energy and Utilities (NCCREC);
  • Reform of tariffs for electricity and pricing for gas and measures to ensure full payment for electricity and gas;
  • Creation of strategic oil stocks.

The state of adaptation of Ukrainian legislation and cooperation with the EU

Ukraine provides for the adoption of basic laws, also regulatory legal acts of secondary legislation, aimed at the implementation of European law in the Ukrainian legal system in the field of fuel and energy complex.

The Law of Ukraine “On the Natural Gas Market” came into force on October 1, 2015. The adoption of the law marked the fulfillment of the obligations to the Energy Community taken by Ukraine with the signing of the Treaty establishing the Energy Community and on the implementation of the provisions and requirements of the Third Energy Package of the EU (Directive 2009/73 / EU “On common rules for the internal market of natural gas” and Regulation 715/2009 “On conditions for access to natural gas transmission networks”).

The Verkhovna Rada of Ukraine adopted on September 22, 2016, the Law of Ukraine “On the National Commission, which carries out state regulation in the fields of energy and utilities”.

The Law of Ukraine “On the Electricity Market” No. 4493 was adopted by the Verkhovna Rada of Ukraine on April 13, 2022 in the second reading and in general.

On July 19, 2017, at a meeting of the Cabinet of Ministers of Ukraine, the Plan for organizing drafting acts necessary to ensure the implementation of the Law of Ukraine dated April 13, 2022 No. 2019-VIII "On the Electricity Market" was approved at the meeting of the Cabinet of Ministers of Ukraine, today more than 50 acts of secondary legislation are under development in the field of electric power engineering.

The New Energy Strategy of Ukraine for the period up to 2035 “Security, Energy Efficiency, Competitiveness” was approved on August 18, 2017.

In Brussels, on June 28, 2017, during the ENTSO-E Assembly, the signing ceremony of the "Agreement on the Conditions for the Future Consolidation of Power Systems of Ukraine and Moldova with the Continental Energy System" was held. Under the agreement procedure, “Moldelectrica SE” and all system operators belonging to the ENTSO-E Regional Group "Continental Europe” should also sign.

The agreement entered into force on July 07, 2017, after the signing of the document by a sufficient number of system operators belonging to the ENTSO-E Regional Group “Continental Europe".

ENTSO-E started to publish data on the united power grid of Ukraine on the ENTSO-E Transparency Platform online platform.

Ukraine has conducted preparatory work for the development of a project for the unification of the Ukrainian and Polish energy systems, the implementation of the Energy Bridge Ukraine-European Union project. Negotiations were conducted and a positive preliminary assessment was received from the European Commission, the leadership of the European Network of Electricity Transmission System Operators (ENTSO-E).

In 2017, the Ministry of Energy and Coal, together with the NATO Energy Security Center's Center for Energy Security (Vilnius, Lithuania), conducted command-and-staff training on critical electric power infrastructure and response to the threats to the sustainability of its operation on the basis of the NP “Ukrenergo”.

The State Reserve Agency of Ukraine, within the framework of the Concept for the Reform of the State Material Reserve System, initiated the implementation of the requirements of Directive 2009/119 / EU, which obliges member states of the European Energy Community to create minimum stocks of crude oil and petroleum products in the event of emergencies.

Together with the Energy Community Specialists, the State Reserve has calculated the minimum amount of oil and petroleum products, and has also developed a plan of measures for the work plan for the implementation of Directive 2009/119 / EC.

At present, measures are being taken to further reform the gas and electricity markets in accordance with the norms and rules of the Third Energy Package of the EU and the implementation of the provisions of the updated Memorandum of Understanding on a Strategic Energy Partnership between Ukraine and the European Union in association with the European Atomic Energy Community. Ukraine takes an active part in discussing possible amendments to the Treaty establishing the Energy Community.