Regulation of Energy Market in Ukraine
In 2024, the regulation of the energy market in Ukraine underwent changes aimed at improving the regulatory framework and integrating it with European standards
In particular, the NERC adopted Resolution No. 178 dated January 24, 2024 . This innovation helps to increase flexibility and stability in the energy market, providing attractive conditions for investors and stimulating the development of green energy in Ukraine.
The specialists of the Natural Resources and Energy industry group of BDO in Ukraine analyzed the main differences between the NERC resolutions of 2019 and 2024 :
1.??? The words “and at an auction price” were deleted, and “purchase of services under the market premium mechanism” was added.
2.??? The Standard Agreement for the Sale and Purchase of Electricity under the “green” tariff has been updated, and the Standard Agreement on the provision of services to increase the share of electricity production from alternative sources has been revised.
3.??? The Standard Agreements on the Market Premium Mechanism and Integration of Renewable Electricity Producers into the Balancing Group were approved.
5.??? Amendments were made to the Market Rules and Regulation of the Guaranteed Buyer.
On 27.03.2024, the NERC approved the Requirements for Ensuring Integrity and Transparency in the Wholesale Energy Market , which were developed to comply with the requirements of the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Prevention of Abuse in Wholesale Energy Markets” dated June 10, 2023 No. 3141-IX, which transposed EU Regulation No. 1227/2011 on Integrity and Transparency in the Wholesale Energy Market (REMIT) into Ukrainian legislation.
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This document defines:
The approval of these Requirements was preceded by an open and transparent discussion of their draft with all stakeholders, including participants in the natural gas and electricity markets. The document was also approved by the Antimonopoly Committee of Ukraine.
Also, on 08.05.2024, the NERC published a draft of improved License Terms for the Electricity and Natural Gas Market for REMIT requirements to receive comments and suggestions. It provides for the alignment of the requirements of the License Terms with the provisions of the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Prevention of Abuse in Wholesale Energy Markets” , in particular, the following requirements for licensees are established:
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According to BDO in Ukraine , in 2024, the regulation of the Ukrainian energy market is undergoing stages of improvement to integrate with European standards. The NERC Resolution No. 178 of January 24, 2024 introduced a market premium mechanism and updated the electricity purchase and sale agreements under the “green” tariff. Approval of the Requirements for Integrity and Transparency in the Wholesale Energy Market on March 27, 2024 , defined the rules for manipulation and restrictions on insider information. The License Terms for market participants were also improved. These changes will help increase the investment attractiveness and transparency of the Ukrainian energy market. By harmonizing with European standards, the Ukrainian market is becoming more open and predictable for foreign investors, which stimulates the development of renewable energy sources and technological innovations.
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The material was prepared at the request of Liga:Zakon
* This analytical material is the result of the analysis and conclusions of BDO in Ukraine and does not constitute legal, financial or professional advice. All material is provided for informational purposes only and is subject to change without notice. It is recommended that you seek professional advice from the relevant BDO in Ukraine experts to address specific issues.