On April 7, the Verkhovna Rada approved in the second reading and as a whole draft law No. 12087-d, which provides for the unification of the electricity markets of Ukraine and Europe. The release of funding for Kyiv under the EU Ukraine Facility program depends on the adoption of this document. The European Union's Ukraine Facility program provides Ukraine with €50 billion over the period 2024-27. Of this amount, €39 billion will be allocated to the state budget to strengthen macro-financial stability. .
This became known from the broadcast of the parliamentary session, and was also reported by a correspondent of Suspilny from the premises of the Verkhovna Rada.
Thus, the relevant legislative initiative was supported by 245 members of parliament.
The parliamentary committee on energy and utilities explained that the key goal of the document is to create a comprehensive legal framework for the full integration of the Ukrainian electricity market into the EU internal energy market.
What does the document provide?
- creating legal traps for market coupling “day-ahead” and intraday markets with European trading zones;
- implementation of the European risk preparedness model in the electricity sector and introduction of capacity provision mechanisms;
- regulation of interaction between the transmission system operator and the market operator to ensure cross-border exchange of electricity;
- development of new flexible market instruments, including aggregation and demand management activities;
- strengthening the role of consumers through the development of public energy associations and the institute of active consumers.
The specialized committee emphasized that special attention was paid to security of supply. This includes: implementing risk preparedness plans, strengthening coordination with regional centers, and ensuring compliance with ENTSO-E requirements.
It is known that this bill is among the necessary ones on which the release of funding for Ukraine under the Ukraine Facility program depends. The European Union's Ukraine Facility program provides Ukraine with €50 billion over the period 2024-27. Of this amount, €39 billion will be allocated to the state budget to strengthen macro-financial stability. .
UPDATED 20:50
The European Union Ambassador to Ukraine, Kateryna Maternova, welcomed the adoption by the Verkhovna Rada of draft laws that unblock Ukraine's receipt of funding under the EU Ukraine Facility program.
“Legislation in the field of enforcement of court decisions and digitalization, as well as energy market integration, will release important funding from the Ukraine Facility! I look forward to new bills from the Rada,” said Kateryna Maternova.
Ukraine's accession to ENTSO-E
On December 13, 2023, the then Prime Minister of Ukraine Denys Shmyhal announced that, thanks to the decision of the European Network of Transmission System Operators for Electricity (ENTSO-E), Ukraine has the opportunity to import up to 1.7 GW of electricity.
The next day, the now former head of Ukrenergo, Volodymyr Kudrytskyi, announced that the company had become a full member of the European Network of Transmission System Operators for Electricity (ENTSO-E). Thus, Ukraine became the 40th member of the “Energy European Union”.
Ukraine Facility program
On February 1, 2024, European Union leaders agreed on a four-year aid package for Ukraine worth 50 billion euros at the EU summit in Brussels.
On February 27, the European Parliament supported the decision to launch the Ukraine Facility. The following day, the Council of the EU approved the launch of the Ukraine Facility with a total volume of EUR 50 billion for 2024-2027.
The European Union's Ukraine Facility program provides Ukraine with €50 billion over the period 2024-27. Of this amount, €39 billion will be allocated to the state budget to strengthen macro-financial stability.
On May 22, Ukraine and the European Union signed a framework agreement on financing under the Ukraine Facility. The document defines the mechanisms of financial cooperation between the EU and Ukraine, in particular regarding the management and control of the use of funds, as well as joint measures to prevent corruption.