Energy Community Secretariat published its 2019 implementation report. (2)

Energy Community Secretariat published its 2019 implementation report.

Implementation in the electricity sector of Ukraine is moderately advanced (50%). Implementation in the renewable energy sector of Ukraine is well advanced (63%). Implementation in the energy efficiency sector of Ukraine is well advanced (74%).

Brief conclusions regarding Ukraine in energy and especially RES markets:

  • Regulator’s decision on the certification of the TSO is not in line with the acquis. The DSO are legally unbundled, functional unbundling is still to be completed;
  • The new electricity market model, subject to strong regulation through various price caps set by the national regulatory authority and excessive public service obligations (PSO) for state-owned generation companies imposed by the Cabinet of Ministers, is likely to keep the market largely foreclosed in practice;
  • According to the Law, NEURC was required to phase out cross-subsidization between different categories of consumers before market opening on 1 July 2019. However, the prices for households remain the same and do not cover the costs of the universal service suppliers. The difference is covered by the Guaranteed Buyer through PSO;
  • A revised National Renewable Energy Action Plan (NREAP) was due by 30 June 2018, owing to a lower share of energy from renewable sources than the projected trajectory. It is neither submitted nor adopted;
  • Network operators must develop network investment plans to be approved by the Regulator in order to accommodate future increases of renewable energy;
  • Self-consumption of electricity from renewable energy sources acknowledged in the legislation is not implemented yet.

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