The draft law on certification of Ukrenergo according to the ISO model is registered:

Draft Law on Amendments to Certain Laws of Ukraine in Relation to the certification of TSO (for the introduction of the ISO Separation Model) No. 3267 dated 26.03.2020.

The draft law has been developed with the aim of certifying the transmission system operator in accordance with the requirements of the EU Third Energy Package.

The main task of the draft law is the legislative regulation of the issue of the TSO certification based on an independent system operator (ISO) model, which provides that the Ukrenergo owns the objects of the transmission system on the right of economic management, while the property remains with the state.

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The procedure for obtaining the European Commission’s conclusions on energy draft laws is published on Parliament’s site:

All draft laws, acts of the Cabinet of Ministers and other central executive bodies in the field of energy will undergo mandatory examination by the European Commission to confirm their compliance, according to updated Annex XXVII to the Association Agreement between the European Union and the European Atomic Energy Community and their Member States. If the draft laws do not comply with EU law, their adoption will, therefore, contravene Ukraine’s obligations under the Association Agreement.

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NEURC approved the new regulation documents at the meeting on April 3, 2020:

– “Limitations Management Rules”*, and a new wording of “Cross-border intersections capacity allocation procedure”.

The Rules establish the procedure and requirements for limitations management, the procedure for the determination of the capacity allocation structure, the procedure for releasing information on cross-border capacity, etc. The new Cross-border intersections capacity allocation procedure determines the auctioning rules for cross-border intersections capacity allocation.

The resolution provides for a number of innovations: on financial security for participation in the auction; on forming auction details; on auctioning conditions; on restoring the rights and refunding for returning and non-nomination, etc.

The text of the regulations is not yet available on the Regulator’s website.

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– Transmission System Development Plan for 2020-2029. This document defines the key directions and measures for the development of Ukrenergo networks, the estimated cost of implementing network development projects and the sources of their financing.

According to the plan of Ukrenergo in the next 10 years, it plans the construction of 8 new substations, renovation of 102 active substations; construction of 3 thousand km of transmission lines 220-750 kV, renovation of over 1.5 thousand km of 220-330 kV power transmission lines. The implementation of such large-scale plans will require 69 billion UAH.

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On April 8, 2020, the next meeting of the Regulator will be held, which will consider, among other issues, the resolution “On the adoption of the resolution “On the actions of electricity market participants during the quarantine period and restrictive measures related to the spread of coronavirus disease (COVID-19)”.

The Resolution provides for the taking by market participants of certain actions (or refraining from committing them) during the quarantine and within 30 days from the day of its cancellation to regulate the market situation:

– application of sanctions for non-compliance with the contract;

– indicate to the market participants, in their applications for balancing electricity, a price not exceeding 105% of the limitation of the price for DAM for this billing period;

– consumers should take comprehensive measures to pay for electricity and other services received in the electricity market under contracts. If it is technically or economically impossible to make a payment due to quarantine and restrictive measures, to notify service provider (with appropriate justification);

– regulation of work in crowded places (work with networks), etc.

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Ukrenergo launches a new product in the Balancing Market:

On April 1, 2020, a new product began to operate on the balancing market – the “two-minute reserve”. Today, this product will be relevant mainly for hydropower plants and in the future for other highly maneuverable generation.

According to the Ukrenergo’s Generation Adequacy Report recently approved by the Regulator, to ensure operational safety in the Ukrainian power system up to 2 GW of new high maneuverability and 2 GW of energy storage systems should be built in the near future.

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Guaranteed Buyer

The Guaranteed Buyer appealed to the Regulator to facilitate the execution of Ukrenergo’s financial obligations to the company:

Guaranteed Buyer appealed to the NEURC to take measures to resolve the debt situation of PJSC “NEC“ Ukrenergo ” before the state-owned enterprise.

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Energy Community

Energy Community published its “COVID-19: Security of energy supply monitoring” report:

About Ukraine was stated: “Electricity supply, market functioning and cross-border trade on interconnections with EU Member States and Energy Community Contracting Parties are ensured. Due to the decrease in consumption, the import of electricity from Belarus and Russia was curtailed. A set of preventive measures to ensure continuity of service and protect dispatchers was defined by a special team for critical situations established by Ukrenergo. All planned maintenance works were delayed”.

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