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Business urges to finally resolve the issue of Ukraine’s energy independence

05/ 04/ 2021
  At the beginning of the year, Ukraine began importing electricity from the Russian Federation and the Republic of Belarus. In March, the President of Ukraine stated the need to restrict electricity imports, which was later supported by Yuriy Vitrenko, Acting Minister of Energy of Ukraine. Meanwhile, the issue of import restrictions and the growth of Ukraines energy production is currently on the agenda and still remains officially unresolved. However, the Verkhovna Rada Committee on Energy & Housing and Communal Services has registered two draft laws on measures to strengthen Ukraines energy independence (№ 5208 On Amendments to Certain Laws of Ukraine on Measures to Strengthen Ukraines Energy Independence and № 5208-1 On Amendments to the Law of Ukraine On the Electricity Market ). According to business, draft Law №5208 does not solve the main problem, namely - the ban on imports of electricity from Russia, as it does not provide for a ban on imports of Russian electricity through the territory of Belarus. Besides, the authors of the draft law do not take into account that the current financial condition of Ukrainian power plants, according to industry experts, is unprofitable, and the continued practice of importing electricity from Russia through Belarus may lead to even greater losses of Ukrainian power plants and, consequently, downsizing the staff at these plants. On June 28, 2017, the Agreement on the conditions for the future integration of power systems of Ukraine and Moldova with the continental Europe grid was signed. The agreement provides for the integration of the Ukrainian power system with the energy system of continental Europe, namely the European Network of Transmission System Operators for Electricity (ENTSO-E) in the mode of operation. Ukraines accession to the ENTSO-E system is one of the strategic measures provided for in the Association Agreement between Ukraine, for one part, and the EU, the European Atomic Energy Community, and their Member States, for another. However, it should be noted that there is another draft law, №5208-1, which will establish conditions for the integration of the Ukrainian energy system with the ENTSO-E system and market conditions for the import of electricity that can greatly strengthen Ukraines energy independence. The advantages of this draft law include the establishment of clear deadlines for Ukraines integration into the ENTSO-E system and limitation of access to interstate transmission capacities for the commercial flow of electric power to Ukraine from Belarus and Russia, preservation of NEURCs responsibility for limiting the available transmission capacity, which is distributed at additional monthly auctions. Also, the document provides for the cancellation of the annual auction results which allocated capacities for interstate electricity transmission from Belarus and Russia for 2020 and 2021. Given the above, the EBA business community expresses its support for draft law № 5208-1 1 as one that will contribute to Ukraines energy independence. We hope that the draft law will be supported by parliamentarians this week.   Be the first to learn about the latest EBA news with our Telegram channel – EBAUkraine.

At the beginning of the year, Ukraine began importing electricity from the Russian Federation and the Republic of Belarus. In March, the President of Ukraine stated the need to restrict electricity imports, which was later supported by Yuriy Vitrenko, Acting Minister of Energy of Ukraine.

Meanwhile, the issue of import restrictions and the growth of Ukraine’s energy production is currently on the agenda and still remains officially unresolved. However, the Verkhovna Rada Committee on Energy & Housing and Communal Services has registered two draft laws on measures to strengthen Ukraine’s energy independence (№ 5208 “On Amendments to Certain Laws of Ukraine on Measures to Strengthen Ukraine’s Energy Independence” and № 5208-1 “On Amendments to the Law of Ukraine” On the Electricity Market “).

According to business, draft Law №5208 does not solve the main problem, namely – the ban on imports of electricity from Russia, as it does not provide for a ban on imports of Russian electricity through the territory of Belarus.

Besides, the authors of the draft law do not take into account that the current financial condition of Ukrainian power plants, according to industry experts, is unprofitable, and the continued practice of importing electricity from Russia through Belarus may lead to even greater losses of Ukrainian power plants and, consequently, downsizing the staff at these plants.

On June 28, 2017, the Agreement on the conditions for the future integration of power systems of Ukraine and Moldova with the continental Europe grid was signed. The agreement provides for the integration of the Ukrainian power system with the energy system of continental Europe, namely the European Network of Transmission System Operators for Electricity (ENTSO-E) in the mode of operation.

Ukraine’s accession to the ENTSO-E system is one of the strategic measures provided for in the Association Agreement between Ukraine, for one part, and the EU, the European Atomic Energy Community, and their Member States, for another.

However, it should be noted that there is another draft law, №5208-1, which will establish conditions for the integration of the Ukrainian energy system with the ENTSO-E system and market conditions for the import of electricity that can greatly strengthen Ukraine’s energy independence. The advantages of this draft law include the establishment of clear deadlines for Ukraine’s integration into the ENTSO-E system and limitation of access to interstate transmission capacities for the commercial flow of electric power to Ukraine from Belarus and Russia, preservation of NEURC’s responsibility for limiting the available transmission capacity, which is distributed at additional monthly auctions. Also, the document provides for the cancellation of the annual auction results which allocated capacities for interstate electricity transmission from Belarus and Russia for 2020 and 2021.

Given the above, the EBA business community expresses its support for draft law № 5208-1 1 as one that will contribute to Ukraine’s energy independence. We hope that the draft law will be supported by parliamentarians this week.

 

Be the first to learn about the latest EBA news with our Telegram channel EBAUkraine.

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