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  • ELECTRIC visa waiver: BENEFITS AND CHALLENGES OF UKRAINE’S INTEGRATION INTO ENTSO-E

    On May 28, 2019, Ukrenero and NEURC, supported by USAID, initiated an expanded meeting on the topic of integration of Ukraine’s power system into ENTSO-E, unlocking electricity import, competition of producers and consumer benefits. 

    The event was attended by NEURC Commissioner Dmytro Kovalenko, ENTSO-E Managing Director, Strategy and Communications Susanne Nies, Head of ENTSO-E PG Ukraine/Moldova Daniela Bolborici, USAID Deputy Mission Director of Regional Mission for Ukraine, Belarus and Moldova John Pennell, Deputy Minister of Energy and Coal Industry of Ukraine on European Integration Nataliya Boyko, Vsevolod Kovalchuk, Ukrenergo CEO, and heads of generating companies, among others.

    The meeting is highly topical because the integration of Ukraine’s power system into the European energy space is a key objective of our state over the next five years. Already some progress has been made: legislation has been amended to allow for the unbundling of management of generation and transmission, the foundation for Ukrenergo’s certification under ENTSO-E standards has been laid, the electricity market reform has been in progress for two years.

    A key objective of the Ukrainian power system in the course of synchronization with the European one is provision of sufficient capacity reserves for effective balancing, including when operating in an isolated mode. This envisages modernization and development of generating companies, infrastructure of the TSO, as well as other electricity market players. In late April 2019, Ukrenergo, supported by USAID, has successfully completed testing of power plant units for their capability to participate in automated regulation, as required by  ENTSO-E.

    Another element of the future interconnection with ENTSO-E is ensuring that the power system of Ukraine is managed in accordance with the ENTSO-E standards, and that the Ukrainian energy law is harmonized with the European, as well as compliance with market standards and certification of Ukrenergo as the national TSO.

    We should note that the success of this energy “visa waiver” would not be possible without the support of our international partners – the EBRD, KfW, The World Bank, USAID, etc. Over the last two years Ukraine has managed to build a strong international coalition supporting the integration of the IPS of Ukraine into ENTSO-E, making it possible to implement joint projects on strengthening the Company’s physical and cyber security, and construction of energy storage assets: for example, cooperation with Germany in RES integration into the Ukrainian power system, and with France – in implementation of innovative methods for repair works and development of energy storage to balance the power system. In early April Ukrenergo and the Belgian Elia Grid International signed a consulting contract under the Second power transmission project (PTP-2) funded by the World Bank. Moreover, ENTSO-e and Ukrenergo have agreed on the latter’s participation in ENTSO-E Cooperation Beyond Membership Programme for 2019-2021, which will allow to set up a mechanism for transferring expertise and best practices on the Company’s most pressing issues related to ENTSO-E integration. The first introductory workshop featuring ENTSO-E Secretary General Laurent Schmitt on key strategies, processes and platforms of ENTSO-E will take place on 29 May at Ukrenergo.

    “Today, as never before, Ukraine has a historic opportunity to make within a short period a strategic step to enhance its own energy security and a full-scale integration into the European energy market. Ukrenergo plays a leading role in this process. At the same time, successful integration into ENTSO-E is possible only with the joint effort of all energy market players – state institutions, regulators and electricity producers. Integration will help us solve important issues in three directions at once: technical, political and security. After all, at the same time, we will be able to modernize the grid and reduce our energy dependence on Russia, — Ukrenergo CEO Vsevolod Kovalchuk noted.

    Vsevolod Kovalchuks presentation can be found in open access here. 

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