Today, on 17 December, the National Energy and Utilities Regulatory Commission certified NPC Ukrenergo as the European-style transmission system operator in accordance with the ISO model. The Energy Community Secretariat confirmed the compliance of this decision with the EU’s Third Energy Package.
Certification of the transmission system operator (TSO) is specified by the Law of Ukraine “On Electricity Market” and EU Directive 2009/72/EC3, mandatory for implementation into the Ukrainian legislation.
What did the certification process include?
Obtaining a certificate of compliance with the rules of the EU’s Third Energy Package is a process that all European operators in Continental Europe went through with no exception. It is certification that becomes an unconditional sign for our European partners and stakeholders that NPC Ukrenergo is completely free of any political pressure or business influence.
To reach this conclusion, the Regulator and the Energy Community Secretariat carefully checked NPC Ukrenergo’s documents for their compliance with European rules and regulations. In particular, they analysed the documents regulating the Company’s rights to use assets, interaction with shareholders and market participants, as well as defining the activities of NPC Ukrenergo as a business entity and its financial condition.
Therefore, the certification proves that the unbundling of NPC Ukrenergo in accordance with the ISO model, specified by both European and Ukrainian legislation, has taken place. In fact, the issued certificate confirms that the decisions on the activities of the transmission system operator do not depend on the functions of generation and supply of electricity. The governing body, the Ministry of Energy, has no assets in these segments of the industry, while the Company’s corporate governance is fully in line with international standards.
Why does Ukraine need a certified transmission system operator?
The certification paves the way for NPC Ukrenergo’s official membership at ENTSO-E, which unites 42 transmission system operators from 35 European countries. This certificate constitutes the main prerequisite for obtaining the membership. Interconnection of the IPS of Ukraine and ENTSO-E in 2023 is a strategic goal aimed at allowing our country to gain energy independence, ensure further development of renewable energy sources, decarbonise our economy and increase security of electricity supply.
“In the near future, NPC Ukrenergo will apply for observer membership at ENTSO-E. In particular, this status will allow the Company to participate in the meetings of ENTSO-E Regional Group Continental Europe. Our representatives will also be able to join ENTSO-E working and expert groups dealing with electricity market development, balancing, ancillary services, electronic data exchange, RES integration, etc. This means that before the transition to parallel operation with the European grid, NPC Ukrenergo will have the opportunity to become involved in the development of ENTSO-E internal policies,” said Volodymyr Kudrytskyi, Chairman of the Management Board at NPC Ukrenergo.
Moreover, NPC Ukrenergo’s specialists will be able to access information platforms and IT tools used by ENTSO-E transmission system operators. They include the platforms for real-time data exchange – the systems that allow TSOs to quickly respond to changes in network conditions, effectively conduct operational planning and more.
All these opportunities will greatly facilitate and accelerate the process of integration of the Ukrainian power system into the European grid in 2023.
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