INTEGRATION WITH ENTSO-E MAY DOWNLOAD PRICES FOR ELECTRICITY IN UKRAINE BY 20-30% – V.KOVALCHUK
The effect of interconnection of Ukrainian and European electric power systems will be felt by every Ukrainian. “Joining the ENTSO-E and the future of the markets merger may lower the price of electricity in Ukraine“, said Vsevolod Kovalchuk speaking at the round table “Become disconnected from Russia: prospects for Ukraine joining the European network transmission system ENTSO-E” that was held in the Ukrainian Crisis media center on July 18. According to European statistics, the interconnection of energy systems and markets unification lead to a fall in prices in the domestic market of the acceding country on average 20-30% of the value at the time of accession.
According to Ukrenergo manager, Ukraine has 5 years on fulfillment of the Catalog requirements, the unconditional execution of which is necessary for a decision on the integration of power systems; and this means that at the moment of possible synchronization, the electric power sector will operate for several years under conditions of a new model of the electricity market, the full-fledged introduction of which is scheduled since 2019. During this transitional period, the efforts of the Regulator and AMCU (the Antimonopoly Committee of Ukraine) should be aimed at preventing the growth of prices in the domestic market. And only the physical and technical opening of the market for foreign manufacturers and suppliers will create real competition on it and guarantee a fair price for each consumer. “The sooner we will join the European association, the sooner we will get real market conditions“, said Vsevolod Kovalchuk.
The words of the CEO of Ukrenergo were confirmed during the meeting by the independent expert Andrii Perevertaiev, who added that the market coupling and removal of restrictions in the interstate trade reduces fluctuations of the electricity price and its dependence on the conditions of the power system operation for a certain period of time, which, in turn, makes it possible to optimize national generating capacities. “When our power system and the market will be combined with European, we will get a fair price for electricity and a completely open competitive market“, Mr. Perevertaiev expressed his hope.
Therefore, synchronization with the ENTSO-E is impossible without the full implementation of the new model of the electricity market in accordance with the requirements of the Third Energy Package.
“As a result, in a few years we will have transparent working conditions in the industry, which is the basis of the economy“, Vsevolod Kovalchuk emphasized.
ENTSO-E (European Network of Transmission System Operators for Electricity) – European Network of System Operators for Electricity Transmission – an organization that is currently incorporating 41 system operators from 34 countries. In the current format it exists since 2009, as the associations ATSOI, BALTSO, ETSO, NORDEL, UCTE and UKTSOA.
The integration of the Ukrainian power system to the Continental Energy System ENTSO-E is currently defined as one of the priorities of the development direction and is part of the policy of Ukraine’s energy independence (Program of activity of the Cabinet of Ministers of Ukraine, approved by the Verkhovna Rada of Ukraine Decree No. 26-VIII of December 11, 2014).
On June 28, 2017 in Brussels Vsevolod Kovalchuk, CEO of the state-owned enterprise “NPC “Ukrenergo”, signed an “Agreement on the conditions for the future integration of power systems of Ukraine and Moldova with the of continental Europe grid”. The document consists of three main parts: A catalog of requirements, the unconditional execution of which is necessary for a decision on the integration of power systems; List of necessary additional researches; Road map.
On July 07, upon the signing of the document by a sufficient number of system operators belonging to the ENTSO-E Regional Group “Continental Europe”, the Agreement entered into force.