On April 7, the Verkhovna Rada of Ukraine adopted a law on the implementation of EU legislation and the integration of energy markets, aimed at enhancing security of supply and competitiveness in the energy sector (No. 12087-d).
The Law is aimed at establishing a comprehensive legal framework for the full integration of the Ukrainian electricity market into the EU internal energy market.
In particular, it provides for:
- establishing a legal framework for coupling the day-ahead and intraday markets with European bidding zones (to enable coordinated electricity trading in terms of prices and volumes for both day-ahead and intraday markets);
- implementation of the European risk preparedness model in the electricity sector and the introduction of capacity mechanisms;
- regulating the interaction between the transmission system operator and the market operator to facilitate cross-border electricity exchange;
- the development of new flexible market instruments, in particular demand aggregation and management activities (new ways of flexibly managing supply and demand will emerge, including the aggregation of small energy sources and the control of when and how much electricity consumers use);
- strengthening the role of consumers through the development of energy communities and active consumers;
A special attention was paid to security supply:
- introducing risk preparedness plan;
- strengthening coordination with regional centres;
- compliance with ENTSO-E requirements is ensured (the Ukrainian energy system will operate in accordance with ENTSO-E standards and rules to ensure security and compatibility with EU member states).
“In the context of the war and ongoing attacks on energy infrastructure, this Act significantly strengthens the country’s energy security. We are introducing common approaches to risk management and deepening coordination with our European partners. This means that Ukraine will respond to challenges not in isolation, but as part of Europe’s single energy area,” said Andrii Zhupanyn, Deputy Chair of the Committee on Energy, Housing and Utilities.
The adoption of the Law represents a significant step towards aligning national energy legislation with European Union law; it will help to enhance the country’s energy security, foster a competitive environment in the electricity market, and expand Ukraine’s participation in European energy markets.
“At the same time, it is important to understand that consumers will not feel immediate changes right after the Law is adopted. The document sets a strategic direction for market development and requires further adoption of secondary legislation. Practical outcomes — increased competition, stable rules of the game, and access to the European market — will be implemented gradually,” said Andrii Zhupanyn.
He also noted that the Law opens up new opportunities for the development of distributed generation, cogeneration, and energy communities. According to him, a European approach is being introduced, allowing consumers to simultaneously act as producers and sellers of electricity. The Law предусматриває simplified conditions for small market participants and the implementation of innovative projects based on the principle: “smaller players — less regulatory burden.”
It should be recalled that on April 2, the Committee on Energy and Housing and Utilities Services recommended that Parliament adopt the draft law, prepared for the second reading, as a whole with the necessary technical and legal amendments.
It should be noted that 1,358 amendments were tabled to the draft law, of which 47 were accepted (including editorial and partial amendments), whilst 1,311 were rejected. Following the consideration, the Committee, in accordance with paragraph 4 of part one of Article 15 of the Law of Ukraine ‘On the Committees of the Verkhovna Rada of Ukraine’, also included Committee amendments No. 1357 and No. 1358 in the comparative table, having taken them into account editorially.
Thus, the Verkhovna Rada has legally enshrined the European direction of Ukraine’s energy sector development for the long term.