04.07 Energy Club Reception

Topic: Beyond Synchronization: The Possibilities and Challenges for Commercial Electricity Exports from Ukraine to its EU Neighbors

Following the emergency synchronization of Ukraine and Moldova with the Continental European power grid, to maintain the stability of system, commercial power flows between Ukraine and its neighbouring countries have been restricted. However, potential revenues for Ukraine from electricity exports to the European Union are estimated to run up to 1.5 billion euros by the end of the year. Not only would such income provide much needed capital to a cash strapped Ukraine, but it would also alleviate the pressure of high energy prices in the importing countries. Ukrainian electricity prices trade significantly below neighbouring EU markets, due to an electricity oversupply in Ukraine following a drop in consumption because of the Russian invasion (e.g., spot prices for some days are over €130/MWh higher on the Hungarian day-ahead market).

Therefore, late April, the Ukrainian electricity TSO, Ukrenergo, sent a request to ENTSO-E to allow electricity trade between Ukraine and its neighbours. This request was judged positively the 7th of June, in which the TSOs of Continental Europe confirmed a set of conditions to be fulfilled to gradually open commercial electricity exports on the interconnection points between Ukraine and its neighbours. The implementation of these technical conditions in full is essential for securing the security and stability of synchronized power systems.

At the same time, Ukrenergo was accepted as an ENTSO-E Observer Member, further cementing the commitment of the TSOs to a gradual resuming of commercial exchanges of electricity. While this certainly shows an important message of solidarity, time is precious and a clear roadmap for implementation or concrete dates seem to be still missing. During the event, the current state of play in the process will be discussed to identify which steps are needed and how the implementation time could be potentially reduced. Furthermore, experts will discuss what regulatory and technical hurdles should be met before Ukraine can actively participate in the EU Internal Electricity Markets.

In the discussion, experts will try to answer the following questions:

  1. What are the technical requirements by ENTSO-E to be implemented before electricity exports from Ukraine to its EU neighbors are possible? What is the implementation timeline and how can it be shortened?
  2. What would be the ideal model for such electricity exports? What would be the role of the Ukrainian Energy Exchange?
  3. What possibilities do traders see for electricity exports from Ukraine? What potential stumbling blocks do they see for such trade to be made possible?

Date: July 4, 2022
Start time: 16:00
Organizer: Energy Club
Format: online (broadcast on Facebook, YouTube and LinkedIn)

Moderator - Mykhailo Bno-Airiian, Deputy CEO for communications and international cooperation at NPC Ukrenergo (2016-2019)

(The list is being compiled)

  • Andriy Nemirovsky, Deputy Chairman of the Management Board of NPC Ukrenergo
  • Albino Marques, Coordinator for the Continental Europe Region, ENTSO-E
  • Nicolas Kuen, Team Leader at DG ENER, European Commission
  • Arben Kllokoqi, ECRB Electricity Expert, Energy Community Secretariat
  • Kateryna Danylkova, acting director at Separated Subdivision «Energoatom-Trading» of the NNEGC «Energoatom»
  • Jan Haizmann, Member of the Board, European Federation of Energy Traders (EFET)
  • Mark Lane, Principal Economist, European Bank of Reconstruction and Development (EBRD)
  • Fatih Kolmek, Senior Electricity Manager, USAID Energy Security Project
  • Branimir Beljan, Regional Relationship Manager, Power Markets, Danske Commodities
  • Olena Antonova, Energy market expert, former NEURC Commissioner
  • Lisse Geert van Vliet, Business Developer at the Ukrainian Energy Exchange, UEEX
  • Volodymyr Shvedky, CEO of energy provider ETG.UA
  • Oleksandr Havva, Acting Director General of JSC Market Operator

  • Ukrainian Electricity Producer