On August 22, 2024, the USAID Energy Security Project held a roundtable on the draft law for the transposition of the Electricity Integration Package. ESP provided expert support to the Ministry of Energy of Ukraine in preparing the draft law and outlining further steps for the Package’s implementation.
Points of attention
- The USAID Energy Security Project is providing expert support to Ukraine in implementing the Electricity Integration Package, aiming to fully integrate Ukraine into the European electricity market and transition to clean energy.
- The Integration Package will improve cross-border electricity trade, increase national grid efficiency, and enhance Ukraine's energy security, aligning the country with EU best practices.
- The adoption of the Electricity Integration Package will strengthen Ukraine's energy sector stability, transparency, and resilience, supporting the country's EU membership aspirations.
- Collaboration between USAID ESP, Ukrainian government, and regulators is crucial for successfully implementing primary and secondary legislation to improve the efficiency and reliability of Ukraine's electricity market.
- The development and adoption of the draft law for the Electricity Integration Package reflect the best practices of EU countries like Czech Republic, Poland, and Slovakia, ensuring alignment with European integration commitments.
The discussion involved representatives from the Cabinet of Ministers, the Verkhovna Rada, the National Energy and Utilities Regulatory Commission (NEURC), representatives of the Energy Community, market participants, and other stakeholders.
The Electricity Integration Package aims to fully integrate Ukraine into the European electricity market. It includes the directives and regulations that focus on the transition to clean energy, security, and the affordability of energy supply.
According to Kathleen Kirsch, Deputy Director of the USAID/Ukraine Critical Infrastructure Office, this work is a key component of USAID ESP’s targeted assistance aimed at helping Ukraine achieve its strategic goals of aligning its technical, legal, and market structures with EU’s best practices.
Adoption of this Electricity Integration Package will help enhance cross-border electricity trade, improve the efficiency of a national grid, and support the stability and transparency of Ukraine’s energy sector. The draft law establishes a fundamental framework to facilitate the seamless operation of. Ukraine’s electricity market within the European system, foster greater competition, and greatly strengthen Ukraine’s energy security.
Deputy Minister of Energy Roman Andarak noted that the implementation of the Package is a matter of national energy security and strengthens the resilience of the energy system. Additionally, he mentioned that the adoption of the bill would allow Ukraine to fulfill one of the European Commission’s recommendations as a candidate country for EU membership.
In other words, Ukraine’s future EU membership and the successful implementation of the Integration Package are closely linked, said Andarak. The content of the draft law is based on the experience gained and reflects the best practices of the Czech Republic, Poland, and Slovakia, which have implemented the relevant EU legislation.
Chairman of the Verkhovna Rada Committee on Energy, Housing and Communal Services Andriy Gerus, noted that the Verkhovna Rada is systematically passing the necessary EU integration legislation in the energy sector.
We will undoubtedly take a proactive stance and make every effort to ensure that this draft law is adopted as quickly as possible.
The Chairman of the National Energy and Utilities Regulatory Commission (NEURC), Yurii Vlasenko, outlined the importance of the draft law in the context of fulfilling European integration commitments and further coupling the markets of Ukraine and the EU. The NEURC Chairman also emphasized that after the adoption of the draft law, it is necessary to continue working together on the development of the secondary legislation.
The further activities of USAID ESP will include the development of critically important primary and secondary legislation and support to capacity building for its implementation. As noted by Mike Trainor, USAID ESP’s Chief of Party, this will significantly enhance the efficiency and reliability of Ukraine’s electricity market.
Reforms such as those contained in the Electricity Implementation Package deliver massive benefits to Ukrainian consumers and the Ukrainian economy, which should be a sufficient impetus on its own for their adoption and implementation. They’re all the more important in the context of Ukraine’s EU accession ambitions.
