To advance integration with European energy markets, USAID ESP is supporting Ukraine in developing gas policies and regulations in line with standard European rules. As part of this, ESP is helping to facilitate the transition from measuring natural gas in cubic meters to measuring it in energy units—kilowatt-hours (kWh)—for gas sector operations.
Why is it important for Ukraine?
Adoption (harmonization) of EU gas standards will support the development of the Ukrainian gas market by:
Providing the same technical preconditions as in the EU.
Allowing further integration with the EU gas market without inconveniencing traders when storing their gas in Ukraine (recall that the Ukrainian operator of underground gas storage facilities (UGS) measures gas in cubic meters, while European traders use kWh).
Meeting Ukraine’s commitments under the Association Agreement with the EU.
Increasing the attractiveness of Ukraine’s gas sector to international investors.
Facilitating cooperation between Ukraine’s Gas Transmission Operator, Distribution System Operators and Storage System operator with their European partners, improving energy security, and easing access to modern equipment and technologies.
USAID ESP works to improve the environment for implementing reforms in Ukraine’s energy sector, facilitating the fulfillment of international commitments, and strengthening the country’s energy security.
The outcome of this help will ensure that Ukraine meets its international obligations under the Association Agreement between the European Union and Ukraine. According to European legislation, gas metering must be done in kilowatt-hours, not cubic meters.
Introducing energy units will simplify compiling the energy balance when enterprises use different energy sources. It will also allow them to choose the most cost-effective fuel type, stimulate consumers to save energy, and make the effectiveness of gas use transparent and understandable compared to other energy sources.
