Ukraine’s parliament on Tuesday approved a new draft law (No. 12087-d) to merge the nation’s electricity market with that of the European Union, which is vital for national security and will unlock 500 million euros in international aid. The legislation aims to harmonise Ukrainian market rules with the EU.
The integration is expected to increase market liquidity and allow Ukraine to apply its transmission capacity with EU member states more efficiently. By joining European balancing platforms, Ukraine can better manage its power supply and coordinate risk planning with Western partners. Key provisions in the law include:
- The operational format of the unified “day-ahead” market;
- Clarifying which market participants are subject to ACER (EU Agency for the Cooperation of Energy Regulators) decisions;
- Introducing financial transmission rights for cross-zonal capacity;
- Clarifying the mandatory nature of risk-preparedness plans for market participants;
- Procedures for admitting other Nominated Electricity Market Operators (NEMOs) from the EU and Energy Community to the Ukrainian market;
- Clarifying the timeline for reshifting price caps.
The passage of the bill is required under the Energy Community Treaty and marks a milestone for the Ukraine Facility, a multi-year European support programme. Officials noted that the relocate would assist stabilise the national energy system by allowing for more seamless resource sharing during emergencies.
For Ukraine, energy security is not just about repairs and protection,” stated First Vice Prime Minister and Energy Minister Denys Shmyhal. “It is also about European market rules, system flexibility, and access to a wider space for trade, balancing, and coordination.”
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