Ukraine’s electricity market: a year after the reform
On July 1, 2019, Ukraine opened its electricity market, shifting from a regulated single-buyer model to a competitive liberalised model in line with the EU’s 3rd energy package directives. The reform was implemented in a tight timeframe of only two and a half years – very quickly by European standards. Due to the haste, Ukraine launched its market in a half-baked state, without a comprehensive testing period and without having addressed important pre-requisites for a successful open market. After a year in operation, the market infrastructure is running with no major disruptions. However, regulatory gaps and a lack of competition have resulted in relatively high spot prices. Many structural problems remain unaddressed, impeding the further success of the reform.