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Ukraine’s President signs law on certification of the TSO in accordance with EU requirements

Ukraine’s President Volodymyr Zelensky signed the Law “On amending certain legislative acts of Ukraine regarding certification of the Transmission System Operator”, which will contribute to the implementation of Ukraine’s international obligations on the implementation of the European Union’s Third Energy Package.

In particular, the law will provide for the possibility of certification of the Transmission System Operator (TSO) Ukrenergo according to the Independent System Operator (ISO) model. Such certification is a mandatory prerequisite for the integration of the integrated power system of Ukraine into the power grid of Continental Europe ENTSO-E.

Joint auctions for the allocation of cross-border transmission capacity between Ukraine and neighbouring TSOs of the ENTSO-E area will significantly simplify the export/import of electricity to/from Europe. In particular, it will ensure unimpeded access of all market participants to the cross-border transmission capacity, minimise the number of procedures required to ensure electricity cross-border trade, and significantly speed up the passage. These measures will create conditions for maximum competition between electricity producers and importers and the formation of a fair electricity market price. In addition, the introduction of joint auctions will solve the problem of charging for transmission services for the export of electricity, which is extremely important to ensure the financial stability of the transmission system operator.

According to the Law, the transmission system operator is defined as a legal entity responsible for the safe, reliable and efficient operation and development of the distribution system, which has received a license to operate in the transmission of electricity. The Law also includes amendments to the Electricity Market Law, thus the following entity can be certified as TSO: the owner of the transmission system or a State enterprise which received the right of economic management of the state ownership objects used to carry out activities for the electricity transmission.

Additionally, the introduction of the term energy storage and its definition in the Electricity Market Law is an important step for the development of a regulatory framework on this issue as, so far, there was no regulation of energy storage systems in Ukrainian legislation.

Photo: President’s official Facebook page.

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