Now Ukraine is a member of the “European energy Union”: on March 16, our energy system officially joined the EU energy system. Experts from the Energy Sector of the BRDO congratulate Ukrainians on the implementation of a crucial project for the future of the state and explain the benefits of this event for domestic consumers and producers. The World Bank estimates that the economic benefits of synchronization will be about $ 1.5 billion annually.
Synchronization with the continental European energy network ENTSO-E has been planned for the last 5 years as an integral part of the EU-Ukraine Association Agreement. This winter, as part of the integration process, the domestic energy system had to work for at least three days in isolated status. There was a risk of failure of these tests due to low coal stocks at Ukrainian power stations. No one expected the war to break out on February 24, at the same time as the isolated operation of the United Energy System (UES) of Ukraine.
In spite of all the risks and complications, the Ukrainian energy system has withstood the test. They did not affect the reliability and sustainability of its work.
Already on February 27, the operators of energy systems of continental Europe received a request from Ukrenergo for emergency synchronization, which was supported by the EU energy ministers. On March 11, the EU energy system operators concluded that the conditions for emergency synchronization had been met by Ukraine, and completed the emergency synchronization on 16 March.
Our power engineers have been working since 2017 to ensure the technical readiness of Ukrainian power system for synchronization. Since the beginning of Russia’s war against Ukraine, i.e. for 20 days in a row, Ukrainian energy system has stably operated in isolation. Despite the military aggression and critical operating conditions, the frequency in the network did not exceed the normative values.
What joining the “energy EU” would mean for Ukrainians?
Synchronization of Ukraine’s UES with ENTSO-E provides new perspectives in terms of balancing the power system, increasing the capacity of solar and wind power plants, operational security and unification of electricity markets, and reduces Ukraine’s dependence on the occupying country.
Ukrainian consumers will notice the benefits of ENTSO-E synchronization in their electricity bills when the first cheaper kilowatt-hours flow from Europe to Ukraine.
Ukrainian manufacturers will benefit when the first kilowatt-hours are sold to European consumers.
In general, Ukraine will now be able to trade electricity freely with Europe, which will help to avoid shortages and significant price fluctuations.
As a rule, Ukraine sells more electricity than buys. The World Bank estimates that the annual economic benefits of synchronizing Ukraine’s energy system with ENTSO-E will be approximately $ 1.5 billion.
Ukraine’s accession to ENTSO-E will ensure that energy market participants comply with fair rules of conduct. Therefore, for foreign companies, this will be a significant signal to invest in the development of Ukraine’s energy sector and industry after winning the war.