Launch of Electricity Market May Give Additional 1% of Annual Growth of Ukraine’s GDP

November 30, 2018

Launching of the new electricity market model in 2019 may contribute to additional annual growth of the country's GDP by at least 1%. This will be achieved through improvement of the investment climate to attract funds in the infrastructure modernization and increased electricity trading. Attractive conditions for investment will be formed by introducing transparent and competitive mechanisms of the electricity market, simplifying the procedures of connecting new enterprises to the network, and expanding transboundary trading. 

Reforming the electricity market will contribute to synchronous operation of Ukraine and Moldova’s power grids with the ENTSO-Е. Provided effective cooperation of all stakeholders, this goal can be achieved by 2023. The utmost power transmission capacity under the complete synchronisation in the export-import operation mode is projected to reach 4 GW. The integration has a potential to increase the trading volume by 6 times – from $250 million to $1.5 billion. 

The new market rules will enable a consumer to select its own energy suppliers. The EU countries will get additional opportunity to buy significant volumes of electricity from Ukraine, thus increasing supply for the benefit of consumers. On the other hand, the EU energy generating companies will receive access to the Ukrainian market. 

Volodymyr Omelchenko

Director, Energy Programmes


Born in 1967 in Kyiv.

Education: Kyiv Politechnic Institute, Department of Chemical Engineering (1992).

Author of over 50 scientific works and op-ed publications. Took part in development and implementation of international energy projects and scientific research in international energy policy.

Employment:

1992–1996, worked in different positions in the mechanical engineering industry;

1997–1998 — head expert of the division of oil, gas and petroleum refining industry of the Ministry of Economy of Ukraine;

1998–2003 — Naftohaz Ukrayiny National Joint-Stock Company, in charge of oil transportation section;

2004–2007 — chief consultant at the National Institute of International Security Problems of Ukraine’s NSDC;

since February, 2007 — Leading Expert, Razumkov Centre. Director since 2013.

(044) 206-85-02

omelchenko@razumkov.org.ua

volodymyr.omelchenko