Commercial power trade between Ukraine and continental Europe to start June 30

Commercial electricity trade between Ukraine/Moldova and the EU will start on June 30, the European Network of Transmission System Operators said June 28.

Emergency synchronization of Ukraine's power network to continental Europe began on March 16, since when Ukraine's power generators have been calling for commercial access to the EU's higher-priced markets.

"This is the next step in integrating the energy systems of these two countries with Europe and has a special significance now that they have received EU candidate country status," said European Energy Commissioner Kadri Simson.

Ahead of disconnection from the Russian system on Feb. 24, Ukrainian peak power prices were around Hryvnia 3,000-3,300/MWh (Eur96-106/MWh), or around Eur20/MWh less than in neighboring Poland, and half those of Hungary.

Electricity trading on Ukraine's other interconnections (with Slovakia, Hungary and Moldova-Romania) will follow later, Entso-e said, without offering target dates.

Total trade capacity will initially be set to 100 MW in a first phase, after which a gradual increase "will be regularly assessed based on power system stability and security considerations."

Increasing Ukraine's access to export markets is particularly important in the context of Russia's continuing aggression, Simson said.

"It will allow Ukraine to earn revenues to support its power system in a situation where their domestic income has been reduced by Russia's attacks. At the same time, it will make additional affordable electricity available for the EU during a time when prices are exceptionally high," she said.

Soviet-era VVER nuclear power stations accounted for 50% of Ukraine's generation output of 167 TWh/year in 2021, according to Platts Analytics.

While able to meet up to 40% of its nuclear fuel needs, the majority of Ukraine's fuel assemblies come from Russia, which sources its uranium from home and from Kazakhstan.

Coal (22 GW installed) is the next biggest source of power production in Ukraine, with the country benefiting from its own substantial mining resources.