Ukraine Launches Long-Term Electricity Auctions with EU Countries

Україна запустить довгострокові аукціони торгівлі електроенергією з трьома країнами ЄС.

The National Commission for State Regulation in the Spheres of Energy and Public Utilities (NERC) has approved new rules for the long-term allocation of capacity at the border of Ukraine with three European Union countries.

This is reported by Business • Media

Access to the EU Electricity Market

From now on, Ukraine is implementing a joint monthly capacity allocation mechanism that will operate through the specialized European electronic platform Joint Allocation Office (JAO). According to NERC, the introduction of such a mechanism creates new, more favorable conditions for electricity trading with Slovakia, Hungary, and Romania.

Features of the JAO Platform

The Joint Allocation Office is a European system for organizing auctions for the allocation of capacity for cross-border electricity transmission lines. Ukraine participated for the first time in a joint daily auction on this platform on January 16, 2024, together with the Polish operator PSE. That same year, auctions also started for the routes Ukraine – Slovakia and Ukraine – Hungary. As noted by NERC, trading with Romania on the JAO platform has not yet commenced.

The implementation of a coordinated monthly mechanism through the JAO platform opens access to electricity trading with Slovakia, Hungary, and Romania under new, more favorable conditions for Ukraine, explained NERC.