Key Developments in the Ukrainian Energy Sector

New Electricity Quality Standards to Take Effect in Ukraine

As part of harmonisation with European electricity regulation approaches, updated electricity quality requirements will enter into force in Ukraine on 1 July 2025, as approved by the NEURC in the new version of the Distribution System Code.

These amendments introduce a nominal voltage of 230/400 V with an allowable deviation range of ±10% (within 207–253 V), in line with the updated national standard DSTU EN 50160:2023, harmonised with the current European standard.

The changes aim to improve electricity supply quality, reduce household appliance failures, and increase energy efficiency across the country.

First Banks Accredited to Provide Guarantees for Energy Auctions

The Ukrainian Energy Exchange (UEEX) has accredited the first banks to issue bank guarantees to participants in electricity auctions.

Among the accredited institutions are JSC “Ukreximbank”, JSC “TASKOMBANK”, JSC “PUMB”, and JSC “Oschadbank”. Later, JSC “Bank Pivdenny” and JSC “Sense Bank” also joined the list.

The use of bank guarantees is a widely recognised mechanism for ensuring contract obligations, reducing the risk of counterparties refusing to perform agreements, as the financial responsibility is borne by the guarantor bank.

This approach will enhance the reliability of settlements in the electricity market and foster the development of exchange-based instruments.

European Commission Publishes Roadmap to End Russian Energy Imports

As part of the REPowerEU initiative, on 6 May 2025, the European Commission presented a roadmap for the complete phase-out of Russian natural gas imports by 2027, along with a gradual reduction of Russian oil and nuclear fuel supplies.

According to the announced intentions, the European Commission will present corresponding legislative proposals in June 2025 based on this roadmap.

Additionally, EU member states are to develop and submit national plans for the phased reduction of imports of energy resources from the Russian Federation by the end of 2025.

NEURC Adopts Insider Information Aggregation Procedure

On 6 May 2025, the NEURC approved the Procedure for Aggregation of Insider Information on the Wholesale Energy Market and its Disclosure (Resolution No. 682).

The document establishes the procedure for collecting, processing, and publishing insider information that is subject to restricted access under the laws “On the Electricity Market” and “On the Natural Gas Market”.

The aggregation is conducted every ten-day period based on urgent market messages published by market participants on insider information platforms. Aggregated results are published on the official NEURC website within three working days after the end of each reporting period.

The adoption of this Procedure aims to enhance market transparency, prevent manipulation, and ensure integrity and fairness in energy market communications.

Draft Law №13171 to Strengthen Electricity Supply Security

On 4 April 2025, Draft Law №13171 “On Amendments to the Law of Ukraine ‘On the Electricity Market’ regarding the Regulation of Electricity Supply Security Issues” was registered in the Verkhovna Rada.
The draft law is aimed at strengthening state control in the energy sector to ensure stable and secure electricity supply to consumers.

It provides for the expansion of powers of state authorities in monitoring compliance with safety requirements, particularly at energy infrastructure facilities of strategic defence importance.

Market participants would be obliged to manage demand, develop generating capacities, adhere to maintenance schedules, and ensure the formation of fuel reserves.

The draft law also introduces administrative liability for violations of supply security rules, failure to provide information, or obstructing state supervision.

Furthermore, it envisages the implementation of continuous monitoring tools for the technical condition of energy equipment and investigation of technological incidents for prompt response.
The adoption of this law is expected to enhance the reliability of the energy system and protect consumer rights.

NEURC Pushes Legislative Reform for Guarantees of Origin

The NEURC is creating conditions to expand demand for Ukrainian guarantees of origin for electricity.
On 22 April 2025, the NEURC approved a draft law amending Article 97 of the Law of Ukraine “On Alternative Energy Sources”, aimed at improving regulation in the area of guarantees of origin for electricity produced from renewable sources.

The draft law seeks to develop a legislative mechanism ensuring recognition of Ukrainian guarantees of origin both at the Energy Community level and, prospectively, in European Union countries, fostering increased demand for Ukrainian “green” electricity.

Key provisions include the introduction of mutual recognition principles for guarantees of origin by the EU and Energy Community, restrictions on recognising guarantees from other countries if not recognised at the European level, and empowering the NEURC to approve and update Ukraine’s domain protocol in line with the Association of Issuing Bodies (AIB) standards.

It also clarifies requirements for disclosing information about electricity origin, including through the use of the annual residual energy mix.

Draft Law №13219 to Improve Competitive Framework for RES

On 28 April 2025, Draft Law №13219 “On Amendments to Certain Laws of Ukraine to Improve Competitive Conditions for Electricity Generation from Alternative Energy Sources” was submitted to the Verkhovna Rada.

The draft aims to stimulate the development of renewable energy generation by improving market participant conditions and removing competition barriers.

The document introduces several changes, including a support mechanism in the form of a “clean” premium instead of contracts for difference (until 31 December 2029), extends auctions until 2034, and specifies provisions regarding the maximum annual quota per participant when announcing additional quotas during the year.

It reduces financial burdens by lowering bank guarantee amounts and allowing direct financial security provision to the Guaranteed Buyer.

The draft also clarifies quota allocation rules among renewable energy types (solar, wind, others) and introduces permissible deviations of actual capacity within 10% of the declared auction capacity.
Moreover, it proposes improvements in the issuance and circulation of guarantees of origin for “green” electricity in line with European requirements and introduces the possibility of integrating energy storage systems within the cable pooling mechanism.

EU Supports Creation of Renewable Energy Price Guarantee Fund

The European Commission expressed its support for establishing a special fund in Ukraine aimed at stimulating the development of renewable energy.

The primary objective of the fund is to provide price guarantees for electricity generated from renewable sources, thereby mitigating market risks and creating a favourable investment environment for attracting private capital.

The fund is scheduled to launch this year, with the issuance of the first insurance instruments expected next year.

Several European governments are anticipated to participate financially.
The fund will support projects in wind and solar energy, as well as infrastructure development for energy storage.