NEURC Resolution, supported by USAID ESP, will facilitate electricity exchange with Poland, Slovakia, and Hungary

September 13, 2023

On September 12, 2023, the National Energy and Utility Regulatory Commission (NEURC) adopted the resolution “On Approval of the Cross-Border Capacity Allocation Rules for Ukraine – Poland, Ukraine – Slovakia and Ukraine – Hungary directions.”

The new resolution will improve the capacity to conduct electricity export-import transactions through Ukraine’s borders with Poland,  Slovakia, and Hungary. It will positively affect the security of the electricity supply and the stability of the operation of the Integrated Power System of Ukraine during the upcoming heating season.

Earlier this year, the USAID Energy Security Project (ESP) prepared an “Analysis of Legislation on Joint Cross-border Capacity Allocation” and provided it to NEURC and Ukrenergo. Its purpose is to identify the gaps regarding compliance with the relevant legal and regulatory framework of the European Union and the Ukrainian legislation and to give recommendations to refine the cross-border capacity allocation rules in line with the EU best practices.


The analysis covered:

  • Taxation issue assessment,
  • Comparative analysis of currently available joint capacity allocation platforms,
  • Gap assessment and recommendations, including the proposed changes to the text of the long-term and short-term capacity allocation rules.

The analysis also gave NEURC and Ukrenergo a detailed list of gaps in the allocation rules and recommendations for their elimination. It contributed to adopting legislative and regulatory changes and coordinated capacity allocation through Ukraine’s borders with the EU countries.

Joint auctions, both short-term and long-term, for cross-border capacity allocation will be conducted through the Joint Allocation Office (JAO) – a platform.

Despite Russia’s full-scale invasion of Ukraine on February 24, 2022, Ukraine has synchronized its electrical networks with the EU and become part of the European Network of Transmission System Operators for Electricity (ENTSO-E). USAID ESP supported Ukrenergo in preparing the power system for the island-mode operation, which was the final stage of the integration process.

The synchronization of Ukraine’s power system with ENTSO-E has improved the energy security of Ukraine and its integrated power system. In addition, it paved the way for the full integration of Ukraine’s electricity market with Europe, including the beginning of joint access to cross-border capacity allocation and the coupling of organized market segments.