USAID ESP Helps Ukraine to Enhance its Gas Market Balancing Rules and Harmonize Them with the EU Network Code.

March 7, 2024

The USAID Energy Security Project (ESP) presented the results and main findings of its Project on Gas Market Balancing Analysis and Key Recommendations to implement to achieve transparent and efficient gas market balancing in Ukraine.

Opening the presentation, Kathleen Kirsch, Deputy Director, Office of Critical Infrastructure, USAID/Ukraine, has underlined that “USAID remains strongly committed to continue supporting the Ukrainian energy sector to enhance energy security and advance energy legal and regulatory developments on market reforms. The martial law put many market developments on hold, including changes to the balancing rules. Despite most of them aimed to stabilize the situation, the changes introduced significantly influenced the balancing process and affected market participants. Gas Market Balancing Analysis implemented through USAID Energy Security Project aimed to enhance balancing rules and harmonizing them with the EU Network Code.”

According to USAID ESP Gas Sector Lead Justin Goonesinghe, the Gas Market Balancing Analysis covers physical and commercial balancing in natural gas since the introduction of martial law in Ukraine. It contains recommendations to ensure the physical integrity and economic equilibrium of the system through the introduction of effective balancing rules harmonized with the EU Balancing Network Code (EU BAL NC).

The experts of Ernst & Young, subcontracted by the USAID Energy Security Project to implement the Analysis, presented recommended legal and financial changes to the Gas Transmission System Code to achieve transparent and efficient gas market balancing in Ukraine.

Dmytro Lyppa, CEO of the Gas Transmission System Operator of Ukraine, firmly believes that key findings and recommendations will help both the Gas TSO of Ukraine and the National Energy and Utilities Regulatory Commission (NEURC) to implement the proposed legal and financial changes to achieve transparent and efficient gas balancing rules in Ukraine and harmonize them with the EU Network Code.