Competition Market Study of Ukraine's Electricity Sector / Organisation for Economic Co-operation and Development.

Format:

Book

Author/Creator:

Organisation for Economic Co-operation and Development, author, issuing body.

Language:

French

Subjects (All):

Energy security.

Physical Description:

1 online resource

Edition:

1st ed.

Place of Publication:

Paris : OECD Publishing, 2023.

Summary:

This market study analyses Ukraine's electricity sector from a competition perspective. It provides a detailed description and assessment of the regulatory framework within which the Ukrainian electricity markets operate, as well as an analysis of the obstacles to competition in the wholesale and retail markets.

Contents:

Intro

Preface by the EU Delegation to Ukraine

Preface by the Antimonopoly Committee of Ukraine

Foreword

Acknowledgements

Abbreviations and acronyms

Executive summary

1 Context of the market study and introductory remarks

References

Notes

2 Main market features

2.1. Electricity sector reforms

2.2. Overview of the electricity sector

2.2.1. Electricity consumption

2.2.2. Generation capacity

Nuclear power

Thermal power

Renewables

Support for renewables

2.2.3. Transmission and distribution

2.2.4. Electricity suppliers

2.2.5. Cross-border trade

3 Market functioning and regulatory framework

3.1. Wholesale market

3.1.1. Bilateral agreement market

Special section

Commercial section

Two-way continuous auctions

Auction rules

3.1.2. Day-ahead and intraday markets

Trading sequence

Price and volume limits

Main market participants

3.1.3. Balancing market and ancillary services

Balancing market

Ancillary services

3.2. Retail market

3.2.1. Regulated price segment

3.2.2. Unregulated price segment

3.3. Public service obligations

3.3.1. PSO for households

3.3.2. PSO for renewables

4 Assessment of the wholesale market

4.1. Concentration and market segmentation

4.2. Market power

4.2.1. Exercise of market power

4.2.2. Market integrity and transparency

4.2.3. Market power in Ukraine

4.3. Liquidity

4.4. Regulatory intervention affecting competition

4.4.1. Wholesale price caps

Price distortions

Cost recovery and hidden costs

Focal points for tacit collusion

No scarcity pricing and the "missing money" problem

Limitation on cross-border commercial electricity flows

European price limitation practices

4.4.2. Public service obligations

PSO for households.

PSO for renewables

4.4.3. Rules for the bilateral agreement market

4.5. Barriers to entry

4.5.1. Non-replicable access to resources and limits to potential generation investment

4.5.2. Nominal overcapacity in the power system

4.5.3. Debt accumulation

5 Assessment of the retail market

5.1. Business segment

5.1.1. Supply at unregulated prices

5.1.2. Supply at approved prices

5.1.3. Competition in the business segment

5.2. Household segment

5.2.1. Reasons for price regulation

5.2.2. Costs and benefits of price regulation

5.2.3. Effects on competition

6 Other issues

6.1. Market monitoring and surveillance

6.1.1. Market monitoring

6.1.2. Market surveillance

6.2. Electricity generation from renewable energy sources

6.2.1. Efforts to fight climate change

6.2.2. Cost competitiveness

6.2.3. Power system flexibility and prices

6.2.4. Moving towards competition

6.2.5. Moving towards a level playing field (guarantees of origin)

6.3. Integration with EU energy markets

6.3.1. Current status and recent developments

6.3.2. Functioning of cross-border trade

6.3.3. Market integration and competition

7 Conclusion and recommendations

7.1. Promote competition in the wholesale electricity market

7.1.1. Improve price formation

Remove price limits

Revise technical price limits

Allow negative market prices

7.1.2. Reduce market segmentation

Reduce market segmentation to increase liquidity

Promote direct marketing by RES producers

7.1.3. Other steps to improve market function

Improve market surveillance

Increase market transparency by improving the quality of reporting

Provide potential investors with reliable information on long-term generation capacity developments.

Promote liquidity on the DAM

Carry out an independent evaluation of bilateral electronic auctions on the Ukrainian Energy Exchange

Promote demand side response by consumers

Allow long-term commercial power purchase agreements for new generation capacity

7.2. Promote competition in the retail electricity market

7.2.1. Phase out regulated prices for households

7.2.2. Simplify and improve ways to switch suppliers

7.2.3. Improve transparency of supply contracts in the business segment

7.3. Promote RES generation and market participation

7.3.1. Develop incentives for current and future RES producers to participate in the balancing market by providing balancing services

7.3.2. Implement a certification mechanism for electricity produced from RES (guarantee of origin)

7.3.3. Create a level playing field for zero-carbon generation technologies

7.3.4. Support for new (non-residential) RES facilities should be granted solely through competitive auctions

7.3.5. Evaluate the cost-effectiveness of feed-in premiums vs. feed-in prices for RES auctions

7.4. Cross-border market integration

7.4.1. Increase interconnection capacity to work towards the EU target of at least 15% by 2030

7.4.2. Work towards full market coupling

Notes.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

92-64-64394-X