The Ukrainian energy sector is facing potential financial repercussions as proposed regulatory changes could shift the burden of systemic electricity constraints onto producers and investors. Experts warn that this could adversely affect the operational viability of power plants and deter the development of new energy generation facilities.
On March 17, the National Commission for State Regulation of Energy and Public Utilities (NERC) is scheduled to review amendments to Resolution No. 332, focusing on agenda item No. 36. According to energy expert Ihor Retivov, the proposed framework would significantly diminish the financial outcomes for producers during periods of systemic constraints in the Unified Energy System of Ukraine.
Retivov criticized the approach as a mere redistribution of problems rather than a systematic solution, noting that financial pressures from the balancing market would disproportionately impact participants already exposed to operational, market, and regulatory risks. He stated, “This is a negative signal for generation, particularly for new projects that rely on predictable revenue models, clear rules, and trust in the regulatory environment.”
He suggested that a more equitable distribution of costs among all market participants could provide necessary support to NEC Ukrenergo while preventing financial burdens from concentrating solely on generation, which could undermine investment in new projects. Retivov emphasized the importance of revising the proposal to avoid hindering the recovery of Ukraine’s energy sector.
He concluded, “It is crucial to refine this project so that the stabilization of the balancing market does not occur at the expense of both existing and new generation, which the state is actively encouraging to build.”
Previously, electricity producers from both state-owned and renewable sources have expressed concerns regarding the unfairness of being held accountable for systemic constraints that arise from local accidents or attacks on energy infrastructure, particularly those linked to ongoing conflicts.
Proposed changes to Ukraine's energy regulations may impose financial burdens on electricity producers, raising concerns about the viability of existing and new energy projects. Experts advocate for a more equitable distribution of costs to protect investment in the sector.