Ukraine’s electricity market is undergoing significant changes as the government raised price caps at the beginning of 2026, a move aimed at stabilizing the market amid ongoing power shortages and enhancing import capabilities.
The adjustments saw price caps increase to 15,000 UAH per MWh on the day-ahead and intraday markets, and to 16,000 UAH per MWh on the balancing market. This shift is part of broader reforms intended to align Ukraine’s energy sector with European Union standards.
According to a recent report, these measures have contributed to market stabilization and improved conditions for electricity imports during times of capacity deficits. However, the report also noted that regulatory and structural constraints, such as the temporary price caps, continue to hinder the establishment of a fully market-driven pricing system.
The Energy Community has emphasized the need for Ukraine to gradually move away from administrative restrictions and fully embrace a market-oriented model. A key focus remains on ensuring the independence of regulatory bodies in making decisions related to market operations and tariff policies.
In a related statement, the state-owned company Ukrhydroenergo indicated that the increase in price caps has had a systemic effect, facilitating the attraction of imports and aiding in system balancing. Energy Minister Denys Shmyhal also highlighted that the adjustments allowed for the addition of approximately 1 GW of import capacity, which has been redirected to meet domestic needs.
Ukraine's recent increase in electricity price caps aims to stabilize the market and enhance import capabilities. While reforms are progressing, regulatory constraints still pose challenges to achieving a fully market-driven energy sector.