REUTERS
A new electricity market in Ukraine is to be launched on July 1, 2019, under the country's law on the electricity market.
Energy expert at the Ukrainian Institute for the Future Andrian Prokip has said the launch of a new electricity market in Ukraine will stimulate the creation of additional gross domestic product (GDP) worth US$72 billion over a decade.
Read alsoUkrenergo names risks of launching electricity market from July 1
"The implementation of the electricity market reform, in line with transparent rules and practices, preventing non-competitive actions, can bring significant benefits to the country. According to estimates of the Ukrainian Institute for the Future, the reform can stimulate the creation of an additional US$72 billion [in GDP] by 2030. At the same time, as of today, the Ukrainian economy's reform-relating spending is estimated at more than US$6.5 billion per year," he wrote in his article published by the Ukrainian news outlet Hvylya on June 11.
According to the expert, the state-owned energy generating companies, namely Energoatom and Ukrhydroenergo, will be the main beneficiaries in the generation sector, as they will be able to attract US$2.9-US$4 billion in investment. The funds will be injected into the construction of new facilities and renovation of the existing ones, which will help boost electricity exports. In seven years (until 2027), the exports will more than quintuple.
Prokip says the energy reform is needed not only because Ukraine has undertaken obligations to international partners to introduce it, but the reform will have a positive impact on the country's energy sector and the economy as a whole. At the same time, the delay in the launch of the market will lead to a crisis in the industry, and Ukraine will become an electricity importer rather than an exporter.
"This reform is needed not for the sake of reform itself, not only because Ukraine has international obligations, but because it will have positive impact on the energy sector and the national economy, which will subsequently be felt by consumers. At the same time, the postponement of the launch of the market for years is banal immaturity. Existing problems will continue to accumulate, the electric power sector will not be developing, and existing capacities will further deteriorate, while new ones won't be built. So, in 12 years, we will turn into an importer of electricity," he wrote.
As was earlier reported, the new electricity market in Ukraine is to be launched on July 1, 2019, under the country's law on the electricity market.