Photo: https://www.facebook.com/kmathernova
The most important reforms for the future of Ukraine’s energy sector are: market liberalization; unification of markets in the energy sector; continuation of reforms in the gas sector; building a truly independent regulator.
This was stated by Ambassador of the European Union to Ukraine Katarína Mathernová at the conference “Ukraine’s Energy Sector: Strategies for Recovery and Growth” of the We Build Ukraine think tank on September 16, an Interfax-Ukraine correspondent reports.
She stressed that there are many issues that are very difficult to resolve during a war, such as very expensive PSO obligations, but that this is what they need to work on, and that for the energy sector of the future to be truly competitive, they will need to go through those reforms.
Mathernová noted that the EU is conducting an active dialogue with Ukraine on reforms.
She recalled that the adoption of various legislation on the development of the energy sector and institution-building is part of the European financing program Ukraine Facility and the Ukraine Plan that underpins it.
In fact, there are financial rewards associated with different parts of the legislative process, and one of them will come this fall, and the others in the following years, she noted.
The EU Ambassador added that two other main areas of cooperation in the energy sector are emergency response related to Russian attacks on Ukrainian energy facilities, as well as support, including investment, diversification, decentralization and distribution of energy sources, energy transmission – whether gas or electricity.
Mathernová noted that Russian attacks on Ukrainian energy facilities continue and mentioned the recent attacks on the Trypilska TPP, gas storage facilities and various parts of the energy system that she cannot even name.
According to her, the European Union has provided over EUR 3 billion in such emergency assistance since the start of Russia’s full-scale invasion, as well as helping to increase electricity import capacities and supply necessary equipment. In this regard, she mentioned the Vilnius Thermal Power Plant, which was dismantled and transported to Ukraine in parts, which, fortunately, was not damaged during the latest attack on the Trypilska TPP, so it can actually be used for important spare parts.
The EU Ambassador stated that now, perhaps, there is a little less cohesion and coordination between Ukraine’s partners in such support for the Ukrainian energy sector as there was during the previous US administration and the “energy Ramstein,” but there is still a lot of support.
In her opinion, thanks to the excess capacities created in Soviet times, Ukraine will be able to cope with this winter without serious targeted Russian attacks. However, she added, in the event of new attacks, the forecasts are more like fortune-telling in a crystal ball.
But extraordinary support is what we have focused a lot on in the energy sector, and we will continue to do so, the EU Ambassador emphasized once again.
Regarding the third area of cooperation, Mathernová welcomed the fact that after some delay of about a year, Ukraine has actively moved from talking about distributed and decentralized energy sources and the need to build them to the real implementation of these steps.
According to her, there’s a lot more energy being put into real action now, both in renewables and in developing smaller energy sources, and we’re very supportive of that.
In this regard, she mentioned the EU’s joint programmes with the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) to support private sector investment, as well as continued investment in the state-owned energy sector.
So, emergency support, reforms, market integration and investment are the three areas we are focusing on, Mathernová concluded.
