The National Commission for State Regulation of Energy and Public Utilities (NERC) has adopted new rules regarding the long-term allocation of capacity at Ukraine’s cross-border interconnections with three European Union countries.
This is reported by Finway
New Opportunities for Electricity Trading with the EU
The adoption of these rules creates conditions for the introduction of a joint monthly allocation mechanism on the electronic platform Joint Allocation Office (JAO). According to NERC, the implementation of coordination through this platform opens up new trading opportunities for Ukraine in electricity with Slovakia, Hungary, and Romania under more favorable conditions.
The Joint Allocation Office Platform and Ukraine’s Experience
Joint Allocation Office is a specialized European platform that organizes auctions for the allocation of capacity on cross-border electricity transmission lines. Ukraine participated in JAO auctions for the first time on January 16, 2024, alongside the Polish operator PSE, during the joint daily auctions. Auctions for the routes Ukraine – Slovakia and Ukraine – Hungary also started during the same year.
This will allow for the establishment of a joint monthly allocation mechanism through the electronic platform Joint Allocation Office (JAO). The implementation of a coordinated monthly mechanism through the JAO platform opens access to electricity trading with Slovakia, Hungary, and Romania under new, more favorable conditions for Ukraine, explained NERC.
Currently, electricity trading with Romania on the JAO platform is not taking place; however, the new rules pave the way for the launch of such auctions in the future.