Wednesday, June 3, 2015

EC's Vice President: Ukraine can play an active role in the European energy market

Vice President of the European Commission, in charge of Energy Union, Maroš Šefčovič presented  his views about Ukraine as part of the European energy market at the Energy panel of International Conference for Reform in Ukraine. He outlined Ukraine's achievements so far and the main directions and challenges ahead.
Among achievements towards integrating the Ukrainian energy sector into that of the EU, he mentioned:

- Ukrainian government's efforts to increase energy security, in particular, to diversify natural gas import - while in 2013 Ukraine received less than 10% of its imported gas from the EU, in 2015 share of gas import from EU countries may reach 50%;
- the new law on natural gas market brings Ukraine's gas sector legislation in full compliance with the EU energy market;
- significant progress in cooperation on energy efficiency and renewables, including active
participation of Ukrainian towns and cities in the Covenant of Mayors, an EU network to share best practices on energy efficiency. Currently 73 municipalities have signed up, representing some 10% of Ukraine's population.

Still, some other important steps have to be made:
- establishing an open and competitive Ukrainian market, which could bring energy costs down. New fundamental pieces of legislation should be adopted to enforce the functioning of a truly independent energy regulator, to provide an equal and fair access to transmission infrastructure and ensure reform of Naftogaz;
- upgrading and extending the existing gas inter-connectors to allow for the increased EU gas supplies to Ukraine;
- enhancing Ukraine's international cooperation with partners from EU countries to benefit from the most effective use of its very powerful gas storage system, from its advantages as a transit country, but also to realize its huge potential for energy efficiency.