FORMATION OF THE EXISTING MODEL OF ELECTRICITY MARKET IN UKRAINE

Abstract

All processes related to the purchase and sale of electricity in Ukraine are regulated by the requirements and rules of the market operating in this area. This article examines the main models of existing electricity markets: the vertically integrated market model, the three-stage Single Buyer model, models with deregulated wholesale electricity trade and, as their evolution, models with deregulated wholesale and retail trade. The stages of formation of the domestic electric energy market for the period from 1991 to 2019 were studied, their main events, purpose and results were summarized and reflected, the final of which was the gradual transition to the market model of bilateral contracts and the balancing market. The shortcomings that led to the transition from the Single Buyer model, as well as the reasons that were a prerequisite for the transition to the existing model, were considered. Particular attention was paid to a number of documents that were developed, adopted and approved for the purpose of implementing competitive mechanisms for the operation of the electric energy market, and, as the ultimate goal, the organization of the new model of the electric energy market. A number of fundamentally new components and segments of the electricity market model introduced in 2019 were identified, in particular: under bilateral contracts, "a day ahead", intraday and balancing markets. Special attention is paid in the article to a complex of existing problematic issues that currently exist during the operation of the existing model of the electric energy market and are an obstacle to the further successful development of the domestic electric power industry, in particular: limited competition, fluctuations in the "a day ahead" market segment; cross-subsidization; transfer of tariffs; insufficient financial resources of market participants, insufficient system monitoring, etc. The need for further research in the direction of the development of effective organizational and economic mechanisms for the functioning of all segments of the electric energy market has been determined.