Ukraine Energy Market Observatory: EU integration milestones reached as regulator governance comes into focus 
 

The Secretariat’s Q3 2026 Ukraine Energy Market Observatory Report shows that during the third quarter of 2026, Ukraine appointed its first nominated market operator to link its electricity markets with EU markets, adopted EU-aligned renewable energy rules and passed, at first reading, a law to strengthen the independence of its energy regulator. Alongside the report, the Secretariat published an assessment of the August 2026 changes in the chairmanship of the national regulator, NEURC, with recommendations to strengthen the stability and transparency of its leadership. The Secretariat identified four key developments shaping Ukraine’s energy market during the third quarter of 2026:

1. Ukraine takes a key step towards linking its electricity market with the EU 
In August 2026, the energy regulator NEURC appointed Ukraine’s Market Operator as the country’s first Nominated Electricity Market Operator (NEMO) – the body responsible for linking Ukraine’s day-ahead and intraday electricity trading with EU markets. Ukraine also adopted rules on preparing for electricity supply crises, in line with EU law. However, Ukraine has yet to start transposing most EU network codes and guidelines – the detailed technical rules for cross-border electricity trading and grid operation. A working group has been set up to clarify which institution is responsible.

2. New renewables law in force and strong investor interest in auctions 
Law No. 4963-IX transposing the EU Renewable Energy Directive entered into force on 1 October 2026, simplifying permitting and introducing renewables acceleration areas, renewable energy communities and guarantees of origin for biomethane. All three renewable support auctions held in September were successful, with demand for solar-plus-storage and wind projects far exceeding the quotas.

3. NEURC independence reform awaits final adoption as leadership changes raise concerns 
The draft law strengthening NEURC’s independence was adopted in first reading on 16 September 2026, reflecting a long-awaited push for reform. Preparation for a second reading is ongoing. NEURC also  launched, with the EBRD, the procurement of an independent audit of its financial and decision-making processes. The Secretariat stresses that the final law must comply with the Energy Community acquis.

4. Regulated prices extended, but first steps towards market liberalisation taken
Public service obligation regimes were extended until spring 2027 in both electricity and gas. The Secretariat underlines that these extensions must remain temporary and be accompanied by a gradual reduction of tariff gaps and better-targeted support for vulnerable consumers. Positively, the Ministry of Energy started preparing the roadmap for the gradual liberalisation of electricity and gas markets, and the Government approved an action plan to separate power generation assets from the gas transmission system operator by the end of 2026, in line with Energy Community rules. It also took a first step towards the partial lifting of the ban on gas exports by allowing private companies to propose the portion of their volumes for export in accordance with Governmental procedure.