Ukraine appoints first operator to unite energy market with EU
Ukraine has appointed its first nominated electricity market operator, or NEMO. The status was awarded to JSC “Market Operator,” which is set to become a key participant in the future coupling of Ukraine’s electricity market with the European one.
The decision was made on August 18 by the National Energy and Utilities Regulatory Commission.
NEMO is a nominated electricity market operator. Its role is to run the day-ahead and intraday markets under the market coupling mechanism, which links national electricity markets of different countries.
What the NEMO designation changes
NEMO status is necessary for the Ukrainian operator to interact with similar operators and transmission system operators of the EU and the Energy Community. This includes accepting market participants’ orders, determining trading results, handling settlements, and working with pan-European market coupling mechanisms.
The relevant powers were established in Law No. 4834-IX, which brought Ukraine’s energy market rules closer to EU legislation. For a legal entity receiving NEMO status for the first time, the law provides for a four-year term. Subsequently, the operator may be appointed indefinitely.
On July 7, NEURC approved the procedure for appointing a NEMO. The regulator then called the next stage the direct designation of the operator. That stage is now complete.
Why Ukraine wants to couple its energy market with the EU
Market coupling involves joint operation of electricity markets in different countries, with simultaneous consideration of buy and sell orders and available cross-border transmission capacity. This model is already used in the EU.
According to the EU Agency for the Cooperation of Energy Regulators, ACER, NEMOs take part in operating algorithms and systems that ensure the single coupling of day-ahead and intraday markets. The mechanism allows more efficient allocation of available cross-border capacity and combines orders from participants in different markets.
For Ukraine, this should create conditions for fuller cross-border electricity trading under EU rules, enhancing market liquidity and competition. At the same time, the NEMO designation itself does not mean automatic coupling of the Ukrainian and European markets: before market coupling is launched, technical, regulatory, and organizational procedures must be completed.
Ukraine’s power system is already synchronized with the continental European grid, but market coupling is a separate integration step. The European Commission has previously stated its goal of full market coupling between Ukraine and the EU electricity market.
