KNESS at the Committee Hearings: “Implementation of the 4th EU’s Energy Package "Clean Energy for All Europeans" by Ukraine”

Serhii Kravchuk, Director of Electricity Trading and Supply in KNESS, took part in a panel discussion on the benefits of the EU’s Fourth Energy Package for consumers.

The key highlights of our expert:

The emergence of active consumers

Active consumers are energy service customers who consume, generate or store electricity, sell surplus generated/stored electricity, or participate in energy efficiency and demand management measures in accordance with the requirements of the law, on condition that these activities are not professional and/or business activities.

Support for active consumers through the self-production mechanism

The self-production mechanism is a scheme for mutual settlement of the cost of the electricity output to the grid and the cost of the electricity consumed from the grid by the generating units of such consumers  taking into account the cost of electricity transmission and/or distribution services. Support for active consumers under the self-production mechanism will be provided by guaranteeing the purchase of electricity produced from alternative energy sources and output by such active consumers on the basis of a concluded power purchase and sale contract  under the self-production mechanism, which is an annex for the electricity supply contract to the consumer

The emergence of a new type of activity in the electricity market, namely aggregation

Aggregation is a licensed type of activity for the combined operation of electrical installations intended for the production and/or consumption and/or storage of electricity for the purpose of electricity purchase and sale, providing ancillary services and/or balancing services in the electricity market. An aggregator is a party responsible for the balance of all electrical installations included in its aggregation unit, except for electrical installations intended for consumption by consumers who purchase electricity from another market participant that supplies electricity to the consumer.

The implementation of the EU’s Fourth Energy Package in Ukraine has already been launched. In particular, some provisions have already been implemented by the Law of Ukraine No. 3220-IX, “On Amendments to Certain Laws of Ukraine on the Restoration and Green Transformation of the Energy System of Ukraine”. This is a step towards the energy market’s demonopolization and decentralization, aimed at ensuring fair, non-discriminatory conditions for new players, including producers and consumers of green energy.

Creating an environmentally friendly, equitable, peaceful, energy-independent future together.