Commitments for the future: EU Energy Policy and Ukraine by Hans Rhein, First Secretary of the Delegation of the European Union to Ukraine
Commitments for the future: EU Energy Policy and Ukraine by Hans Rhein, First Secretary of the Delegation of the European Union to Ukraine as presented at an Annual Ukrainian Energy Forum
European Union’s external policy towards its neighbours was developed in 2004 and is set to promote good governance, economic and social development in countries around the EU’s land and sea borders. The policy foresees closer political links and elements of economic integration
From 1 January 2007 a new framework for planning and delivering assistance was developed and is called European Neighbourhood and Partnership Instrument (ENPI). ENPI has an increased financial assistance (national envelope for Ukraine Euro 964 million for 2007-2013), it is more flexible, provides budget support and includes transnational/regional and cross-border actions.
EU-Ukraine Energy Cooperation: Policy and Cooperation Framework:
EU – Ukraine Memorandum on Energy was signed in 2005, covering five areas of cooperation: Nuclear safety, Energy markets convergence, Security of supply, Energy efficiency and renewable energy, Coal sector reform, Association Agenda adopted in November 2009 included specific energy cooperation goals. Also negotiations progressed on association agreement and a comprehensive free trade agreement (DCFTA) including specific energy chapters.
EU-Ukraine Energy Cooperation – What results has been achieved so far?
Ukraine became a Member of Energy Community on 1 February 2011. EU and IFIs stated the commitment to help modernise Ukraine’s Gas Transit System by signing Joint Declaration on 23 March 2009. The assessment of safety of Ukrainian Nuclear Power Plants in operation was successfully finalised with the final Report issued in May 2010. Nearly Euro 150 million is committed as Budget Support for the energy and energy efficiency sectors.
EU-Ukraine Energy Cooperation – What EU expects from Ukraine’s Energy Reform?
EU expects the successful implementation of ECT commitment i.e. liberalisation of the energy market by promoting independence of the energy regulator(s), implementation of a number of EU directives (environment, renewable energy, energy efficiency, competition), development of a comprehensive energy sector reform programme, including the review of the Energy Strategy until 2030; providing sustainable economic basis for the energy sector operation, including restructuring of NAK Naftogaz and state-owned energy companies; improve investment climate; increase transparency in the energy sector; join and implement the Extractive Industries Transparency Initiative (EITI); decrease the Country’s energy intensity; implement sectoral policy measures (housing sector, power sector, etc.); increase energy efficiency awareness; develop the renewable energy potential - review effectiveness of green tariffs and ensure a fair and transparent access to them.