SMART INTEGRATION OF UKRAINE’S ENERGY SYSTEM INTO THE SINGLE ENERGY MARKET OF THE EU: CHALLENGES AND PROSPECTS

Authors

DOI:

https://doi.org/10.35774/jee2025.02.246

Keywords:

energy market, energy sector, environmental transformation, Eurointegration, European Union, smart grid, Ukraine.

Abstract

This article is devoted to analyzing the process of Ukraine’s energy market integration into the single energy space of the European Union. It examines the current state of this integration, key challenges, and future prospects. A comprehensive methodological approach was employed, including a comparative analysis and, for the first time, a SWOT analysis, to identify the Ukrainian energy system’s strengths, weaknesses, development opportunities, and threats— particularly those arising from military actions and environmental challenges. Special focus is placed on the synchronization of the Ukrainian power system with Europe’s ENTSO-E grid, its modernization, and implementation of new technologies, which create new opportunities for electricity exports and imports as well as for attracting international investment. A Pearson correlation analysis was also conducted for the first time to evaluate electricity import volumes and their impact on the country’s energy security. The study concludes that for Ukraine to achieve full integration with the EU energy market, it must implement extensive technological modernization, expand international partnerships, harmonize its legislation, and adopt new environmental standards.

JEL: F15, Q40, Q48, Q58, O38.

Author Biographies

Roman ZVARYCH, West Ukrainian National University, Ternopil, Ukraine

Doctor of Economic Sciences, Professor, Head of Department of International Economic Relations

Bohdan KHARKOVSKYI, West Ukrainian National University, Ternopil, Ukraine

PhD student, Department of International Economic Relations

References

Abnet, K., & Strzelecki, M. (2022, March 1). Explainer: Europe and Ukraine’s plan to link power grids. Reuters. https://www.reuters.com/business/energy/ europe-ukraines-plan-link-power-grids-2022-03-01/

Baidala, V., & Nahornyi, V. (2023). Study of the efficiency and perspectives of the development of wind energy in the world [in Ukrainian]. Ekonomika ta Suspilstvo, (55). https://doi.org/10.32782/2524-0072/2023-55-83

Böttcher, P. C., Rydin Gorjão, L., Beck, C., Jumar, R., Maass, H., Hagenmeyer, V., Witthaut, D., & Schäfer, B. (2023). Initial analysis of the impact of the Ukrainian power grid synchronization with Continental Europe. Energy Advances, 2, 91-97. https://doi.org/10.1039/D2YA00150K

Committee on Ukraine’s Integration into the European Union, Verkhovna Rada of Ukraine. (2020). Integration of Ukraine's energy system into the European energy system [in Ukrainian]. https://comeuroint.rada.gov.ua/news/main_ news/73095.html

Cretti, G., Soldatiuk-Westerveld, J., D’Amico, G., Lapenko, O., & van Schaik, L. (2024). Integration of Ukraine’s energy sector into the EU: A joint study [Clingendael Policy Brief]. DiXi Group. https://dixigroup.org/integracziyaenergetychnogo-sektoru-ukrayiny-do-yes-spilne-doslidzhennya-dixi-groupta-clingendael-institute/

DiXiGroup. (2025, January 22). Ukraine’s record imports and minimal exports of electricity over the past decade were recorded in 2024.

https://dixigroup.org/en/ukraines-record-imports-and-minimal-exports-ofelectricity-over-the-past-decade-were-recorded-in-2024/

DTEK Merezhi. (2024, May 3). Smart Grid technologies are poised to become the basis for power system restoration [in Ukrainian]. https://grids.dtek.com/media-center/press/tekhnologii-smart-grid-stanut-osnovoyu-vidnovlennyaenergosistemi--dtek-merez/

Energy Map. (n. d.). Imports and exports of electricity by the hour [Infographic] [inUkrainian]. Retrieved March 1, 2025, from https://map.uaenergy.org/uk/resources/56df70b0-6bc1-4c7d-a82f-284cf723438d/

European Commission. (n. d.). Security of electricity supply. https://energy.ec.europa.eu/topics/energy-security/security-electricity-supply_en

IEA. (2017). Digitalisation and energy. International Energy Agency. https://www.iea.org/reports/digitalisation-and-energy

eu-ua.kmu.gov.ua. (2023, March 29). The EU will continue to support Ukraine’s energy sector [in Ukrainian]. https://eu-ua.kmu.gov.ua/news/yesprodovzhuvatyme-pidtrymku-energetychnogo-sektoru-ukrayiny/

International Renaissance Foundation. (2024, December 10). Ukrainian Energy Security Dialogue 2024: Key challenges, solutions, and prospects for Ukraine’s energy security. https://www.irf.ua/en/ukrainian-energy-securitydialogue-2024-key-challenges-solutions-and-prospects-for-ukrainesenergy-security/

Kharin, S., Papizh, Y., & Korovin, S. (2024). Model of economic decarbonization in the context of climate change: Issues of management and innovation [in Ukrainian]. Ekonomika ta Suspilstvo, (59). https://doi.org/10.32782/2524- 0072/2024-59-45

Kolmek, F., Martyniuk, O., Poluliah, I., & USAID Energy Security Project. (2024, October 9). What Ukraine has gained and what it can additionally gain from integration into the single European energy market [in Ukrainian]. Ukrainska Pravda. https://www.eurointegration.com.ua/experts/2024/10/9/7195805/

Lutkovska, S., Kolomiiets, T., & Zelenchuk, N. (2023). Prospects for the development of renewable energy in the context of European integration processes on the way to sustainable economic development [in Ukrainian]. Investycii: Praktyka ta Dosvid, 1, 11-21. https://doi.org/10.32702/2306-6814.2023.1.11

Maksymova, I., & Nastase, C. (2024). European model of climate-neutral business development based on digitalization principles. Journal of European Economy, 23(2), 336-352. https://doi.org/10.35774/jee2024.02.336

Ministry of Energy of Ukraine. (2023). European integration [in Ukrainian]. https://www.mev.gov.ua/storinka/yevropeyska-intehratsiya

Mykhailova, L., Semenyshyna, I., & Shpatakova, O. (2023). Green energy as a factor of energy independence of Ukraine [in Ukrainian]. Ekonomika ta Suspilstvo, (47). https://doi.org/10.32782/2524-0072/2023-47-10

National Institute for Strategic Studies. (2014). Energy Strategy of Ukraine until 2035: White Paper on energy policy of Ukraine [in Ukrainian]. [Draft]. https://niss.gov.ua/sites/default/files/2015- 12/Energy%20Strategy%202035.pdf

Ohdanska, О., & Chernobryvets, S. (2024). Prospects for green energy in the context of geopolitical changes [in Ukrainian]. Ekonomika ta Suspilstvo, (68). https://doi.org/10.32782/2524-0072/2024-68-82

OECD. (2019). Snapshot of Ukraine’s energy sector: Institutions, governance and policy frameworks [in Ukrainian]. OECD. https://www.oecd.org/content/ dam/oecd/uk/publications/reports/2020/12/_c6854d07/6c0a9228-uk.pdf

Oriekhova, A., Klymenko, M., & Khorolets, B. (2024). Problems and features of alternative energy management in Ukraine during a full-scale war [in Ukrainian]. Eknomika ta Suspilstvo, (63). https://doi.org/10.32782/2524-0072/ 2024-63-23

Papadopoulou, M., Passalacqua, R., Rossetti di Valdalbero, D., & Righi Steele, E. (2021). Decarbonising the EU power sector: A technological and socioeconomic analysis and the role of nuclear [Preprint]. UCL Open: Environment. https://doi.org/10.14324/111.444/000110.v1

Plakhotnyuk, N., & Ikonnikova, N. (2018). European energy market and prospects of Ukraine [in Ukrainian]. Social Legal Studios, 1, 128-134. https://slsjournal.com.ua/web/uploads/pdf/S&LS_2018_Vol.%201,%20No.%201_128-134.pdf

Razumkov Centre. (2020). Ukraine’s sectoral integration into the EU: Preconditions, prospects, challenges. https://razumkov.org.ua/uploads/article/2021_ sektor_eu_ukr.pdf

Shnyrkov, O., & Chugaiev, O. (2023). Economic integration of Ukraine: Context of the Russian-Ukrainian war. Journal of European Economy, 22(1), 48–69. https://doi.org/10.35774/jee2023.01.048

Ukrainian Centre for European Policy. (2023). Ukraine’s integration into the EU internal market in wartime: Challenges and opportunities. https://ucep.org.ua/ doslidzhennya/integracziya-ukrayiny-do-vnutrishnogo-rynku-yes-v-umovahvijny-vyklyky-ta-mozhlyvosti.html

UN Human Rights Monitoring Mission in Ukraine. (2024, September). Attacks on Ukraine’s energy infrastructure: Harm to the civilian population [Bulletin]. https://storymaps.arcgis.com/stories/2a2d87ae29f34207909828d7198c337c

U. S. Department of Energy. (n. d.). Grid modernization and the smart grid. https://www.energy.gov/oe/grid-modernization-and-smart-grid

Zulhusni, M. (2024, December 2). The future of power: Why smart grids matter. Sustainability News. https://sustainability-news.net/industries/energy/thefuture-of-power-why-smart-grids-matter-today/

Received: March 5, 2025.

Reviewed: April 16, 2025.

Accepted: May 7, 2025.

Downloads

Published

01.06.2025

How to Cite

ZVARYCH, Roman, and Bohdan KHARKOVSKYI. “SMART INTEGRATION OF UKRAINE’S ENERGY SYSTEM INTO THE SINGLE ENERGY MARKET OF THE EU: CHALLENGES AND PROSPECTS”. Journal of European Economy, vol. 24, no. 2, June 2025, pp. 246-6, doi:10.35774/jee2025.02.246.

Issue

Section

EUROPEAN INTEGRATION