Market Operator Becomes Ukraine’s First NEMO

Ukraine’s National Energy and Utilities Regulatory Commission (NEURC) has designated JSC Market Operator as the country’s first Nominated Electricity Market Operator (NEMO). The decision was adopted at a NEURC meeting on August 18.

The designation marks a key step toward the future integration of Ukraine’s electricity market with European markets through the market coupling mechanism.

Since 2019, Market Operator has been responsible for the operation of Ukraine’s day-ahead market (DAM) and intraday market (IDM). Since 2022, the company has participated in European cooperation frameworks related to the Single Day-Ahead Coupling (SDAC) and Single Intraday Coupling (SIDC) projects, while also contributing to preparations for Ukraine’s future accession to these mechanisms.

According to NEURC, obtaining NEMO status is an essential institutional prerequisite for the further integration of Ukraine’s DAM and IDM with the corresponding electricity markets of EU member states.

The market coupling mechanism aims to integrate electricity markets under common rules and procedures, enabling more efficient use of cross-border transmission capacity and facilitating the development of cross-border electricity trade.

At the same time, the appointment of Market Operator as the first NEMO does not limit the possibility of other nominated electricity market operators entering the Ukrainian market. Ukraine’s Law on the Electricity Market allows multiple NEMOs to operate, provided they meet the established requirements, ensuring competition and non-discriminatory market conditions.

Earlier, NEURC approved the procedure for the designation and certification of nominated electricity market operators, which was one of the measures required under Ukraine’s electricity market integration package with the European Union.