First crucial step taken in implementing market coupling in Ukraine

On 7 July 2026, the NEURC adopted Resolution “On the Approval of the Procedure for Appointing a Nominated Electricity Market Operator (NEMO), Suspending Its Activities, Terminating Its Functions as the NEMO, and Monitoring the Activities of the NEMO” No.1089 (“Resolution”) approving the procedure for designating and functioning of the NEMO in Ukraine.

The NEMO is a designated market operator appointed by the NEURC to organize centralised day-ahead and intraday market coupling between Ukraine and the EU. In Ukraine, this designation is a critical component of integrating the national electricity market with the European Union (EU) target model, facilitating cross-border trade and capacity allocation under EU Regulation 2015/1222 (CACM Guideline).

The core functions of the NEMO are as follows:

• acting as the central counterparty on the electricity market;
• organizing auctions on the day-ahead and intraday markets;
• ensuring one single market price; and
• ensuring equal terms and conditions for all market participants.

According to the Resolution, any company may be nominated as the NEMO if it meets the following criteria:

• has entered into agreements for a sufficient amount of financial resources, necessary IT, technical infrastructure, and operational procedures;
• can provide market participants with open access to information and ensure non-discriminatory treatment of all market participants;
• demonstrates cost-effectiveness in the context of the integrated “day-ahead” and intraday markets;
• maintains an appropriate level of separation of its business activities from other market participants;
• has a monitoring system for appropriate market surveillance; and
• complies with other requirements outlined in the Resolution.

The Resolution generally takes effect on 8 July 2026. However, the authority granted to the NEMO to delegate its powers—as outlined in paragraph 3.12—will become effective on the launch date of the day-ahead market coupling.

Additional notes

For further information on the topic please contact senior partner Glib Bondar or managing associate Olena Sichkovska-Chornobyl, or by telephone +380 44 591-3355 or via e-mail.