Here is our Policy Briefing “Russian-Ukrainian Electricity Trade”
Effects of enabling electricity imports from Russia and Belarus
– Lower coal consumption in Ukraine -> allowing higher coal stocks in Ukraine and hence increasing supply security
– Reduced emissions, as typically Ukrainian coal plants are replaced by gas-fired units
– Increased Competition in the electricity market -> allowing electricity supply from Russia contests the market power in the highly concentrated Ukrainian market -> can lower electricity prices disproportionally
– Possible revenues for the Ukrainian state -> introducing import quotas allows the state to participate in the excess revenues from importing “cheaper” electricity from Russia
– Loss of revenues for Ukrainian generators -> Lower prices and volumes reduce cash-flow – which could in principle be invested.
– Increasing dependency on Russia