Learning from Power Sector Reform : The Case of Ukraine
At the time of independence, in 1991, Ukraine had a monolithic state-run power sector. Its main concern was to transform the sector into a more efficient and competitive system that can be consistent with eventual European Union membership. A serie...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099935002022218544/P1573760be73df0b10b68f0cab9aa1226a9 http://hdl.handle.net/10986/37069 |
| Summary: | At the time of independence, in 1991,
Ukraine had a monolithic state-run power sector. Its main
concern was to transform the sector into a more efficient
and competitive system that can be consistent with eventual
European Union membership. A series of steps were taken in
this direction - some unbundling of the sector; limited
privatization; establishing a regulator; and creating a
wholesale power market. Unfortunately, these reform steps
did not achieve the reform objectives, and, at the time,
there was no political consensus on the path forward. The
changing regional political landscape, especially driven by
the Crimea crisis, raised a fresh impetus for the reforms as
the sector faced new concerns. Security of supply concerns,
particularly over gas from Russia and limited access to high
quality coal mines, were suddenly centerstage for a country
where the inherited system had excess supply even at peak
demand. Sector reforms were undertaken to align more closely
with the second and third European Union energy packages.
This case study follows Ukraine power sector’s reform
process and presents lessons learned that can be useful for
other developing countries. |
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