Boyko Suggests Merging Ukrainian & Russian Electricity Markets

Ukraine’s Minister of Fuel and Energy Yuriy Boyko is in favor of creating a common electricity market in the CIS. He wants this issue to be considered at the CIS summit in Yalta today. Alexander Paraschiy: It is not clear from Boyko’s statement what he means exactly by common electricity market. In any case, connecting the Ukrainian power grid to the Russian grid would allow to increase of power exports from Ukraine. In the most optimistic scenario, (a true common electricity market) we would expect Ukrainian electricity companies to work in the same operating environment and a quick convergence of market prices of Ukrainian generation company stocks (which trade at EV/Capacity of about USD 200/kW) and Russian power generators (traded at USD 600/kW).