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
What is a Policy Briefing?
Similar to Policy Papers, current or possible future policy topics are discussed. The economic analysis and policy recommendations are presented in a concise manner, focussing on the core arguments and results.