The Policy Proposal “Designing a Suitable Emissions Trading System for Ukraine: Squaring EU Convergence, Price Certainty, and Competitiveness” explores the complex task of aligning Ukraine’s climate policies with the European Union amidst the ongoing Russian invasion. It advocates for a tailored Ukrainian Emissions Trading System (ETS) to balance EU integration, economic stability, and competitiveness. The

Curtailing and compensating RES can be cheaper than taking up 100% of RES electricity through investment into conventional plant park or transmission.

Different sets of RES quotas are analyzed. In the best-case scenario, 3 GW wind & solar are built and RES quotas set at 1.6 GW, enabling a RES share above 20% in 2025.

Curtailment should be considered as a regular flexibility option. It helps to mitigate the green-coal paradox and to reduce system emisions from 94 to 40 Mt CO2.

The rising cost of RE support pushes electricity prices beyond affordable level in Ukraine. Yet the revision of the established FIT scheme should be carefully designed and consider potential risks.

Analysis of curtailment as a flexibility option in the short and long run, including mitigation of the 'green-coal paradox' and comparison with hardware solutions. Overview of curtailment experiences across the world.

Based on a LCU’s Optimised Dispatch Model (ODM), we assess that the current Ukrainian power system can balance fluctuations of up to 15 GW of wind and solar (in-depth analysis).

Wind and solar installations should be distributed over the country. Policy should strive for an optimal mix of wind and solar installations in order to reduce system cost.

Based on a LCU’s Optimised Dispatch Model (ODM), we assess that the current Ukrainian power system can balance fluctuations of up to 15 GW of wind and solar (overview of results).