Eurasian Economic Union's common electricity market expected to go online by 2025
Member of the Board (Minister) for Energy and Infrastructureof the Eurasian Economic Commission Emil Kaikiyev underlined that the creationof the common electricity market is an important stage in the advancement ofintegration processes in Eurasian space. «I would like to note that theestablishment of the market is primarily intended to enable transition tomarket-based pricing tools, including exchange trade, and ensure faircompetition,» Emil Kaikiyev said.
During the session of the Supreme Eurasian Economic Councilin May 2019 the heads of state signed an international treaty on forming thecommon electricity market of the Eurasian Economic Union. The documentstipulates the legal framework for creating the market, its operation anddevelopment. The document also mentions the bodies that will take care ofmanaging and ensuring the operation of the market. Market players andinfrastructure organizations of the market as well as ways to trade inelectricity are also mentioned.
According to Emil Kaikiyev, the creation of the common marketof electricity will allow businesses to freely choose suppliers of energyresources. In turn, it will have a positive effect on the prime cost of theirproducts. Apart from that, it will bolster energy security of the EurasianEconomic Union member states. It will help enable transparent prices forelectricity. It will contribute to steady development of the economies of theEAEU countries. «But to make it happen, we still have a lot of work to do. Wehave to continue working out the legal framework of the market,» Emil Kaikiyevnoted.
For instance, it is necessary to finish working out rules ofoperation of the common electricity market. Those are four documents, whichwill regulate trade in electricity, electricity transit via EAEU countries, thedistribution of the throughput capacity of interstate power lines, andinformation exchange on the market. The previously signed agreement on theelectricity market provides for digital trade in electricity. This is why it isnecessary to put together the relevant regulations.
TheEurasian Economic Commission intends to submit the plan on adopting all thenecessary documents for approval of the EAEU heads of state this year. Thedraft plan was agreed at a session of the Advisory Committee for ElectricityIndustry.
Membersof the committee believe that it is necessary to launch the common electricitymarket on 1 January 2024 at the latest in a simulation mode in order to testthe rules of operation and tune the digital trade system.
Apartfrom that, participants of the session discussed possible ways of implementingthe initiative of Kyrgyzstan President Sooronbay Jeenbekov concerning theestablishment of the agency to regulate the Eurasian Economic Union's commonelectricity market. The subcommittee on setting up the common electricity marketwas instructed to