Integration into ENTSO-E. Key results over two years.

1. K E Y R E S U LT S
OV E R T W O Y E A R S

2. Agreement with ENTSO-E
July 7, 2017
On June 28, 2017 in Brussels
Agreement on the Conditions for Future
Interconnection of Power System of Ukraine with
Power System of Continental Europe was signed
Agreement
took effect
The agreement contains:
1. Catalogue of Measures;
2. List of necessary additional researches;
3. Road Map
To date, the Agreement has been
approved by 28 European system
operators of the ENTSO-E
“Continental Europe” Regional Group
The deadline for the implementation of all activities of the
Catalogue of Measures is 5 years. Another year is needed to work in
an isolated mode (physically disconnected from the power systems of
the Russian Federation, Belarus and ENTSO-E).
Under the agreement, Ukrenergo undertakes to implement the
technical provisions contained in the catalogue of measures, and to
check the island mode of operation of the integrated power system.
The implementation of all activities and operation in an island
mode should be a condition for a positive decision of ENTSO-E to
switch to parallel work with Ukraine and Moldova in 2023.
28
європейських
ОСП

3. Sustainable
Development Strategy
«Ukraine 2020»
(approved by the
Presidential Decree on
January 12, 2015)
Paragraph 3. Road map and
priorities of the Strategy
implementation
Association Agreement
between the European
Union and its Member
States, on the one hand,
and Ukraine, on the other
Section V. Economic and
sectoral cooperation
Memorandum of
Understanding on a
Strategic Energy
Partnership
between Ukraine and
the EU (signed in
Brussels on 24.11.2016)
Paragraph 7.
Implementation and
reporting
Energy Strategy of
Ukraine until 2035
(approved by
Government Decree
No.605 on August 18,
2017)
Part 2. Goals and priorities of
the Energy Strategy
Part 3. Stages and main
measures of the
implementation of the
Strategy
Strategy
«Ukraine 2020»
Association
Agreement
Memorandum
Energy
Strategy
Integration into ENTSO-E in Ukraine’s strategic documents
Government’s
Action Plan
Action Plan for
synchronisation of the
Integrated power system
of Ukraine with the
association of power
systems of the EU
Member States
(approved by Cabinet
Decree No. 1097-р of
27.12.2018)

4. Decree of the Cabinet №1097-r
“On approving the plan of action on synchronisation of the integrated power system of Ukraine with the association of the power
systems of of the EU member states”
Approved on 27 December 2018
KEY MEASURES OF THE PLAN ENVISAGE
Certification of the transmission system operator MECI/ NEURC/ Ukrenergo 2018
Setting up a joint control unit for Ukraine’s IPS and the PS of Moldova MECI/ Ukrenergo
2019
Research of the established operating modes, static and dynamic
stability of the IPS of Ukraine, including frequency testing and control
systems of active frequency and excitation regulation
MECI/NEURC/ Ukrenergo/ SE NNEGC Energoatom /
PJSC Ukrhydroenergo/generating companies of thermal power plants
2019-2020
Organization of communication channels for technological
management of IPS Ukraine
MECI/NEURC/ Ukrenergo
2020
Upgrade of software and hardware for dispatch control and data
collection
MECI/NEURC/ Ukrenergo
2021
Construction of overhead lines and renewal of operation of interstate
overhead lines
MECI/NEURC/ Ukrenergo
2021-2022
Switch to working in island mode with power systems of countries
outside of ENTSO-E
MECI/ Ukrenergo
2022
Attracting international technical assistance
МЗС / MECI/Ukrenergo/ Ministry of Economic Development and
Trade
ongoing
C o n t a i n s o p e ra t i o n a l a n d t e c h n i c a l m e a s u r e s ( 1 9 m e a s u r e s )
- done - in progress - planned - not done

5. For ENTSO-E
For the IPS
of Ukraine
Reduction of the active members' primary
reserve shares due to the synergy (by± 140-
160 MW, ratably)
Easier to control the energy system in peak
loads (due to non-coincidence of the
Ukrainian and European peak hours)
Improved grid stability (by adding inertia to
the ENTSO-E grid)
Strengthened interconnections between the
Northern and Southern parts of Continental
Europe’s grid
Significant increase of stability and flexibility of
Ukraine’s power system
Possibility to receive emergency assistance from the
power systems of ENTSO-E member countries
Increase in electricity trade with Europe - from
today's 4-5 billion kW*h to 18-20 billion kW*h
Reduced dependence on Russia
Benefits of integration of the IPS of Ukraine into ENTSO-E

6. • Generation readiness to ensure reserves
and automatic voltage control
• Development of communication channels for
dispatching operations
• Additional studies on the static and dynamic
stability Implementation of the Operation
Handbook ENTSO-E
Grid development 130 m EUR
130 m EUR
92 m EUR
5 m EUR
138
m EUR
IFI funding
Cost of synchronization
TOTAL
cost
357m EUR
p r e l i m i n a r y e s t i m a t e s

7. Main components of the synchronisation process
Available reserves of primary,
secondary and tertiary controls of
frequency and active power, sufficient
for the operation of the IPS of Ukraine
in synchronous mode with the
European power system, and in the
island mode
Ensuring that Ukraine's power system is
operated in accordance with the
standards followed by transmission
system operators within ENTSO-E
(Operation Handbook, Synchronous
Area Framework Agreement)
Harmonisation of the Ukrainian
legislation in electricity to comply with
the European law; compliance with
market standards and certification of
the national transmission system
operator
Ke y re q u i re m e n t s fo r f u t u re p a ra l l e l w o r k w i t h t h e E N T S O - E C o n t i n e n t a l
E u r o p e P o w e r S y s t e m
|1| |2| |3|

8. Frequency control reserves|1|
PRIMARYMW As part of ENTSO-E In island mode Currently possible
Potential for export of
reserves
ПЕРВИННИЙ ±160* ±1000** ±320 ±160
SECONDARY
+1000
-420
+1000
-420
+1000***
-420
-
TERTIARY
+1000
-420
+1000
-420
+2000
-420
+1000
* volume reviewed annually by the Forum of European TSOs and is determined on the basis of equity
** based on the results of modeling, can be reduced (possibly up to 750-900 MW)
*** including connected to SCADA / AGC +600 MW and -350 MW (HPP of the Dnipro cascade)
• To calculate the dynamic and static stability of the power system, it is necessary to create a mathematical model
• Mathematical model of the power system is created based on the results of testing the power units
• Calculations should be made by the Consortium of ENTSO-E TSOs based on the Service Contract
• The ENTSO-E PG Ukraine/Moldova informed Ukrenergo that the Consortium Agreement was signed and entered into force on
April 30, 2019.
• Together with the ENTSO-E PG Ukraine/Moldova, the Service Contract has been drafted, incorporating the requirements of
the World Bank
• Stakeholders' amendments and comments made at the meetings of the ENTSO-E PG Ukraine/Moldova, have been introduced
• Final version of the Service Contract with annexes from the ENTSO-E Consortium was sent to the World Bank for approval
P r o v i d i n g a d d i t i o n a l s t u d i e s :

9. As part of building a mathematical model of the power system
for further calculation of its dynamic stability, power units at
TPPs, CHPs and HPPs were tested for automatic control of
frequency and excitation.
• PG Ukraine/Moldova agreed on the list of power units to be tested
• Framework test programmes developed and agreed upon with Ukraine/Moldova PG
• Negotiations with USAID held, funding for tests secured, and test consultant selected -
USEA (United States Energy Association)
• All power plants on the list have been visited in order to obtain as much data as possible
to develop procedures and test programmes, the need was identified to involve the
developers of equipment and use additional testing equipment
• General and block testing procedures have been developed and agreed upon with PG
Ukraine/Moldova;
• Test schedule of power units has been developed and agreed upon with all test
participants
• Tests were conducted on 11 power units of 8 power plants, including 9 tests of automatic
excitation control and 7 tests of frequency and active power
Testing started on January 22, 2019,
and was completed on April 26, 2019
NEXT STEPS:
• Systematisation of test results and, after
the conclusion of the Service Contract
with the Consortium of ENTSO-E TSOs,
transfer of data to the Consortium to be
used in the calculations
• Together with the PG Ukraine/Moldova,
conducting analysis of the possibility of
using start-up and pre-commissioning
tests of power generation units'
excitation systems of NPPs. Testing
excitation systems of power units at
NPPs, if necessary
Frequency control reserves |1| testing of power units
11power units
16tests

10. Ensuring that Ukraine's IPS is operated in accordance with the standards followed by
transmission system operators in ENTSO-E |2|
Agreements on emergency supply
with neighboring transmission
system operators (Poland,
Slovakia) drafted
NEXT STEPS:
Agreeing upon and signing of
emergency supply agreements
Involving Ukrenergo in planning
and data exchange processes in
XML format (year, month, week,
day)
NEXT STEPS:
Adapting the system of
operational planning according to
ENTSO-E requirements (year,
month, week (daily) in XML format
Compliance with ENTSO-E requirements
to carry out 24-hour forecasting
calculations in automated mode (for the
power system of "Burshtyn TPP Island"
carried out using the updated software
DAKAR)
NEXT STEPS:
Compliance with ENTSO-E requirements
to carry out in automated mode the
calculations of forecasting regimes for the
IPS of Ukraine in Power Factory format
Regular training of dispatchers is
arranged. Amendments to the
programmes of technical training for
dispatchers and training programmes for
newly-hired managers. Joint training with
the Moldovan TSO
NEXT STEPS:
Setting up a training centre for
dispatchers

11. during 2018
Drafting, approval and signing of the
operation agreement establishing a
control unit composed of power systems
of Ukraine and the Republic of Moldova,
and annexes thereto
2018 – 2019
In accordance with ENTSO-E requirements,
conducting joint training of dispatch personnel
SE NPC Ukrenergo and SE Moldelectrica in the
format of joint emergency exercises and
presentation of works by operational dispatch
of power systems of the Republic of Moldova
and Ukraine
after 2019
Monitoring the implementation
of the processes described in
the annexes to the operation
agreement
Ensuring that Ukraine's IPS is operated in accordance with the standards followed by
TSOs in ENTSO|2|
On December 10, 2018, Moldelectrica signed an agreement to create a joint Ukraine-Moldova control unit, with
annexes

12. Harmonisation of the Ukrainian electricity law to
comply with the European law; compliance with
market standards and certification of the national
TSO|3|
In the course of aligning with market standards, Ukrenergo undertakes to
develop:
Transmission System Code, Commercial Metering Code
Market Rules
Draft Connection Fee Methodology
Rules for limitation management and Procedure for cross-border
capacity allocation
Launch of a new model of the electricity market
Ukrenergo’s certification as a transmission system operator
- accomplished - not accomplished

13. International support
Over the course of two years, Ukrenergo has managed to form a strong international coalition to support the integration of Ukraine's IPS into the
ENTSO-E power system.
Constructive relations with numerous European TSOs and international partners enable the implementation of joint projects:
Project for Support to the Integration of
Ukraine's Power System with the Continental
Europe Synchronous Area (CESA)
Goal of the project: identification of the following priority investment projects aimed
at promoting synchronisation with the Continental Europe Synchronous Area (CESA)
and improving the transmission system efficiency.
On 15 August 2018 KfW reported that the Application for Grant Funding was approved
by the Council of the EU Neighborhood Investment Facility (NIF).
Cooperation with the US within the framework
of the US-Ukraine Strategic Energy Dialogue
In the letter of 13 February 2019 to the Minister of Foreign Affairs of Ukraine Pavlo
Klimkin, US Deputy Secretary of Energy Dan Brouillette supported ongoing and new
cooperation, in particular, related to the enhancement of physical and cyber security
and support for ENTSO-E integration.
Consultations on the first visit of US experts to Ukrenergo on these initiatives are
underway.
Testing of power units using USAID grant
funding
Goal of the project: Testing of TPPs, CHPPs and HPSs on frequency and excitation
control to look into the possibility of synchronous operation of power systems of
Ukraine and Moldova with the power system of ENTSO-E Continental Europe.
Tests on 11 power units of TPPs, CHPPs and HPPs were started on January 22, 2019
and were completed on April 26, 2019.

14. International support
Project for RES Integration in
Ukraine"
Goal of the project: to develop new approaches to the operation of the power system,
mechanisms for determining the necessary strategic reserves and ensuring the flexibility of the
power system, determining its optimal configuration, etc.
The decision of the Federal Ministry of Economics and Energy of Germany is to be finalised to
extend a corresponding grant to the German Energy Agency (DENA)
Project for Consulting Services on
ENTSO-E Integration under the
Second Power Transmission Project
(PTP-2)
Goal of the project: preparation for signing agreements between TSOs, conducting three training
workshops on following the scheduling rules adopted by the ENTSO-E, and helping to develop the
Terms of Reference to expand the functionality of existing software for analyzing and modeling the
power system for successful synchronisation with the ENTSO -E.
On 5 April 2018, Ukrenergo signed a contract for consulting service related to the integration into
ENTSO-E with Elia Group, funded by the World Bank.
Project for construction of energy
storage capacities
Goal of the project: carrying out the relevant study on the testing of balancing methods of solar
and wind power plants, whose share in the IPS of Ukraine is rapidly increasing.
At the end of December 2018, the Ministry of Economy and Finance of France approved the decision to
provide a grant to RTE to carry out a study within the framework of the Project for the construction of
energy storage capacities in the Integrated Power System of Ukraine.

15. ENTSO-E Cooperation Beyond Membership Programme
On 13 February, in Brussels, an Agreement on the participation of
Ukrenergo in the ENTSO-E Cooperation Beyond Membership
Programme for 2019-2021 was signed during a meeting with
ENTSO-E Secretary-General Laurent Schmitt
Cooperation Beyond Membership Programme is a unique type of
partnership between ENTSO-E and Ukrenergo (in accordance with the
recommendations for cooperation under Regulation (EC) No. 714/2009
between ENTSO-E and the TSOs non-members of the network)
The goal is to create the framework for receiving the expertise and the
best practices on the most pressing issues for the company as regards
the integration into ENTSO-E
The Programme envisages:
1. Workshops suited to Ukrenergo needs
2. 10-day field trip of Ukrenergo employees to the
ENTSO-E Secretariat
3. Long-tern internship of Ukrenergo employees in the
ENTSO-E Secretariat
First Introductory Workshop with the
participation of ENTSO-E Secretary General, Mr
Laurent Schmitt, on ENTSO-Е’s key policies,
processes, platforms, etc., will take place on 29
May 2019 at Ukrenergo

16. Key findings
As never before, Ukraine has a historic opportunity to make within a short period a strategic step to enhance its
own energy security and a full-scale integration into the European energy market.
Ukrenergo plays a major role in the process of integration of the IPS of Ukraine into the ENTSO-E Power System.
However, ENTSO-E integration should be a common goal for all market participants and key stakeholders.
Thus, achieving a common goal will require:
1. Modernisation of the power units at the scale necessary to ensure the frequency and active power
control in the isolated mode of operation of Ukraine's IPS.
Responsible entities are generating companies
2. Creation of a detailed plan to prepare for the power system’s operation in an isolated mode
for further approval by the NSDC of Ukraine
Responsible body is Ukrenergo
3. Achieve full compliance of Ukrainian electricity legislation with the European law
Responsible bodies are the Verkhovna Rada, the Cabinet of Ministers of Ukraine, and NEURC
4. Introduction of a new model of the electricity market
Responsible bodies are the Verkhovna Rada, the Cabinet of Ministers, NEURC, Ukrenergo,
Energorynok, market participants
5. Certification of SE NPC Ukrenergo as a transmission system operator as soon as possible
to allow to obtain the observer status in the ENTSO-E
Responsible bodies are NEURC, the Ministry of Finance, Ukrenergo
6. Proper financing of Ukrenergo's activities related to ENTSO-E integration
Responsible body is NEURC
7. Consolidation of foreign policy effortss related to ENTSO-E integration
Responsible bodies are the Ministry of Foreign Affairs,
the Ministry of Economic Development and Trade