15.10.2025
On October 9, the Energy Club’s international forum, “Balancing Europe’s Energy System: Challenges, Solutions, and Prospects,” was held in Vienna, where leading European and Ukrainian experts, regulators, investors, and innovators discussed future energy market models and ways to strengthen grid stability.
One of the key speeches in the panel discussion “Current Challenges in Balancing Europe’s Energy System” was delivered by Jasmina Trhulj, Head of the Electricity Unit at the Energy Community Secretariat. Her address was dedicated to the integration of the energy markets of the Contracting Parties with the EU market, the challenges of regulatory alignment, and Ukraine’s role in this process.
Integration as the Basis for Balancing
At the beginning of her speech, Jasmina Trhulj emphasized that for the Energy Community Secretariat, the issue of balancing Europe’s energy system primarily means the integration of the Contracting Parties’ markets with the European Union’s market.
“This is the key topic we need to discuss, as our markets are small. They need integration to ensure liquidity, stability, and competitiveness,” she noted. Ms. Trhulj stressed that the examples of Ukraine and Moldova clearly demonstrate how critical integration is for security of supply and for maintaining system operation during crises.
“We have seen how important this integration has been to keep the lights on and ensure energy security,” said the Head of the Electricity Unit at the Energy Community Secretariat.
20 Years of Energy Community Development: From Zero to Functional Markets
The Energy Community has celebrated its 20th anniversary. During this time, the member countries have progressed from a complete absence of market mechanisms to the creation of forward, intraday, and balancing markets.
“We started from a complete lack of a market, and today, most Contracting Parties have functional intraday and balancing segments. The next task is to fully utilize their potential,” emphasized Jasmina Trhulj.
However, she noted that new challenges are emerging due to the rapid growth of renewable energy sources. “We are no longer a region based solely on fossil fuels. Today, on average, we have about 50% of our energy from renewable sources, which is a great achievement. But it brings new challenges—especially in terms of balancing the system frequency at 50 Hz,” she noted.
Market Restrictions—The Main Barrier to Development
Jasmina Trhulj pointed out that the biggest challenge for the Contracting Parties, including Ukraine, remains price caps, excessive public service obligations, and market distortions that prevent the formation of real price signals.
“We are preparing our annual implementation report, and it will show that in most countries, restrictions that hinder the proper functioning of the market are still in place. Without their removal, investors do not receive the correct price signals, which are crucial for attracting capital,” she explained.
The speaker emphasized that the Energy Community countries are economically weaker than EU members, so they need transparent market rules to stimulate investment in generation and infrastructure.
Not Just Infrastructure, but a New Energy Market Philosophy
According to Ms. Trhulj, it is important not only to build new markets but also to form a new architecture for energy interaction, which includes:
“The future lies in a model where the consumer is an active market participant, not a passive recipient of services,” she stressed.
Legal Harmonization with the EU—A Critical Stage
A separate part of Jasmina Trhulj’s speech was dedicated to aligning the legal frameworks between the Contracting Parties and the European Union.
“We have the Electricity Integration Package, which was adopted for the Energy Community. The states must transpose it into their national legislation. The deadline was December 31, 2023, and so far, only Serbia has fully complied,” she reported.
According to Ms. Trhulj, Ukraine is actively working on harmonizing its legislation together with the Ukrainian parliamentary committee on energy. “We hope that by the end of the year, amendments to the law on the electricity market will be adopted, which will open the way for Ukraine’s full integration with the EU market,” the expert noted.
Harmonization is a mandatory condition for joining European balancing platforms and common day-ahead and intraday markets.
Ukraine: Simultaneous Recovery and Integration
The speaker paid special attention to the Ukrainian context—the reconstruction of energy infrastructure after destruction and the development of balancing capacities.
“We see progress in the procurement of new balancing capacities. Ukraine recently held tenders for almost 300 megawatts. This is an important step towards stability and integration with the European market,” she said.
At the same time, the Energy Community Secretariat supports Ukraine through the Ukraine Energy Support Fund, which is aimed at restoring destroyed infrastructure and developing new balancing resources.
Key Tasks: Harmonization, Investment, Consumer Participation
In conclusion, Jasmina Trhulj identified two main tasks for Ukraine and other Contracting Parties:
“We have a unique opportunity to become part of the European market even before joining the EU. It is not an easy path, but it is entirely achievable. And we are ready to help all countries, including Ukraine, to take this step,” concluded the Head of the Electricity Unit at the Energy Community Secretariat.
Reference: The Energy Community Secretariat is an international organization created to integrate the energy markets of the countries of South-Eastern Europe, Ukraine, Moldova, Georgia, and others with the EU market. In 2024, the Community celebrated its 20th anniversary.
