Obstacles to the formation of a common electricity market of the Eurasian Economic Union

TLDR: In this paper, the authors study the degree of readiness of national energy systems for integration and to identify problems that impede the formation of the Common Electricity Market of the Eurasian Economic Union.

Abstract: The current state of the economy and society is influenced by the global integration processes taking place in Eurasia - the creation of the Eurasian Economic Union, which should unite the markets for resources, goods and capital of the member states of the Eurasian Economic Union. One of the aspects of this process is the creation of a unified electricity market, which ensures free flow of electrical energy, free pricing and competition in the power industry. The purpose of this study is to study the degree of readiness of national energy systems for integration and to identify problems that impede the formation of the Common Electricity Market of the Eurasian Economic Union. The methods used were statistical analysis tools, a graphical method, comparisons and descriptions. The study was carried out on the basis of the use of information provided in the open access of the Eurasian Economic Union, national statistical services and energy companies. The authors have identified the main goals and objectives, as well as the requirements and expected results of the creation of the Common Electricity Market. As a result of the analysis of national power systems, a number of problems were identified that impede their convergence, including inconsistencies in the scale of production, various pricing mechanisms and electricity price regulation, differences in the energy balance of the Eurasian Economic Union member states, different levels of electricity prices, and a particular opinion Of the Republic of Belarus to the concept of market formation and the lack of unified borders of Armenia with other participating countries Union. The findings of the study indicate that by the stated date, namely July 1, 2019, the Common Electricity Market will most likely not be created for the reasons stated. To solve the identified problems, the authors propose several tools, one of the most important among them is the mechanism of regulatory and legal regulation of electricity markets at the national and supranational levels. Also, according to the authors, in the integration processes in the framework of the Eurasian Economic Union should consider the world experience of such political and economic associations.