FEATURES OF MANAGING FOREIGN ECONOMIC ACTIVITIES OF ELECTRIC POWER ENTERPRISES IN THE CONDITIONS OF INTEGRATION INTO THE EU ENERGY SYSTEM

Abstract

The paper examines the role and significance of the electric power industry as a key factor influencing a country's economic development. It focuses on aspects such as energy security, integration into the European energy market, enhancement of economic efficiency, attraction of foreign investments, reduction of energy dependence, and stimulation of technical modernisation. The study defines the scope of foreign economic activity (FEA) for energy enterprises, detailing the types of operations conducted by business entities within the electricity sector. It analyses the specific characteristics of electricity as a commodity – such as its non-storability, immediate consumption, high sensitivity to time and demand, and transportation constraints – and the unique nature of relationships among market participants: Central executive authorities, Wholesale market entities, including producers and electricity sellers, Domestic and foreign electricity consumers. The paper also analyses annual electricity production, consumption, export, and import volumes, as well as the sources of electricity generation in Ukraine. It establishes that the National Power Company "Ukrenergo" 's strategic goal in foreign economic activity is integrating Ukraine's Unified Energy System (UES) into the European energy system ENTSO-E. This integration entails technical, regulatory, and institutional synchronisation with European standards and electricity markets, thereby enhancing electricity export/import capacity and mutually beneficial exchanges (flows). Such integration promotes the convergence of electricity markets across different countries and ensures the reliability of energy supply within Ukraine's UES. Based on the conducted analysis, the study identifies key features of managing foreign economic activity in the electricity sector, shaped by the strategic importance of the field, its high degree of regulation, technical complexity, product specificity, and the nature of interactions among participants. Considering its specific characteristics, practical recommendations are proposed for business entities engaged in foreign economic activities within the energy sector.