Energy is a basic industry for any economy and ensures the country’s security, including economic
security. The purpose of the article is to analyze the reform of the energy sector in Ukraine
for successful integration into the energy sector of the European Union. The state of the energy
industry from 2003 to 2018 is analyzed. The following main reasons for the decrease in electricity
generation in Ukraine are identified – a decrease in production volumes, the annexation of Crimea
and the anti-terrorist operation in the east of Ukraine, a decrease in the volume of energy output
from Thermal Power Plants due to aging capacities, difficulties with raw materials, low efficiency,
which, however, has a good effect on the environment due to a decrease carbon dioxide emissions.
The directions of reforming the electric power industry of Ukraine are considered in the context of
“industry-market-company”. Four electricity market models are analyzed and the new model of the
competitor’s market for electricity in Ukraine with contract market, spot market, the balancing market
is substantiated. The structure of the segments of the new electricity market and the participants
are proposed. More than half of the electricity market is provided by nuclear power, which ranks
the 5th in the world in terms of installed capacity. The analysis of the performance indicators of the
nuclear company for 2007–2019 showed significant reserves for the company’s growth, which are
being successfully implemented through strategic development projects and phased corporatization
of the company as a tool of unbundling. The main challenges of implementation a new market
model are analyzed and solutions are proposed.