Ukraine's energy regulator simplifies rules for distributed generation development – head
Ukraine's National Energy and Utilities Regulatory Commission of Ukraine (NEURC) has simplified conditions for producing electricity and heat, in particular by reducing the number of documents required to obtain a license and, in some cases, eliminating the need for a license altogether. It also eased requirements for confirming that energy facilities are ready for operation.
The corresponding resolution, "On Regulating Licensing Matters for Business Activities Related to Electricity and/or Heat Production During Martial Law," was approved at the regulator's meeting on Tuesday, which was streamed online.
"The Commission has taken another step toward developing and building distributed generation during martial law. We reduced the number of documents needed to obtain a license. Most importantly, we allowed cogeneration units to supply heat at a tariff defined by the Electricity Market Law without obtaining a separate license," NEURC Chairman Yuriy Vlasenko said.
He added that these measures are part of the regulator's ongoing efforts to strengthen Ukraine's energy independence.
Under the resolution, which takes effect on November 26, heat production on cogeneration units does not require a license if the heat is sold to a district heating company at a price defined in subparagraph 3 of paragraph 12.1 of Section XVII ("Final and Transitional Provisions") of the Electricity Market Law. This price must not exceed 50% of the single-rate tariff or 50% of the variable portion of a two-rate tariff applied to heat supplied to households and established for district heating utilities.
Businesses must simply notify the Ministry for Communities and Territories Development, the NEURC, and the local government body within three working days of starting operations.
The number of documents required to obtain a license for heat production has also been reduced.
In addition, requirements for confirming the readiness of energy facilities for operation have been simplified for gas-piston and gas-turbine installations, including cogeneration systems, and modular boiler houses with capacities of 1 MW or more. A copy of the integrated test protocol or another document stipulated by Cabinet Resolution No. 1320 of December 7, 2023, is now sufficient.
