The Cabinet of Ministers of Ukraine, following a proposal by the Ministry of Energy, has significantly simplified the licensing procedures for the development of distributed power generation and financial incentives for businesses and citizens.

Financial instruments are now in place to support individuals and businesses in purchasing energy equipment. The Government has introduced a financial support programme for households – a 0% loan for individuals to purchase energy equipment, expanded the Affordable Loans at 5-7-9% programme to purchase energy equipment for homeowners associations, housing cooperatives, and businesses, and established special conditions for state-owned and municipal enterprises. The loan programme for homeowners associations and housing cooperatives can be used in conjunction with the GreenDIM programme.

The conditions for implementing distributed generation projects have been significantly simplified. In particular, procedures have been developed to simplify the connection of distributed generation sources to electricity, heat and gas networks, and the conditions for the location, construction and commissioning of generating facilities have been regulated. Decisions have been made to remove customs duties and value added tax on renewable energy equipment, simplify procurement procedures for small distributed generation facilities without tenders, and ease the process of approval and commissioning.

The state actively promotes the construction and placement of gas piston and gas turbine plants, including cogeneration plants. The list of documents required for their construction and placement has been significantly reduced. Today, it is possible to install generation facilities in parallel with the preparation of project documentation, and operation can be carried out without a certificate of acceptance for operation.

To prepare for the 2024-2025 heating season, state-owned and municipal enterprises are allowed to purchase generation equipment without holding tenders. An additional safeguard is the requirement to report in the Prozorro electronic system.

The Government has established prompt and reliable informing of the population and business about the current situation in the energy sector and opportunities to overcome the energy deficit. In particular, the Government’s telephone line “STRUM” (15-49) is actively operating, providing advice and the opportunity to report abuses by grid operators during the connection of generating facilities.

In addition, Ukraine has introduced the practice of pilot auctions for the allocation of support quotas for renewable energy producers. Comprehensive assistance is being provided to develop and attract investment in the construction of new generating capacities, energy storage facilities and grid infrastructure.

The Ministry of Energy has approved the Roadmap for the development of smart grids, which envisages the introduction of automation and digital solutions at all levels of the power system. Negotiations are underway with partners to invest in modern energy storage systems.