<\/p>\n
The Verkhovna Rada is currently preparing draft law No. 11392 for its second reading. The overall goal of the draft law is to simplify and expedite the process of connecting new facilities to electric, gas, heating networks, and centralized water supply networks. Such simplifications are expected to potentially attract investments in the development of energy markets and the housing and utilities sector.<\/p>\n
The European Business Association conceptually welcomes the simplification of connection conditions, as this will help accelerate the reconstruction of Ukraine’s energy sector. However, the draft law proposes both positive changes and provisions that businesses suggest need further refinement.<\/p>\n
Among the positive changes, the draft law allows, under certain conditions, the extension of construction completion deadlines for up to six years for facilities that were not completed due to war-related risks. Nevertheless, businesses note that even such an extension may not be sufficient. The draft law also includes positive provisions regarding the possibility of reserving renewable energy capacities and some aspects of facility operation.<\/p>\n
At the same time, businesses express concerns that the positive effects of the draft law may be offset by a provision that introduces an advance payment for connecting new renewable energy facilities to the power grid, set at 10 euros per kilowatt of capacity.<\/p>\n
According to estimates from member companies of the EBA Energy Committee, connecting a single wind or solar plant with a capacity of, for example, 100 MW to the transmission system operator’s grid would require the customer to immediately pay an advance of 1 million euros. This amount could even exceed the cost of the connection itself (depending on the technical solutions agreed upon by the parties within a year after payment), which would tie up the developer’s working capital during wartime. Furthermore, investors are already taking risks by investing in energy projects, while advance payments do not guarantee that the investor will be able to build the project or that NEC Ukrenergo will be able to implement the connection point construction, especially considering the risk of energy infrastructure destruction.<\/p>\n
The establishment of a fixed fee based on the euro in conditions of currency fluctuations is a concern for investors, as the cost of the advance payment could significantly increase if the exchange rate changes. Due to this additional financial burden, investors may suspend the deployment of several renewable energy projects, which were meant to lay the foundation for “green” reconstruction.<\/p>\n
Given the ongoing shelling of energy infrastructure by russia, it would be appropriate to completely abandon the idea of introducing advance payments or any other additional charges for network connections. Instead of creating additional barriers, legislation should aim to maximize the simplification and facilitation of connection procedures to accelerate the restoration and modernization of energy infrastructure.<\/p>\n
The EBA also expressed proposals that could stimulate the construction of energy storage facilities next to already-built green power stations. These and other mentioned steps, according to businesses, would enhance the resilience of Ukraine’s energy system in wartime conditions.<\/p>\n
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The Verkhovna Rada is currently preparing draft law No. 11392 for its second reading. The overall goal of the draft law is to simplify and expedite the process of connecting new facilities to electric, gas, heating networks, and centralized water supply networks. Such simplifications are expected to potentially attract investments in the development of energy […]<\/p>\n","protected":false},"author":33544,"featured_media":590270,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[4,5,22],"tags":[],"yoast_head":"\n