Energy Storages Law Takes Effect on 16 June 2022
On 16 June 2022, the law governing the operation of energy storages in Ukraine will take effect (the "Law").
The Law has adopted a wide definition of energy storage activities. The energy storage activities include, among other things, activities related to operation of energy storages and the reconversion by energy storages to electricity in order to:
- consume such electricity; or
- store and transmit such electricity to the grid.
Energy storages are recognized as a distinct asset class, separate from energy generation.
The Law introduces a new player on the electricity market such as an operator of the energy storages (the "Storage Operator"). The Storage Operator may arrange for the storage of electricity, sale of electricity, or provision of balancing and ancillary services.
Energy storage activities are subject to licensing by the National Commission for Regulation of Energy and Utilities (the "Regulator"), other than in respect of the following activities:
- in relation to Storage Operators, if the installed storage capacity or the reconversion of electricity does not exceed the limits specified in the license conditions for energy storage activities set out by the Regulator;
- in relation to electricity producers, if the energy stored in and then reconverted from the energy storage derives from such producers' own electricity generation and within their licensed capacity;
- in relation to producers of "green" electricity, if the energy stored in and then reconverted from the energy storage derives from such producers' own electricity generation and within their licensed capacity, provided that there is a separate commercial electricity accounting system on each energy storage; and
- in relation to energy consumers, if such energy consumer does not feed the electricity reconverted from the storage to the grid (other than internal grid).
The Regulator must approve licensing conditions for energy storage activities by 18 July 2022.
Source: Law of Ukraine № 2046-IX dated 15 February 2022 "On Amendments to Certain Laws of Ukraine on the Development of Energy Storages"; official website of the Parliament of Ukraine.
Our experts: Yevheniy Deyneko, Andriy Olenyuk, Lidiia Vatutina, Nikita Vorotnikov.
How we can help you:
- advising on regulatory matters relating to energy storages in Ukraine;
- "turnkey" legal support relating to energy storage projects in Ukraine; and
- dispute resolution matters.
Key words: energy storage; energy storage operator; electricity storage electricity reconversion.
