Kyiv, 11 November 2024 – The United Nations Development Programme (UNDP), as part of its Green Energy Recovery Programme in Ukraine, held a dedicated event to discuss strategic proposals for legislative changes in Ukraine's energy sector. Together with representatives from nearly a dozen business associations, the relevant ministry, and experts, UNDP facilitated an in-depth discussion on Draft Law No. 11392, which proposes solutions to strengthen and restore Ukraine’s energy system. This discussion was particularly relevant given that the draft law is currently being prepared for its second reading in the Ukrainian parliament.

The key proposals of the draft law “On Amending Certain Legislative Acts to Simplify Business Conditions” (No. 11392) include:

• Establishing conditions for distributed energy generation – a more secure option in times of war;
• Simplifying procedures for connecting new generation sources, particularly green energy sources;
• Regulating cable pooling to connect different types of generation (solar, wind, etc.) to a single facility to ensure an uninterrupted power supply;
• Increasing investment appeal through making changes in connection tariffs;
• Accelerating the implementation of investment projects and improving their predictability.

The event participants exchanged ideas on building effective cooperation between business and government to strengthen Ukraine’s energy sector and ensure the stable development of renewable energy sources.

Andriy Gerus, Head of the Verkhovna Rada Committee on Energy, Housing, and Utilities, stressed that Ukraine has no choice but to build distributed generation. “We see interest in this from both our partners and businesses investing in Ukrainian energy projects,” Gerus said. “Therefore, it’s essential to create a regulatory environment that allows for smooth operations, predictability, and easier investment attraction.”

Roman Shakhmatenko, UNDP’s Energy and Environment Portfolio Manager in Ukraine, emphasized that a productive dialogue between experts, government, and business would foster the transparent and effective development of policies and procedures that consider the interests of all stakeholders.

“Our joint work on this draft law demonstrates the high level of interest and involvement needed for systemic transformations,” Shakhmatenko said. “Due to the energy crisis caused by the war, Ukraine requires clear and innovative solutions that will serve as the foundation of the country’s future energy security.”

Yuliia Rybak, Manager of the UNDP Green Energy Recovery Programme in Ukraine, said she was grateful for the active participation of industry associations and organizations, noting: “It’s crucial that we’ve created a platform for professional discussion of a draft law that can truly stimulate investment in green energy, as well as support the green transition and development of distributed generation.”

Yuriy Ostapyuk, co-author of the draft law and Deputy Director of the Department – Head of the Investment Policy and Technical Development Department at NEURC, stated that the adoption of the draft law would address current industry challenges. In particular, it would help free up network capacity and improve social standards for connection, which were previously selective, he said.

Victoria Hryb, Member of the Verkhovna Rada of Ukraine Committee on Energy and Housing and Utility Services, highlighted the draft law’s key benefits for investors, such as extending the validity of technical conditions, enabling capacity reservation for wind energy, expanding connection options at a single point, and flexible commissioning conditions for installations with increased capacity.

Alongside the participants, Oleksandr Zhygaliuk, Head of the Transmission System Development Department at Ukrenergo, emphasized the importance of considering investors' perspectives and ensuring the resilience of Ukraine’s energy system.

Background:

The UNDP Green Energy Recovery Programme in Ukraine, supported by international partners, addresses Ukraine’s urgent energy needs during the ongoing attacks on critical energy infrastructure, focusing on two main priorities: urgently ensuring the continuous operation of critical energy infrastructure and production capacities, and implementing strategic actions to accelerate the transition to green energy – particularly through a decentralized energy generation system (developing safe, distributed generation). The activities of the Green Energy Recovery Programme in Ukraine are funded by the governments of Japan, Norway, Sweden, Denmark, the Republic of Korea, Belgium, Germany, and Iceland.

UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with a broad network of experts and partners in 170 countries, UNDP helps nations to build integrated, lasting solutions for people and planet.

Media enquiries:

Yuliia Samus, UNDP Ukraine Head of Communications. Email: yuliia.samus@undp.org