Last year, for the first time in the history of the country, Ukraine made it onto Ernst &
Young’s Renewable Energy country Attractiveness Index. The East European country was
listed 32nd, thus indicating a lucrative and rapidly emerging renewable energy market.
Considering the Ukrainian feed-in tariffs on solar energy rank higher than in any other European
state, as well as significant solar tariff cuts in Germany, this could be a good sign for German
enterprises already in search of alternative solutions. However, implementing a solar project in
Ukraine implies a number of legal matters to be tackled.

To successfully carry out a solar energy project in Ukraine, six major consequent steps
have to be taken. First of all, it is crucial to settle all land-related issues. If a land plot intended
for facilities construction is state or municipally owned, an application for land allocation can be
filed after a Ukrainian company is established. If the land plot falls under the category of ‘land
plots for industrial use: energy industry’, no application is required. If the land plot is registered
in any other category, an application for reallocation, i.e. changing the purpose of the land, has
to be filed.

Building permit within ten working days

Once the land use is legalized, construction of solar power facilities can be launched
with their further coming on line. At this stage the potential energy producer has to apply for socalled
city planning conditions and restrictions and engineering tasks. These provide the data
as to what can be constructed on the land plot, and whether any restrictions need to be taken
into account. Next, a building permit has to be obtained. This should normally take ten working
days from application. With the building permit granted, actual construction and deployment of
the solar power facility can be focused on. It is also necessary to register the deed of ownership
to solar power facilities.

The next step is applying for a licence for energy production, which is issued by the
National Electricity Regulatory Commission of Ukraine (NERC). The decision as to the licence
is provided within 30 calendar days from application. The licence is issued for a minimum three
years and is non-transferable. It should be taken into account that a licence can be issued only
after solar power facilities are constructed and put into operation. Otherwise, NERC is likely to
decline the application, justifying their decision by citing insufficient financing or capacity.

Connection to the grid based on an agreement presents the fourth step. Ukrainian grid
operators cannot refuse connection to providers of renewable energy with a capacity up to 10
MW. However, it is strongly recommended to contact the grid operator prior to solar plant
construction in order to discuss connection to the grid and to establish technical tasks.

Regulatory Commission and licensing procedures

This leads us to the next step: obtaining the feed-in tariff, which is possible only after the
solar power facility is constructed and deployed and the licence granted. The decision as to
tariff level is made by the NERC at a public session of the Commission within 45 calendar days
from application. The ‘Green’ tariff remains in effect till 1 January 2030. Feed-in tariffs for
providers of solar energy are as follows: 0.4653 EUR for solar energy produced by surface
facilities; 0.4265 EUR for solar energy produced by roof facilities with capacity up to 100 kW;
and 0.4459 EUR for roof facilities with capacity over 100 kW.

Finally, the last step is selling solar energy produced. Electricity can be sold directly to
end consumers. For electricity to be traded on the wholesale market, the producer has to apply
to the ‘Energorynok’ state enterprise. The electricity provider’s application to join the association
of wholesale marketers is considered within 30 days. In the event of a positive decision, an
agreement between the applicant and members of the association of wholesale marketers is
concluded within the following 28 days. Once the agreement is signed, electricity can be sold
on the wholesale market at the lucrative price of the feed-in tariff.

Igor Dykunskyy, LL.M. (Augsburg)
Rechtsanwalt, Partner
igor.dykunskyy@bnt.eu

bnt attorneys-at-law
Yakira Str. 13
UA - 04119 Kiew, Ukraine
T +380 44 235 06 56
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