07.09.2026
Starting from 1 September, electricity grid connection rules in Ukraine have changed, bringing new opportunities for the development of generation, energy storage systems, and large consumers. The updated regulations provide for the distinction between guaranteed and non-guaranteed capacity, introduce mechanisms for flexible and shared connections, and clarify the rules for combining generation with energy storage facilities.
For the energy market, operating amidst network capacity constraints and persistent challenges to the power system, these changes are of particular importance. They can pave the way for implementing new projects in areas where traditional connection would require considerable time and additional grid reinforcements. At the same time, non-guaranteed capacity entails new risks: its use may be subject to curtailment depending on the operating mode of the relevant energy node.
What exactly has changed for RES producers, energy storage operators, consumers, and investors? How will flexible connection work, who can benefit from shared grid use, and what risks should be factored into planning a new energy project?
Olena Sichkovska-Chornobyl, Counsel at AVELLUM, answered these and other practical questions for Energy Club, detailing the key innovations and their practical implications for energy market participants.
On 1 September 2026, amendments to the Transmission System Code, the Distribution Systems Code, the Commercial Metering of Electricity Code, the Methodology for Setting Connection Fees, the Retail Electricity Market Rules, and the Procedure for the Sale of Electricity by Active Consumers entered into force, except for certain provisions of the Methodology (Procedure) for Setting Connection Fees, which enter into force on 1 October 2026.
These amendments implement Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Improving the Functioning of Energy Markets, Competitive Conditions for the Production of Electricity from Alternative Energy Sources and Strengthening Energy Sustainability” No. 4777-IX, dated 10 February 2026.
The amendments affect producers of electricity using renewable energy sources, operators of energy storage facilities (ESFs), consumers, and other customers of grid connection services who connect to the electricity networks under the Transmission System Code (TSC) and the Distribution Systems Code (DSC, together the “Code”).
Under the amendments, permitted (contracted) capacity is now divided into:
The following are also determined separately:
The connection point passport, executed between the system operator and the producer, must now separately reflect guaranteed and non-guaranteed intake capacity, as well as guaranteed and non-guaranteed output capacity.
For investors, this means that for the purposes of connection to electric power networks, it is necessary to assess not only the total capacity of the facility, but also the volume of capacity that can be used continuously and the volume for which restrictions are allowed.
Additionally, amendments to the Methodology for Setting Connection Fees now take into account the separate definition of intake and output capacity, allowing projects to be planned with fuller regard to their specific features. Where flexible connection is applied, the connection fee also takes into account whether the relevant capacity is guaranteed or non-guaranteed.
Under the amendments, a customer of connection services with a capacity exceeding 1 megawatt (MW) may apply to the operator for flexible connection provided that the technical conditions for connection have entered into force and based on developed project documentation.
Flexible connection may be applied:
The following conditions must be met for its application:
If the requirements of the Code are met, the network operator is obliged to amend the technical conditions for flexible connection. The transmission system operator (TSO) may only refuse if the operation of the new automation (taking into account already connected users and previously issued technical conditions) would breach the Code’s requirements regarding the system remaining in a pre-emergency mode or reserve replacement process. The distribution system operator (DSO) has no right to refuse if the formal requirements for the installation are met.
Within 10 calendar days of receiving the application, the operator must provide:
Therefore, flexible connection is formalized by amending the connection agreement and technical conditions, rather than by entering into a separate special agreement on flexible connection.
The use of non-guaranteed capacity depends on the operating mode of the relevant energy node and the limits of its operational security.
The mandatory automation for the flexible connection must:
Where several users with flexible connections share a single energy node, the order of restrictions is determined by the date of the agreement: the most recently connected users are restricted first.
The operator is not liable for restrictions on electrical capacity output or intake within the permitted non-guaranteed capacity. Moreover, restrictions or disconnection within the non-guaranteed capacity due to operational security limits being exceeded are not considered as a breach of the reliability or continuity of electricity transmission.
At the same time, the operator must notify the user of planned works that may cause such restrictions no later than 3 calendar days before the start date of such works.
For a prospective electricity network user, this means it is necessary to assess the potential scope of restrictions, the order in which they would be applied, and their impact on the project’s profitability and payback period.
The amendments clarify the rules for connecting a customer’s electrical installations to the internal power supply networks of another user, other than a distribution system operator.
This mechanism involves:
Internationally, this model of shared use of a network connection is known as “cable pooling”, although the Code itself does not use this term.
For connection to the TSO’s networks, the following may be connected to a main user’s power networks:
Implementing such a connection requires executing:
The TSO must provide the draft tripartite agreement and the technical conditions within 10 business days, starting from the next business day following registration of the application.
The agreement between the main user and the sub-user must define the following, among other things:
The main user bears liability for exceeding the permitted contracted capacity at the relevant distribution or transmission point.
If the sub-user changes its mode of electricity output or intake, the technical conditions may require additional works to be performed in the operator’s network.
The key differences for shared connection when connecting to a DSO’s networks are as follows:
A sub-user’s connection to the networks of a main user that is itself connected to the TSO’s networks exempts the sub-user only from the EUR 10 per 1 kW of ordered capacity fee. This does not make the connection entirely free of charge — the sub-user still pays for technical measures, commercial metering, and other contractual costs.
Given that the connection fee for DSO networks is calculated under a different mechanism, the “exemption from EUR 10/kW” does not apply in that case.
An ESF operator has the right to install and use generating units, subject to two conditions:
It is separately provided that a producer of electricity connecting the ESF to its own internal power networks must ensure compliance with the contracted intake and output capacity.
Installing a generating unit or an ESF does not increase the permitted capacity at the connection point.
Under the amendments, within 10 business days from the date the technical conditions are issued, the TSO (which is not provided for the DSO) must additionally provide the customer with information on:
Customers connected to the TSO/DSO may also apply to the State Energy Market Supervision Inspectorate of Ukraine for a ruling on whether the technical conditions are justified.
After receiving this finding, the TSO/DSO must, within 3 business days, notify the authorized body of the measures taken to comply with it, or submit reasoned objections.
The amendments oblige the TSO to review the terms of agreements for compliance with the updated Code within five business days of receiving the request. The resolution does not provide for the automatic amendment of all existing agreements.
At the same time, the amendments do not stipulate a deadline by which the terms of the agreements must be reviewed.
– Does a flexible connection guarantee the ability to use the entire ordered capacity?
– No. The capacity ordered for connection may consist of guaranteed and non-guaranteed parts. Non-guaranteed capacity may be restricted depending on the operating mode of the energy node and the terms of the Code.
– Is a flexible connection applied temporarily?
– Yes. A temporary flexible connection is permitted while the technical measures required to obtain the full guaranteed capacity are being completed.
– Can the operator refuse to apply a flexible connection?
– If the conditions established by the Code are met, the operator cannot refuse to amend the technical conditions, except in cases expressly provided for in the Code.
– Does the operator compensate for losses arising from restrictions on non-guaranteed capacity?
– The Code provides that the operator bears no liability for restrictions on output or intake within the permitted non-guaranteed capacity.
– Is a sub-user’s connection free of charge?
– No. Only a part of the connection fee of EUR 10 per 1 kW of ordered capacity is waived, and only in the case of connection to the TSO’s network. All other costs remain. This exemption does not apply to connection to the DSO’s networks.
– Can a sub-user connect without agreeing terms with the main user?
– No. For connection to the TSO’s networks, the mechanism requires a tripartite connection agreement and a separate agreement between the main user and the sub-user on the use of the networks. For connection to the DSO’s networks, bilateral agreements are in place between the customer (i.e. the main user) and the DSO, between the customer (i.e. the sub-user) and the DSO, and between the main user and the sub-user.
– Does installing an ESF or a generating unit increase the capacity of the connection point?
– No. The total electricity intake and output must remain within the relevant permitted contracted capacity.
We recommend as follows:
The new rules increase the number of connection options available to RES electricity producers, ESF operators, and other users of the transmission and distribution systems, particularly in conditions of limited electricity network capacity.
At the same time, the implementation of relevant projects will depend on the availability of a capacity reserve, properly formalised contractual relations, compliance with technical requirements, and consideration of the risk of non-guaranteed capacity restrictions.
