24.07.2026
The flexible grid connection mechanism should become one of the essential tools for developing distributed generation, energy storage systems, hybrid energy facilities, and new energy infrastructure in Ukraine.
For an efficient market, it is crucial that this mechanism is not merely introduced on paper, but functions transparently, predictably, and equally for all market participants.
On the initiative of Energy Club Vice President Valerii Bezus, the Club has prepared a draft appeal to the NEURC (National Energy and Utilities Regulatory Commission) regarding the improvement of the flexible connection mechanism and the specifics of connecting energy storage systems. To refine this document, Energy Club has established a working group involving the Club’s member companies.
We spoke with Energy Club Vice President Valerii Bezus about the relevance of this initiative, key risks for investors, and the role of BESS / ESS (Energy Storage Systems) in the development of the power system.
Interviewed by Olena Karpacheva
— Mr. Bezus, why has the issue of flexible connection become so pressing right now?
— Ukraine’s power system is currently going through a very complex phase. We need to rapidly deploy new capacity, distributed generation, energy storage systems, and local energy solutions for businesses, communities, and critical infrastructure.
One of the key barriers is grid connection. In many regions, the network already faces capacity constraints, and its modernization requires time and substantial investment. Flexible connection can help bring new facilities online faster without waiting for a full grid reconstruction.
However, it is vital that this tool does not turn into a mechanism of indefinite restrictions. If the rules are non-transparent, investors simply will not be able to evaluate project risks properly.
— What is the core idea behind flexible connection?
— The idea is to enable the connection of new facilities even where the grid faces certain technical constraints, provided that the operational mode of such a facility can be flexibly regulated.
This is a smart approach if designed correctly. It allows for more efficient use of existing grid infrastructure without blocking the development of new energy projects simply because the network is not ideal.
However, flexibility must be clear and predictable. An investor needs to know what restrictions may apply, under what circumstances, for what duration, and to what extent. Without this, flexible connection will be difficult to plan and finance.
— Why is Energy Club paying special attention specifically to Energy Storage Systems (ESS)?
— ESS is neither a typical consumer nor a typical generator—it is a provider of flexibility. A storage system can both draw electricity from the grid and inject it back. It can charge when there is a surplus of electricity in the system and discharge when the system needs it.
We should not mechanically apply the same approaches to ESS as we do to conventional generation or consumption. In certain modes, a battery can place a load on the grid, while in others, it can help relieve grid congestion.
We propose defining separate parameters for electricity intake and off-take for ESS, taking into account their role in balancing, integrating renewables, and mitigating local grid constraints.
— What risks could arise if the rules for flexible connection remain vague?
— The greatest risk is uncertainty for investors and banks.
If a company does not understand how many hours per year its facility might be curbed, what the maximum restriction capacity is, or who decides on limitations and by what rules, building a bankable financial model becomes extremely difficult.
For BESS projects, this is particularly critical because their economics depend on the ability to operate effectively across multiple market segments: the balancing market, the ancillary services market, the day-ahead market, and the intraday market.
If the flexible connection mechanism lacks transparency, instead of accelerating project deployment, it may create a new barrier of uncertainty.
— What key proposals does Energy Club plan to submit to the NEURC?
— We are proposing several practical measures:
We also consider standard terms of flexible connection agreements and the path to transition to unrestricted connection following grid upgrades or expansion to be essential issues.
— Why did Energy Club decide to set up a working group to discuss this appeal?
— Because this issue impacts many market players: BESS developers, equipment manufacturers, investors, traders, consumers, EPC contractors, and facility operators.
As a business community, Energy Club is positioned to gather the practical expertise of companies and form a market-driven position rather than a purely theoretical one.
We do not want to submit a document representing only a few individuals. We want the appeal to reflect the actual issues companies face: connection processes, restrictions, bankability, market participation, technical requirements, and contracts with system operators.
That is why we created the working group “Energy Club | Flexible Connection and ESS” and invite the Club’s member companies to submit their comments and suggestions.
— What specific feedback or proposals are you expecting from companies?
— Practical ones, above all.
It is important for us to understand what practical challenges companies are already encountering while preparing BESS or distributed generation projects. For example: what a flexible connection contract should look like, what curtailment parameters must be fixed, how system operators should notify about restrictions, what data investors or banks require, and which risks could render a project economically unviable.
We also welcome specific proposals regarding ESS participation in the electricity and ancillary services markets. Flexible connection must not restrict the market rights of such facilities without a genuine technical necessity.
— What is the next step for this initiative?
— Energy Club is collecting comments and suggestions from member companies through July 27 inclusive.
Following this, we will finalize the draft appeal and submit it to the NEURC. We will also be ready to join working groups, consultations, or direct discussions with the Regulator whenever possible.
For us, it is essential that the flexible connection mechanism becomes a real tool for deploying new capacity in Ukraine rather than a mere formality. Clear, transparent, and balanced rules will help accelerate the rollout of BESS, distributed generation, and hybrid energy facilities.
Ukraine’s energy sector needs new solutions, but they must rest on a clear regulatory foundation.
