07.05.2026
The Energy Club Forum “Energy Decentralization 2026: Generation, Storage and Financing”, which will take place on May 26 in Kyiv as part of the International Specialized Exhibition Green EnerTech – 2026, will serve as a platform for finding effective investment models for self-generation and business energy independence.
In this context, attorney and CEO of “FEDOTOV&PARTNERS” Maksym Fedotov, in an interview with Energy Club journalist Olena Karpachova, outlined the practical aspects of launching energy projects — from legal structuring and contractual architecture to the risks of long-term contracts and regulatory restrictions that directly affect project economics.
– Mr. Maksym, if a business wants to build its own generation in 2026, what legal issues does it face even before choosing equipment and a contractor?
– First, businesses face the challenge of calculating the profitability of the operational model, as administrative restrictions on electricity prices (price caps) are in effect in Ukraine, and predicting them is quite difficult. Investors also often encounter difficulties when choosing a legal model for structuring their own energy business because the legislation allows for various operational scenarios.
– One of the most painful issues for decentralized generation is grid connection. What typical problems arise when obtaining technical specifications and interacting with distribution system operators?
– One of the main questions for investors when choosing a land plot for building generation or energy storage systems (ESS) is understanding the permitted capacity for electricity feed-in and withdrawal, as well as a transparent calculation of the connection costs.
– What mistakes are most commonly made by companies when launching solar power plants, cogeneration, gas piston units, or other distributed generation facilities?
– Most often, mistakes occur during improper business structuring between investors and when concluding equipment supply contracts, especially regarding the manufacturer’s warranty obligations. Misunderstandings also arise from improper planning of operations in specific electricity market segments and profitability calculations.
– Are the rules clear enough today for enterprises that want not only to consume their own electricity but also to sell the surplus to the grid?
– More yes than no.
– How should an energy project be properly structured if it involves several parties: the site owner, investor, equipment supplier, contractor, bank, or leasing company?
– Legal structuring of an energy project is a fairly extensive and complex issue. I can say that the question of structuring should arise even before the project launch. It is advisable to have professionals handle this. Our company has extensive experience in legal support for energy projects.
Briefly, it is necessary to structure the relationships between all participants in writing, with mandatory delineation of roles, responsibilities, project “exit” mechanisms, mechanisms for attracting additional investment, and profit distribution.
– What legal risks can arise when using PPA, ESCO models, or other forms of implementing energy projects without direct capital investment from the customer?
– Sensitive risks in PPA and ESCO contracts include improper fulfillment of long-term obligations by a party. Speaking of ESCO in the classical sense, in this case, the customers are state or municipal enterprises. In this regard, risks of improper fulfillment, non-payment, and the risk that the state, represented by the prosecutor’s office, may question the commercial purpose of such agreements may arise.
– Do you see regulatory or legislative barriers today that most hinder the development of decentralized generation in Ukraine?
– Yes, one of the biggest deterrents is administrative price barriers, such as price caps, and the overall lack of transparency in their adoption. We also have a rather unstable situation with Public Service Obligation (PSO) regulation — for example, preferential conditions for the purchase of natural gas are also difficult to predict. All of this together puts the investor in a situation of legal uncertainty, which does not favor investment in Ukraine’s energy sector.
– What is the main practical advice you would give to forum participants planning to invest in their own generation, energy storage, or energy efficiency in 2026?
– The main advice for investors is not to neglect the proper structuring of the future project and to have a clear understanding of operating modes, resource sales markets, and key regulatory nuances before purchasing equipment. As our practice with investors shows, those who spend a little more time on proper structuring and calculating future project models may not start implementation as quickly, but they bring the project to commercial operation faster than those who do not.
In 2026, energy projects will be won not by those who buy equipment faster, but by those who understand the rules of the game more deeply. It is quality legal structuring that becomes the foundation determining whether the idea of generation turns into a stable business or remains an expensive experiment.
