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Energy Storage in Ukraine: The War as a Catalyst, Regulatory Barriers, and the Search for Balance

03.10.2025

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On September 25, the “Resilience and Transformation: Balancing Ukraine’s Energy System in a New Reality” forum, organized by Energy Club, was held in Kyiv. During the first panel, “Resilience Under Attack: Operational Challenges and Realities of the Ukrainian Energy System,” experts discussed practical lessons from blackouts, the physical protection of energy infrastructure, the role of decentralization and distributed generation, and the interaction between TSOs, DSOs, and military-civil administrations in wartime.

Special attention was given to the topic of Energy Storage systems—a technology that could become one of the key elements of the energy system’s stability.

Oleksii Hnatenko, a partner in the dispute resolution practice at the new-generation law firm Juscutum, which specializes in B2B support and legal services for the tech industry, shared his vision.

The War as a Catalyst for Change

“When talking about Energy Storage, lawyers must first address the regulatory and legal framework. It has always been difficult to speak of order in Ukraine’s energy sector—we saw regulatory chaos even before the war. Today, the situation has been complicated by the constant destruction of infrastructure,” noted Oleksii Hnatenko.

According to him, the war, despite its destructive nature, has acted as a catalyst for change in the energy sector. It has clearly demonstrated the need to find new solutions and has provided answers to the question of what to do next.

“Unfortunately, we must state that the government often acts reactively, not proactively, in response to challenges. And we cannot say with certainty what will happen to our energy sector tomorrow. But right now, energy storage systems are becoming one of the solutions. Yes, it’s not the tool and not on the scale we would like to have, but it already provides an opportunity for maneuverability,” the lawyer emphasized.

The Revolutionary Path of Energy Storage

Globally, the development of Energy Storage is evolutionary, but in Ukraine, it is revolutionary, driven by the pressures of war.

“We must adopt new norms, regulations, and rules of operation for this technology. The question is how transparent, understandable, and fair they will be for business,” stressed Oleksii Hnatenko.

Main Problems in Implementing Energy Storage

The expert identified several key barriers:

  1. Lack of a certification procedure. Ukraine still does not have a comprehensive mechanism for certifying Energy Storage. Domestic production is limited to large-component assembly from imported parts, making it difficult to scale.
  2. Customs risks. Problems arise during importation with the classification of components. It is not always clear to customs how to assign equipment to specific HS codes. Some components, particularly technical fluids, can be classified as dual-use, creating additional risks and delays.
  3. Difficulties with grid connection. Although the NEURC has already regulated the use of Energy Storage up to a certain capacity, some regional energy companies (oblenergos) do not understand the system itself or the connection algorithm. Businesses face delays due to the need to explain technical aspects and prove the obvious. Sometimes, the matter has to be resolved in court.

The Role of the State

Oleksii Hnatenko emphasized that the state should not create artificial obstacles for business.

“Yes, we cannot allow complete freedom, as the equipment may have dual-use purposes. But the main task of the state today is not to interfere. Not to create problems at customs, during connection, or in its use. The energy sector is a very sensitive area that requires a special approach and care. We are now in a phase of transformation: moving towards decentralization and autonomization. This requires individual solutions,” he stressed.

Prospects: Production in Ukraine

The lawyer is confident that the key to success lies in developing domestic production, or at least large-component assembly of Energy Storage in Ukraine, rather than being completely dependent on imports.

“I think that in the near future, with the right dialogue between business and the state, we will be able to move the situation forward. Energy Club can also play an important role in this communication. And only then can we make the process of implementing this technology comprehensive and effective,” Hnatenko concluded.

Energy storage systems are not just a technological tool but a necessity in the new reality of war. They allow for the maneuvering of resources, increase the resilience of the energy system, and pave the way for decentralization. However, for their full development, the following are needed:

  • Transparent regulations,
  • Clear certification,
  • Resolution of customs and technical barriers,
  • A proactive, not reactive, position from the state.

Ukraine is undergoing an energy transformation, and Energy Storage could become its foundation—if the government and business learn to act together.

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