04.06.2026
On May 26, 2026, in Kyiv, at the International Exhibition Center, the Energy Forum “Energy Decentralization 2026: Generation, Storage and Financing” took place, organized by the Energy Club business community together with Kyiv Global Expo within the framework of the Green EnerTech – 2026 international exhibition. The event became a platform for discussing current challenges in the energy sector and searching for effective technological and financial solutions for the development of decentralized energy.
During the forum, Maksym Fedotov, attorney, CEO and founder of the FEDOTOV&PARTNERS law firm, spoke about the legal models of distributed generation operation in Ukraine, practical cases of project implementation, licensing specifics, and key legislative changes affecting the market in 2026.
The company FEDOTOV&PARTNERS specializes in supporting participants in the electricity and natural gas markets, working with traders, suppliers, producers, active consumers, and installers of energy equipment. The company’s client portfolio includes more than 100 energy sector enterprises, which allows forming a practical cross-section of current market trends.
Maksym Fedotov highlighted four main models of functioning for enterprises with distributed generation:
One of the most common models today is the active consumer, who simultaneously consumes electricity and can supply it to the grid. This model has become especially relevant for facilities using solar power plants, cogeneration units, and energy storage systems.
The speaker drew attention to a new legislative possibility of placing a third-party energy storage system on the territory of an active consumer. As an example, he cited a case in which an ESS operator installed a storage system in the networks of an active consumer, provided that 20% of the capacity was reserved to ensure power supply to the facility during power outages. The remaining 80% was used for price arbitrage in the market.
According to Maksym Fedotov, this model turned out to be mutually beneficial: the active consumer received additional income and increased the attractiveness of the facility for tenants due to energy independence, while the system operator continued to earn from market operations.
The speaker called the model of generation for own needs the simplest from a legal point of view. If electricity is not supplied to the external grid, the legislation does not set capacity limits, which significantly simplifies the implementation of such projects.
Maksym Fedotov paid special attention to the mechanism of supplying electricity to adjacent facilities. The current market rules allow electricity producers from renewable sources to sell it to consumers located on adjacent or common plots of land without obtaining a supply license. At the same time, the tariff for transmission and distribution of electricity is not paid.
Recent changes adopted by the NEURC extended this possibility to operators of energy storage systems as well. From now on, they can store electricity from the grid and sell it to adjacent consumers without a supply license and without additional costs for transmission and distribution.
Despite the increase in the licensing threshold, classic producers and operators of energy storage systems must complete a number of mandatory procedures to enter the market. This includes grid connection, concluding agreements with NPC Ukrenergo, the Market Operator, the Ukrainian Energy Exchange, and participating in balancing mechanisms.
The CEO of FEDOTOV&PARTNERS emphasized that even in the absence of a license, producers and operators must take into account market rules, REMIT provisions, balancing obligations, and risks of penalties for failing to meet established operating schedules.
At the same time, one of the most important innovations was the unification of the licensing threshold for electricity producers and ESS operators at the level of 5 MW. Until this indicator is reached, obtaining a NEURC license is not required, although compliance with market procedures remains mandatory.
Among the positive changes, the speaker also noted the possibility of applying a simplified taxation system by active consumers. Despite the fact that electricity is an excisable good, the legislator allowed active consumers to remain on the simplified taxation system even in the case of selling surplus electricity generated.
As for the excise tax, it applies only to licensed electricity producers. After obtaining a license, a business entity becomes an excise taxpayer at a rate of 3.2%. For active consumers and producers operating below the licensing threshold, such requirements do not apply.
Among the most important changes in recent months, Maksym Fedotov highlighted:
The speaker paid special attention to the prospects of Ukrainian guarantees of origin of electricity entering the EU markets. In his opinion, integration into the European system could open up additional opportunities for monetization of “green” generation for producers from renewable sources and increase the investment attractiveness of the industry.
In conclusion, Maksym Fedotov noted that the development of distributed generation in Ukraine is accompanied by a significant expansion of legal tools for business. New working models, simplified licensing, tax incentives, and gradual integration into the European energy space create additional opportunities for investors and consumers. At the same time, the successful implementation of such projects requires comprehensive consideration of regulatory requirements and professional legal support at all stages of their implementation.
