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NEURC raises electricity market price caps

On 16 January 2026, the National Energy and Utilities Regulatory Commission of Ukraine (NEURC) adopted an emergency resolution increasing price caps in the electricity market in response to a critical power deficit. The revised limits, effective from 17 January 2026, were introduced to stimulate domestic electricity generation as well as imports.

Specifically, the regulator increased the maximum price caps to UAH 15,000/MWh on the day‑ahead and intraday markets, and to UAH 16,000/MWh on the balancing market.

From 31 March 2026, updated price caps will apply across key market segments as follows:

1.  Day-Ahead Market and Intraday Market 
MAXIMUM PRICES
00:00–07:00 & 11:00–17:00 5,600.00 UAH/MWh
€109/MWh
07:00–11:00 & 23:00–24:00 6,900.00 UAH/MWh
€135/MWh
17:00–23:00 15,000.00 UAH/MWh
€293/MWh
MINIMUM PRICE
  10.00 UAH/MWh
€0.2/MWh
2.  Balancing Market
MAXIMUM PRICES
00:00–07:00 & 11:00–17:00 6,600.00 UAH/MWh
€129/MWh
07:00–17:00 & 23:00–24:00 8,250.00 UAH/MWh
€161/MWh
17:00–23:00 16,000.00 UAH/MWh
€312/MWh
MINIMUM PRICE
  0.01 UAH/MWh
€0.0002/MWh

( Conversion based on an exchange rate of 1 EUR = 51.2718 UAH. Actual rates may vary )


NEW LEGISLATION


Ukraine reforms renewable energy support model 

On 9 March 2026, the President of Ukraine signed the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Improving the Functioning of Energy Markets, Competitive Conditions for Electricity Generation from Renewable Energy Sources and Strengthening Energy Resilience" (the Law).

The Law introduces substantial changes to the regulatory framework governing the renewable energy sector, including revisions to the auction support scheme, grid connection rules, regulation of energy storage, and the system of guarantees of origin for renewable electricity.

Key developments include:

  • Extension of the auction support scheme until 31 December 2034, enhancing long-term regulatory predictability for investors.
  • Reduction of the minimum support quota from 10% to 5%, alongside the introduction of a dedicated 10% quota for solar projects combined with energy storage, subject to specific technical and time‑based requirements.
  • Introduction of a flexible grid connection mechanism, enabling the integration of new generation capacity even where transmission or distribution network capacity is constrained.
  • Clarification of the rules governing the connection of multiple installations at a single grid connection point for shared network use by different entities, subject to separate commercial metering.
  • Establishment of a dedicated regulatory framework for energy storage, including licensing requirements. In particular, a license is required where the installed storage capacity at a single metering point exceeds 5 MW. At the same time, storage operators may utilise on-site generation facilities without a separate generation licence, subject to applicable capacity limits and metering requirements.
  • Modernisation of the system of guarantees of origin to ensure their free circulation and to expand opportunities for international recognition.

Overall, the Law aims to strengthen state support mechanisms for renewables, enhance flexibility of grid access, and create a more predictable regulatory environment for generation and energy storage projects. These changes are expected to further stimulate the development of Ukraine’s renewable energy sector and attract new investment.

More detailed analysis of the Law is available
in our legal alert via this link 


Ukraine moves to align energy infrastructure rules with EU TEN-E framework

On 2 February 2026, Draft Law No. 13450 "On Energy Infrastructure Projects of Public Interest" was submitted to the Ukrainian Parliament for second reading.

The Draft Law aims to align Ukraine’s regulatory framework with Regulation (EU) 2022/869 (TEN‑E), laying the foundation for accelerated development of strategically important energy infrastructure projects in the electricity, hydrogen and smart gas sectors.

Key features of the Draft Law include:

  • Creation of a dedicated legal category for energy infrastructure projects of public interest, encompassing EU‑designated Projects of Common Interest and Projects of Mutual Interest (PCIs and PMIs), as well as nationally significant projects.
  • Establishment of procedures and criteria for the selection of energy infrastructure projects of public interest.
  • Introduction of support and incentive mechanisms facilitating the implementation of such projects.
  • Regulation of cross‑border sharing of investment costs for Energy Community Projects of Mutual Interest among beneficiary countries.
  • Expansion of stakeholder engagement and public consultation mechanisms.

The Draft Law represents a significant step toward harmonising Ukraine’s energy infrastructure planning and permitting framework with EU standards and is expected to accelerate the implementation of strategic and cross‑border projects while improving the investment climate for capital‑intensive infrastructure developments.


Simplified Procedure for Rooftop and Façade‑Mounted Solar Installations

On 28 January 2026, the Cabinet of Ministers of Ukraine (CMU) adopted Resolution No. 77, expanding the list of construction works that do not require construction permits and are exempt from acceptance into operation upon completion.

The updated list now includes the installation of solar power plants on rooftops and building façades, as well as replacement of equipment at such installations.

The traditional permitting procedure has been replaced with a professional technical inspection mechanism, whereby a certified specialist issues a report confirming the technical feasibility and safety of the proposed works.


National Energy and Climate Plan: the Cabinet of Ministers determined the procedure for its preparation and approval

On 2 January 2026, the CMU approved the procedure for the preparation and approval of the National Energy and Climate Plan (the Plan).

The Plan defines the framework for setting state priorities in the energy sector, including decarbonisation, renewable energy development, energy efficiency, energy security, research and innovation, competitiveness, and the functioning of the internal energy market. It will establish clear objectives, quantitative targets, policies, measures, and, where applicable, investment projects.

The draft Plan is subject to public disclosure, consultations with stakeholders (including the business community), and submission to the Energy Community Secretariat for assessment of compliance with Ukraine’s international obligations. 


Ukraine Narrows Customs and VAT Relief for Energy Community Projects 

Under Resolution No. 327 adopted on 12 March 2026, Ukraine revised the scope of customs duty and VAT exemptions applicable to projects financed by the Energy Community Secretariat.

The government narrowed the list of eligible goods by excluding certain categories of electrical equipment. Specifically, the exemptions no longer apply to products classified under commodity code 8504, including electrical transformers, static converters (such as rectifiers), inductors and chokes.


REBUILDING RESTORING AND INTERNATIONAL AID


Ukrainian banks support over 1.4 GW of new and restored power capacity

Under a dedicated memorandum focused on rebuilding Ukraine’s energy infrastructure, domestic banks mobilised approximately UAH 38.7 billion to finance energy sector projects.

Between 1 June 2024 and 1 March 2026, banks provided more than 3,000 loans to businesses totalling UAH 35.9 billion, and over 15,000 loans to households amounting to UAH 2.8 billion.

This financing supported the deployment and restoration of generation assets with a combined capacity of approximately 1.405 GW, contributing to the stability and resilience of Ukraine’s power system.


Three investment agreements on the reconstruction of Ukraine’s infrastructure and energy sector signed in Davos

Within the framework of the Ukraine House in Davos, three investment agreements were signed relating to the reconstruction of infrastructure and development of the energy sector in Ukraine.

Amber Dragon Ukraine Infrastructure Fund I raised approximately €200 million of its €350 million target for investments in critical infrastructure, while Horizon Capital Catalyst Fund held its first closing at €152 million against a target size of €300 million for investments in energy, digital infrastructure and construction.

The first investment of Horizon Capital Catalyst Fund is a joint project with Notus Energy for the construction of a 124 MW wind farm in Odesa Oblast, with a total budget exceeding €220 million. Under the transaction structure, the Horizon Capital fund will acquire a 45% equity stake, while Notus Energy will retain control, provide the remaining equity financing, and be responsible for construction and operation of the facility.

The conclusion of these agreements demonstrates the existence of practical mechanisms for attracting private capital to reconstruction and energy infrastructure projects in Ukraine.


The EBRD increased its financing for Ukraine to a record €2.9 billion in 2025

The European Bank for Reconstruction and Development (EBRD) confirmed the continuation of large‑scale support for Ukraine, with a particular focus on the energy sector. Financing is being directed towards gas imports, decentralised generation, emergency repairs and long‑term modernisation of energy infrastructure.

In particular:

  • Since 2022, total EBRD support for Ukraine has reached €9.1 billion;
  • In 2025 alone, the EBRD provided €2.9 billion, of which more than €1.2 billion was allocated to the energy sector;
  • Over 90% of projects and 57% of total investment volume were directed to the private sector.

The EBRD’s continued engagement confirms the energy sector’s central role in international assistance to Ukraine and further enhances the investment attractiveness of energy and reconstruction projects.






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