One step closer to the implementation of “smart grids”

This Law amends the Law of Ukraine “On Energy Efficiency” and the Law of Ukraine “On the Electricity Market” in terms of improving the term “smart grids”. The adopted legal act is a continuation of the Concept for the Implementation of “Smart Grids” in Ukraine until 2035. 

The purpose of the adoption of the Law is to ensure the timely preparation of a regulatory framework for the development of “smart grid” technologies, in particular microgrids and demand management, and to clarify the definition in accordance with the provisions of modern international and European standards.

The Law provides an improvement of the term “smart grids” and defines such terms as “microgrid”, “microgrid user”, “microgrid island mode”, “microgrid energy management system”, “demand response”, “demand management”.

Since now the term “smart grids” is defined as power grids that use technologies for managing electric power systems and information exchange related to it, relevant elements of technical systems designed to read, and control processes, including data, and switching equipment to combine the behaviour and actions of all connected consumers, electricity market participants in a cost-effective manner to ensure cost-effective, reliable, safe, sustainable operation of the power system.

The Verkhovna Rada by this Law directed the income of “Ukrenergo” from the sale of capacity of interstate connections in import-export operations to the repayment of debts in the electricity market. The income can be used for the following purposes:

• 50 per cent – to repay debts of the transmission system operator that have been formed in the balancing market;
• 50 per cent – to repay the debt of the transmission system operator to the guaranteed buyer for services rendered to ensure an increase in the share of electricity production.

Thus, these changes create a legal basis for the development of “smart grids” in Ukraine and additional sources of funds to improve the situation on the energy market. The introduction of “smart grids” contributes to the rapid and effective implementation of innovations in the energy sector. Transparent and stable regulation will create conditions for the growth of investor confidence, support the stability of the energy market and contribute to the creation of a competitive environment.

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