New rules for electricity grid connection: changes introduced by law no. 4213-ix

Contents

  1. Advance Payment for Connection to the Transmission System Operator (TSO) Network
  2. Capacity Reservation for Wind Generation
  3. Validity Period and Extension of Technical Conditions (TCs)
  4. Connection of Multiple Generating Units at a Single Point (Cable Pooling) and Limiting Actual Capacity
  5. Changes to Existing Connection Agreements
  6. Why Is This Important?

On February 9, 2025, the Law of Ukraine “On Amendments to Certain Laws of Ukraine in the Fields of Energy and Heat Supply to Improve Certain Provisions Related to Business Activities and the Implementation of Martial Law in Ukraine” No. 4213-IX came into force. This law introduces significant changes to the procedures for connecting to electricity grids, which are crucial for businesses and the development of power generation.

Here are the TOP-5 Changes in Electricity Grid Connection:

Advance Payment for Connection to the Transmission System Operator (TSO) Network

From now on, applicants for grid connection must make an advance payment for the requested capacity at a rate of 10 euros per 1 kW. The payment is made in two stages:

  • 50% – within 30 days from the date of receiving the technical conditions (TC);
  • 50% – within 12 months from the date of receiving the TC.

Applicants have the right to terminate the connection agreement within six months and receive a refund of the paid amount. However, if the project documentation for the construction/reconstruction/technical upgrade of electrical networks is not submitted to the TSO within 12 months, the agreement is terminated, and the advance payment is non-refundable.

The new advance payment mechanism ensures transparency of the connection process and reduces the risk of irresponsible capacity reservation. This will contribute to more balanced planning of electricity infrastructure development by investors and the transmission system operator.

Capacity Reservation for Wind Generation

A new capacity reservation mechanism has been introduced for wind power plants with a capacity of 20 MW or more. Under a reservation agreement, the applicant must conclude a connection agreement within two years. The reservation fee is 5 euros per 1 kW, which is credited toward the total connection cost. If the applicant does not sign the connection agreement, the payment remains with the TSO.

Capacity reservation helps prevent speculative resource blocking and provides a clear procedure for real investors to obtain the necessary capacities. This will positively impact the development of renewable energy sources (RES).

Validity Period and Extension of Technical Conditions (TCs)

Technical conditions (TCs) for grid connection are now valid for up to three years, but they can be extended if the applicant:

  • has approved the project documentation;
  • has paid the connection cost;
  • has obtained the necessary construction permits.

However, the total duration of the TCs cannot exceed six years.

The introduction of clear validity periods for TCs reduces the possibility of abuse by applicants who have no real construction intentions.

Connection of Multiple Generating Units at a Single Point (Cable Pooling) and Limiting Actual Capacity

The law now allows multiple power generation sources to be connected at a single point. This enables a combination of different electricity production technologies, optimizing grid infrastructure use.

Previously, the cable pooling mechanism was not clearly regulated, creating administrative barriers to combining various types of generation. Now, using a single connection point for multiple generation types simplifies RES integration, reduces infrastructure costs, and opens new investment opportunities in the renewable energy sector.

Additionally, the law removes the restriction that previously prevented the installed capacity of electrical installations from exceeding the permitted (contractual) capacity. Now, only the actual power output to the grid must not exceed the permitted capacity at the connection point.

Furthermore, the Regulator is now empowered to establish rules for connecting generating units to another producer’s electrical networks, which already have a TSO/DSO connection. This is another aspect of the cable pooling concept. The main requirements include:

  • the total electricity output from all generating units must not exceed the permitted (contractual) capacity at the connection point;
  • each producer’s electricity must be metered separately.

Changes to Existing Connection Agreements

All existing connection agreements must be updated within three months to comply with the new requirements, particularly regarding advance payment for connection. If an advance payment is not made within nine months of the law’s enactment, the agreement will be terminated.

Additionally, the applicant must submit the project documentation to the TSO within nine months or initiate contract termination. If the documentation is not submitted on time, the agreement is automatically terminated. In the case of contract termination by the applicant, the TSO must refund the applicant’s advance payment for the connection.

These requirements do not apply to connection agreements for RES facilities planned on temporarily occupied territories (as defined by the Ministry of Reintegration), provided that:

  • The agreements were valid as of February 24, 2022;
  • The project documentation was already developed and approved by the TSO.

After the relevant territories are removed from the list of temporarily occupied areas, parties must align their connection agreements with the law within one year.

Furthermore, the validity period of connection agreements for RES facilities and their technical conditions is automatically extended for three years from the date of the law’s enactment if:

  • the connection agreement was valid as of February 24, 2022.
  • by the time the law came into effect, the applicant had developed and approved project documentation with the TSO/DSO, submitted it to the system operator, and paid the connection cost.

Why Is This Important?

These changes establish clear rules for connection applicants, helping avoid uncertainties and delays in project implementation. The introduction of strict deadlines for submitting project documentation or terminating agreements ensures that investors make informed decisions rather than reserving capacity without intent to use it. This leads to more efficient grid management and resource optimization.

Overall, these innovations enhance market predictability and increase the sector’s attractiveness for new investments, particularly in the renewable energy industry.

If you need legal advice, please fill out the form below to request it. 

Sergiy Oberkovych

Sergiy Oberkovych

Senior Partner, Attorney at law

  • Recognitions
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Oleksandr Melnyk

Oleksandr Melnyk

Partner, Head of Corporate Law and M&A practice, Attorney at law

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