The Cabinet of Ministers of Ukraine is considering the possibility of significantly reducing the time required to connect new generating capacities from renewable energy sources. It is expected that this will also help reduce the risks of outages if the procedure for connecting substations and other energy infrastructure to the general grid is modernized.
This is reported by Finway
Issues with Connecting New Capacities
Alexander Trokhymets, Vice President for Energy at the Ukrainian National Committee of the International Chamber of Commerce (ICC Ukraine), noted that significant regulation and lengthy procedures for preparing and approving procurements for the transmission system operator (“Ukrenergo”) create a risk of delays in launching substations for investors. He emphasized that substations that are fully financed by investors are often built much later than new power plants are ready to generate electricity.
“Due to significant regulation and long procedures for preparing and approving the procurement process for the transmission system operator (Ukrenergo), investors face the risk that a substation, which is 100% financed by the investor, will be built much later than the new power plant is ready to generate electricity,” Trokhymets said.
According to him, the current approach, where only “Ukrenergo” has the right to conduct tenders for the construction of substations, despite the fact that the financing is provided by investors, leads to project implementation delays averaging 6–8 months.
Proposals to Accelerate the Process
Alexander Trokhymets is convinced that the government can solve this problem by granting investors the right to independently build substations with selected contractors, while leaving “Ukrenergo” with the function of ensuring compliance with technical standards. In his opinion, the simplest solution is to delegate “Ukrenergo” the right of the construction and reconstruction contractor to the connection contractor after the development of project and cost documentation.
Trokhymets emphasized that all stakeholders, from the President to the leadership of “Ukrenergo,” recognize the need to attract investments and develop new generation capacities. That is why the connection process to the grid must be fast, transparent, and understandable for investors.
During the meeting of the Congress of Local and Regional Authorities under the President of Ukraine, which took place on April 9, First Deputy Prime Minister – Minister of Energy Denys Shmyhal announced a new competition for the construction of 1.3 GW of generating capacities. This includes, in particular, maneuverable capacities, energy storage systems, and new generation at points with a technical deficit of capacity in the energy system.