Further deregulation of urban planning, land use, and grid connection for distributed generation and BESS in Ukraine

On 1 October 2026, Law of Ukraine “On the State Enterprise Eastern Ore Dressing Complex” No. 4952-IX dated 19 August 2026 (“Law”) came into force.

Among other matters, the Law introduces a comprehensive deregulation package designed to ensure the fastest possible commissioning of distributed generation facilities and energy storage systems (BESS). The legislative amendments target three key areas: land allocation rules, urban planning procedures, and grid connection terms issued by Distribution System Operators (“DSOs”). These measures aim to eliminate regulatory bottlenecks and accelerate capacity expansion during martial law.

LAND USE

For the duration of martial law and for 12 months following its termination or repeal, the siting of renewable, flexible, and storage assets (solar, biogas, biomass, gas piston, gas turbine, in particular cogeneration, modular boiler houses, and BESS) (hereinafter, the “Facilities”) on land plots of any ownership form or designated category except for some categories listed below will be governed by special rules defined by the Cabinet of Ministers of Ukraine (the “Government”), eliminating the requirement for formal change of designated use and allotment.

Siting of this type of the Facilities will require the owner’s consent (for owned land) or the joint consent of both the landowner and the user/lessee (for leased land or lands under the easement).

For lands used under a permanent use title, the relevant local self-government bodies may grant a right of superficies (right for construction) or a land easement to an investor subject to the permanent land user’s consent – without expropriating the land or terminating the user’s permanent land use right.

If a local self-government body fails to issue a reasoned written refusal within 30 calendar days from receiving the application and draft agreement, approval for siting is deemed granted automatically on the 31st day.

This simplified land allocation regime does not apply to environmentally sensitive or protected lands, including for example nature reserve fund lands and other conservation areas, water fund lands and protection zones, certain forested areas, mountainous regions of Carpathians at altitudes of 1,000 metres and above, etc.

URBAN PLANNING

For the duration of martial law, the construction, restoration, reconstruction, siting, capital repair, commissioning, and operation of the Facilities will be governed by special procedures to be established by the Government. The specific implementing regulations from the Government are currently being developed and pending adoption.

GRID CONNECTION

For the duration of martial law and for 6 months following its termination or repeal, DSOs cannot refuse to issue technical conditions for connecting power generation and associated equipment solely due to the absence of a registered real right to the land plot.

In such a case the applicant must provide to DSOs written consent for siting from the relevant landowner and land user. Such grid connections will follow the non-standard connection procedure, with the customer holding sole responsibility for designing the linear part of connection to the power grid.

Additional notes

For further information on the topic please contact senior partner Glib Bondar, counsel Olena Sichkovska-Chornobyl, managing associate Rostyslav Mushka, or by telephone +380 44 591-3355 or via e-mail.