New legislation for expedited development for RES projects in Ukraine

On 1 October 2026, the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding the Implementation of European Union Legislation in the Field of Renewable Energy Sources” No. 4963-IX dated 2 September 2026 (the “Law”) entered into force, save for certain provisions that will take effect 12 months after the termination of martial law.

The Law aligns Ukraine’s legislation on renewable energy sources (“RES”) with its obligations under the Energy Community Treaty and EU law, in particular RED II (Directive (EU) 2018/2001) and RED III (Directive (EU) 2023/2413). Its key innovations are the introduction of accelerated development areas for RES (“RES Acceleration Areas”) and simplified permitting procedures for RES projects, particularly those implemented within such areas.

RES ACCELERATION AREAS

RES Acceleration Areas are territories identified as particularly suitable for renewable energy facilities, where RES development will have the least impact on the environment. The Government of Ukraine will approve their plan (planning scheme), to be developed by the Ministry of Energy of Ukraine together with other ministries. Priority will be given to built-up and artificial surfaces, such as roofs and facades of buildings, car parks, industrial facilities, landfills and mines, while protected areas and other territories important for biodiversity conservation will be excluded. Local urban planning documentation must now include a dedicated section on RES Acceleration Areas.

SIMPLIFIED PERMITTING REGIME FOR RES PROJECTS

The Law of Ukraine “On Alternative Energy Sources” becomes lex specialis for the construction of RES facilities and sets a single cap on the aggregate duration of all permitting procedures. The cap covers urban planning permits and approvals for construction, grid connection and commissioning, the environmental impact assessment (“EIA”) (except transboundary EIA) and the special subsoil use permit (where required). It runs from the day the application is filed through the contact point (via the Diia Portal and the Unified State Electronic System in the Construction Sector) and does not cover construction works or administrative and court appeals.

The key aggregate caps are as follows:

*In the event of force majeure, the specified time limits may be extended by no more than six months.

** These caps apply irrespective of location, save for certain exceptions (e.g. facilities subject to special cultural heritage, national security and defence or public safety requirements).

Separate caps apply to reconstruction and technical re-equipment of RES facilities and to heat pumps. Within the aggregate cap, each permitting authority and grid operator must issue the permit, conclude the grid connection agreement or provide the technical connection conditions no later than 30 days in the RES Acceleration Areas and 45 days outside them.

In addition, generally, RES projects within the RES Acceleration Areas are exempt from the EIA, provided they meet the environmental and climate impact mitigation requirements to be approved by the Government.

OTHER KEY CHANGES

Public interest

Until climate neutrality is achieved, RES projects, including projects incorporating battery energy storage systems (“BESS”), are recognised as being in the public interest, in particular for obtaining permits, grid connection and commissioning.

Grid connection fee for BESS

The fee for non-standard grid connection of BESS will be calculated based on the higher of the requested offtake and injection capacity, ending double charging for charging and discharging capacity. The Ukrainian Energy Regulator (“NEURC”) must adopt the relevant secondary legislation within 45 days of the Law’s entry into force.

“Green” auctions

At least 50 percent of the auction price may be fixed in EUR for the auction winner, renewable energy communities may participate on equal terms with other producers, and auction regions will be determined taking into account the RES Acceleration Areas. An auction will be valid only if bids are submitted by more than one participant.

Land use and spatial planning

Land under field-protective forest belts may now be used for underground power cable lines, removing a long-standing obstacle for wind and solar projects on agricultural land. Until 1 January 2030, a detailed plan of territory for energy facilities outside settlements may be approved even where the territorial community has no approved comprehensive spatial development plan.

Renewable energy communities and renewable fuels

The Law also establishes a legal framework for renewable energy communities, introduces an EU-aligned classification of renewable fuels, extends the sustainability and greenhouse gas emissions reduction criteria to all producers and sellers of biofuels, bioliquids and biomass fuels, and updates the rules on the biomethane register.

Impact on Business: the RES Acceleration Areas and the aggregate permitting caps are expected to shorten the pre-construction phase and give developers and lenders more predictable project timelines. At the same time, several key mechanisms, including the RES Acceleration Areas plan, the EIA mitigation requirements and the BESS connection fee rules, depend on implementing acts of the Government and NEURC. Overall, these changes bring Ukraine’s renewable energy framework closer to EU standards and open the way to recognition of Ukrainian renewable energy products in the EU.

ADDITIONAL NOTES

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