Investors Should Build Substations to Power Ukraine's New Energy Projects

Official Cites Grid Connection Delays for New Power Plants

According to Главком: Oleksandr Trokhymets, Vice President of ICC Ukraine, has stated that the procedure for connecting new power generation to the national grid via Ukrenergo is causing significant project delays. He argues that the current system, which relies on tenders, creates an average delay of six to eight months. According to Trokhymets, this complicates investment processes and holds back the commissioning of new energy capacity, a critical issue for a nation rebuilding its infrastructure.

On April 9, First Deputy Prime Minister and Minister of Energy Denys Shmyhal announced a new tender for constructing 1.3 GW of new generation capacity. Trokhymets believes the situation would improve if investors were permitted to build substations themselves.

“Due to heavy regulation and lengthy procedures for preparing and approving procurement processes for Ukrenergo, investors face the risk that a substation-built 100% with investor funds-will be completed much later than the new power plant is ready to generate electricity,” Trokhymets noted.

Proposed Solutions to Streamline Development

He further emphasized that

“The simplest way is to allow Ukrenergo to delegate the right to order the construction and reconstruction of networks, developed based on design estimates, to the party requesting the connection.”

This could be a vital step in eliminating delays and fostering the development of new flexible capacity, energy storage, and generation in areas where the power system faces a technical deficit. Therefore, Trokhymets's proposals could form the basis for improving new generation connection processes in Ukraine.

These statements underscore the importance of simplifying procedures to attract investment into Ukraine's energy sector. With rising electricity demand and a pressing need for infrastructure modernization, optimizing the process for connecting new capacity could significantly impact the country's energy independence. Implementing the suggested changes would not only accelerate project timelines but also ensure more efficient use of investment resources within the energy industry.

As Ukraine seeks to enhance its energy capacity, the recent announcement of a 1 GW power generation tender signifies a crucial step towards achieving renewable energy goals. This initiative aligns with the ongoing discussions about streamlining connection processes, which could further facilitate investment and development in the sector.