Ukraine has introduced a new rule for producers of electricity from distributed generation facilities. They will be able to sign direct bilateral contracts with consumers without mandatory electronic auctions for selling electricity.
Energy Minister Denys Shmyhal said the decision was prepared after dialogue with businesses in the gas generation sector. The change is meant to expand the use of PPA contracts, long-term power purchase agreements between a generator and a corporate consumer.
Why business needs it
Direct contracts make it easier to place generation close to the enterprise that consumes the electricity. For companies operating under security risks, this can mean more predictable supply and less dependence on overloaded networks.
The model also gives businesses a clearer price horizon. If a company can sign a long-term agreement with a nearby generator, it can plan production costs and reduce the risk of interruptions.
Energy architecture
For Ukraine, the decision fits a broader shift toward decentralized energy. Smaller generation units, storage systems and local contracts can reduce pressure on the national grid and improve resilience of regions, communities and enterprises.
The government also expanded the list of critical infrastructure sectors so that electricity storage systems can be treated as critical infrastructure. Together, these steps create a legal base for private investment in energy resilience.
