Cabinet expands conditions for businesses to operate without power cuts

The Cabinet of Ministers of Ukraine has expanded the list of conditions under which forced electricity supply restrictions will not be applied to industrial and commercial consumers. The new rules are intended to stimulate businesses to develop their own and distributed generation, as well as to increase electricity imports.

On August 20, reported First Deputy Prime Minister – Minister of Energy Denys Shmyhal.

According to him, the relevant decision was adopted by the government on the initiative of the Ministry of Energy.

Electricity supply restrictions will not be applied to industrial and commercial consumers that ensure at least 80% of their energy consumption through:

• electricity of own production;
• electricity from distributed generation facilities within the territory of one distribution system operator;
• imported electricity.

Thus, enterprises that independently cover most of their electricity needs or purchase the required volume abroad will be able to operate without forced electricity supply restrictions being applied to them.

A separate mechanism is provided for distributed generation. It will apply to gas piston and gas turbine units and will operate within the territory of one distribution system operator.

The Ministry of Energy expects that this approach will create additional incentives for the construction of new generating capacities. This primarily concerns regions where there is a shortage of electricity and enterprises are particularly dependent on the stability of energy supply.

Another goal of the decision is to increase commercial electricity imports. Businesses that cover the required share of their consumption with imported resources will also be able to avoid forced restrictions. The electricity must be purchased on market terms.

The government has also regulated the interaction procedure for participants of the new mechanism. It will involve NPC Ukrenergo, distribution system operators, electricity suppliers, owners of distributed generation facilities, and consumers directly.

The decision is being taken amid preparations of the energy system for the next heating season. Ukrainian authorities are counting, among other things, on increasing the number of relatively small generating facilities that can supply electricity to enterprises and certain territories and reduce the load on the overall energy system.