According to the latest data from the global Ease of Doing Business ranking, published last week, Ukraine has improved its position by 7 points, securing the 64th place out of 190 countries in the Doing Business 2020 report. Key positive changes noted by the global business community include the protection of minority investors, obtaining construction permits, and the simplification and technical streamlining of the power grid connection procedure. The inclusion of this last criterion underscores its critical importance for business development, particularly in sectors such as renewable energy. What has changed, and what nuances of connecting to power grids should those interested in the green energy sector be aware of?

The process of connecting a renewable energy project to power grids can be roughly divided into three key stages: 1) obtaining technical conditions (TC); 2) developing project documentation for the connection; and 3) construction and commissioning of the power grids themselves.

Stage 1: Obtaining Technical Conditions (TC)
The first stage involves obtaining technical conditions during the preparatory phase of construction. This includes working on the appendix to the electricity supply contract, which outlines all the recommendations and requirements for the power transmission company to connect the facility to the grid.

Technical conditions typically include:
• General technical specifications
• Requirements for the customer’s electrical installations (detailing all necessary work on the customer’s networks to enable energy transmission)
• Requirements for the power transmission company’s electrical installations (detailing the work on the power company’s networks, financed by the customer, to provide the required capacity)

The complexity of this stage lies in critically analyzing the TC and identifying potential pitfalls that could lead to significant cost overruns or delays. Experienced professionals can foresee such issues and negotiate with the power company to address or mitigate them.

Stage 2: Developing Project Documentation
Once the TC is obtained and agreed upon by both parties, the next stage involves developing the project documentation for the connection. This documentation must be approved by both the regional power company and the National Power Company “Ukrenergo”. The approval process can be lengthy, ranging from 2 weeks (if handled by experienced specialists) to 3 months or more. The documentation must comply with all relevant norms and legislation.

Stage 3: Construction and Commissioning
The final stage involves the actual construction and commissioning of the power grids. This includes all construction and installation work under the supervision of the power company, obtaining all necessary permits, and conducting the final procedures to energize the system. Proper execution at this stage is crucial to avoid any delays or issues that could extend the project timeline by several months.

Optimizing Costs and Avoiding Pitfalls
To avoid unexpected costs and delays, it is crucial to:
• Critically analyze the TC and engage in professional dialogue with the power company.
• Accurately calculate the cost of connecting to the power grid with the help of experienced specialists.
• Select reliable and cost-effective equipment with acceptable delivery times.
• Ensure professional and constructive communication throughout the project.

Conclusion
Implementing renewable energy projects involves navigating numerous nuances that require expert guidance and support. As Ukraine continues to progress in global business rankings, it is hoped that the country will achieve greater transparency in business operations, thus enhancing its investment appeal, particularly in the renewable energy sector.

November 7, 2019