At the initiative of the Ministry of Energy, the Cabinet of Ministers of Ukraine approved a decision that, according to First Deputy Prime Minister of Ukraine – Minister of Energy Denys Shmyhal, will create additional incentives for the development of distributed generation and an increase in electricity imports.

As the Minister of Energy noted, electricity supply restrictions will henceforth not be applied to industrial and commercial consumers that cover at least 80% of their electricity consumption through:

• electricity generated by their own facilities;
• electricity supplied by distributed generation facilities within the service area of a single distribution system operator. The mechanism will apply to gas reciprocating and gas turbine distributed generation units and will operate within the territory of a single distribution system operator. This will encourage the construction of new generation capacity, particularly in energy-deficit regions;
• imported electricity, which will contribute to increasing electricity imports on market-based terms.

To ensure the effective implementation of this mechanism, the decision also establishes procedures for interaction among Ukrenergo, distribution system operators, electricity suppliers, distributed generation producers and consumers.