Hybrid Generation Systems (RES + Storage): Legal Aspects of Securing a License

The renewable energy market in Ukraine is gradually moving from conventional solar and wind power plants to more complex hybrid solutions that combine electricity generation with energy storage facilities. Such systems make it possible to use generated electricity more efficiently, reduce the load on the grid, improve the stability of the facility’s operation, and create additional opportunities to participate in the electricity market.

At the same time, integrating an energy storage facility (ESF) into a solar or wind power plant raises a number of legal issues. In particular, business entities often ask whether a separate license for electricity storage is required if the storage facility operates exclusively as part of a generating facility, as well as what requirements the NEURC imposes on such projects.

In this article, we will examine the legal aspects of operating hybrid generation systems in 2026, cases where it is possible to limit the licensing to an electricity generation license, as well as the practical aspects of preparing documents for licensing.

What Is a Hybrid Generation System and How Is It Regulated by Law in 2026?

A hybrid generation system is an energy complex in which a power plant, most commonly a solar or wind power plant, operates together with an energy storage facility as a single technological facility. This configuration makes it possible not only to generate electricity but also to manage it flexibly by storing surplus electricity during peak renewable energy generation hours and supplying it to the grid when this is economically or technically advantageous.

From a regulatory perspective, it is important to understand the key approach: Ukrainian legislation does not recognize “hybrid systems” as a separate type of licensed activity. Instead, the principle is based on two basic functions of the facility: electricity generation and electricity storage.

The regulator’s latest amendments, in particular NEURC Resolutions No. 675 and No. 789, are generally aimed at simplifying the integration of energy storage facilities into renewable energy projects, protecting investors from a double licensing burden, and making energy storage facilities part of the unified energy system. Therefore, it is critically important for investors to properly determine the role of the energy storage facility within the structure of the project at the design stage and document it accordingly, as this directly affects the licensing model and subsequent operation in the market.

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When Can You Operate Without an Energy Storage License?

The regulator’s basic rule is clear: energy storage activities are subject to licensing only if the installed capacity of the energy storage facility at a single metering point exceeds 5 MW. Licensing Conditions for Electricity Storage.

However, even if the capacity exceeds this threshold, or if the energy storage facility is integrated into an existing facility, the legislation provides for an exhaustive list of cases in which activities may be carried out without obtaining an energy storage license:

1. For consumers: provided that at no time does such consumer supply electricity previously stored in the energy storage facility to the Unified Energy System of Ukraine or to the networks of other business entities.
2. For renewable energy producers operating under the “green” tariff (as part of the Guaranteed Buyer’s balancing group): provided that electricity is withdrawn exclusively from the producer’s own generating facilities, electricity supplied to the grid does not exceed the generating facility’s capacity specified in the electricity generation license, and separate commercial metering of electricity flows to and from the energy storage facility is ensured.
3. For renewable energy producers operating under the “green” tariff (outside the Guaranteed Buyer’s group): provided that at any given time, the total capacity of electricity supplied to or withdrawn from the transmission or distribution system operator’s networks does not exceed the capacity ordered for connection under the connection agreement, and separate commercial metering is available.
4. For renewable energy producers that have acquired the right to state support through auctions, as well as producers operating without state support: subject to similar conditions regarding compliance with the permitted connection capacity and the availability of separate commercial metering for the energy storage facility.
5. For other electricity producers: at the location where electricity generation activities are carried out, provided that the total capacity of electricity supplied at the connection point does not exceed the permitted supply capacity under the agreement and separate commercial metering is installed for the energy storage facility.

Key takeaway: If an energy storage facility is integrated into a solar or wind power plant and is used exclusively within the exceptions provided for by the Licensing Conditions, in particular without independent participation in the electricity market and subject to compliance with capacity limitations and separate commercial metering, a separate energy storage license is not required. Each case requires an assessment of the actual operating model of the energy storage facility.

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Mirror Exception: When Does an Energy Storage Operator Not Need a Generation License?

A reciprocal rule also applies, protecting energy storage operators. Since the physical supply of electricity to the grid occurs when a battery is discharged, this could potentially be treated as electricity generation.

However, the Licensing Conditions for Electricity Generation clearly provide that an energy storage operator that uses electrical installations to supply electricity at the location where energy storage activities are carried out is exempt from the obligation to obtain an electricity generation license for the discharge generation of the energy storage facility, provided that the following conditions are met:

• the total capacity of electricity supplied to or withdrawn from the grid at any given time does not exceed the existing permitted capacity of the facility at the connection point;
• separate commercial metering is provided for electricity flowing both into and out of the energy storage facility.

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NEURC Requirements for the Documentation and Operation of Hybrid Systems

When reviewing documents, the NEURC assesses not only the formal presence of equipment but also the actual structure of the facility and the nature of its activities. To obtain an electricity generation license, the applicant must confirm:

• ownership or rights of use of the generating facility;
• rights to the land plot, where necessary;
• the technical characteristics of the equipment in place;
• documents confirming that the facility has been commissioned;
• information on the installed capacity;
• information on the locations where the licensed activities are carried out.

For a project involving an energy storage facility, it is advisable to separately document its status in the technical documentation and explain the mechanism of interaction between the generation facility and the energy storage facility. Particular attention should be paid to:

• electrical connection diagrams;
• technical conditions for connection;
• project documentation.

If the operating mode of the energy storage facility changes or it is integrated into market mechanisms, it is advisable to additionally assess whether an energy storage license is required, taking into account the requirements of the NEURC Licensing Conditions, Licensing Conditions for Energy Storage.

In addition, a licensee must continuously comply with the licensing conditions and notify the regulator of any changes to the characteristics of the facility that may affect the performance of the licensed activities.

Legal Support for Obtaining an Electricity Generation License: How We Can Help

Implementing a hybrid energy project requires a comprehensive analysis of not only technical but also regulatory aspects. Mistakes at the project structuring stage can lead to licensing delays, additional expenses, and the need to resubmit documentation for approval.

Our team supports renewable energy projects and helps:

• assess whether a separate energy storage license is required;
• prepare a package of documents for the NEURC;
• provide support throughout the process of obtaining an electricity generation license (and an energy storage license, if necessary);
• provide consultations on the participation of hybrid systems in the electricity market.

With practical experience in licensing procedures and energy legislation, we help clients choose the appropriate legal model before the facility begins operations, which helps avoid unnecessary expenditure of time and resources in the future.

To obtain a reliable legal solution for your facility and protect your investment from regulatory risks, call our toll-free number or submit an application online.