Licensing Industrial SPPs with Energy Storage Systems (ESS): How to Secure the 10% Support Quota Under the New Law

In 2026, Ukraine’s renewable energy market continues to transform toward greater generation flexibility and the integration of energy storage systems. One of the key regulatory updates is the introduction of a separate support quota for solar power plant projects combined with energy storage systems, namely SPP + ESS, in the amount of at least 10%.

This model effectively creates a new segment of investment projects in which electricity generation is no longer viewed separately from its storage and load management. Participation in state support mechanisms, in particular green auctions, within this quota is possible only if the established technical and legal requirements are met. At the same time, the legal regulation of such projects remains complex. It covers both electricity licensing and special approaches to the use of energy storage systems, which in certain cases may fall under a different regulatory regime or may not require a license at all.

That is why the key practical issue for investors in energy projects, developers, and industrial enterprises is choosing the correct legal model: when an SPP + ESS project requires a license from NEURC, how this affects participation in the support quota, and what risks arise if the activity is structured incorrectly. In this article, we will examine the mechanism of the 10% support quota for solar power plants with energy storage systems, as well as the key approaches to licensing such projects in 2026.

How the 10% Support Quota for Solar Power Plants with Energy Storage Systems Works

According to the latest changes in energy legislation, the state has moved from broad support for any renewable energy facilities to a model that stimulates controllable generation.

In this context, a special support quota of at least 10% of the annual volume has been introduced. This quota is reserved exclusively for solar power plant projects integrated with energy storage systems (SPP+ ESS).

In practice, this creates a separate competitive segment in which only technologically advanced facilities with the ability to manage generation and load participate.

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Market Advantage and Pricing Model for Participation in Auctions

The introduction of the quota changes the very logic of competition in green auctions. Unlike classic solar power plants, facilities with energy storage systems:

• compete only with each other within a separate segment;
• have higher maximum price indicators, which makes it possible to take into account capital costs for battery systems;
• receive an economic model focused on generation balancing.

This effectively creates financial predictability for the investor despite a higher level of capital expenditure.

State Support Mechanism

The support model for such facilities is implemented through a market premium mechanism, rather than a fixed tariff. In its basic logic, it works as follows:

• electricity is sold on the market at the current market price;
• if the market price is lower than the contract price, the difference is compensated by the guaranteed buyer;
• if the market price exceeds the contract price, the producer receives market income without restrictions from the state.

Thus, the model provides a balance between guaranteed payback and market flexibility, especially for facilities using energy storage systems.

Legal Regime and Licensing of Energy Storage Systems

An important feature of the legal regulation is that the use of energy storage systems does not always require separate licensing. Under the NEURC licensing conditions, energy storage systems may:

• be used within the scope of an electricity generation license;
• be classified in the submitted information as technologically connected equipment of the main generating facility.

One of the most progressive aspects of the current Licensing Conditions, paragraph 1.4 of Chapter I, is the possibility of avoiding obtaining a separate energy storage license. For the investor, this means reducing administrative procedures in practice by at least 30 calendar days and avoiding the need to pay an additional state fee.

However, the right to use an energy storage system within the scope of a generation license is not unconditional. The regulator, NEURC, establishes three strict criteria, non-compliance with which may lead to cancellation of the license or loss of the right to support:

Separate Commercial Metering and Confirmation of the Origin of Energy

Legal essence: The legislation, in particular the second paragraph of Article 30 of the Law of Ukraine “On the Electricity Market”, allows an energy storage system to withdraw electricity both from the owner’s generating facilities and from the networks of the distribution system operator or transmission system operator without obtaining a separate energy storage license. At the same time, for participation in renewable energy support mechanisms, proper commercial metering and the ability to distinguish “green” electricity from electricity withdrawn from the grid are of fundamental importance.

Practical consequence: An energy storage system may function as a technologically integrated component of a solar power plant without a separate license. However, the metering model and confirmation of the source of origin of electricity become key factors for preserving the right to a market premium and participation in support mechanisms.

Compliance with Installed Capacity

The total capacity of electricity supplied to the grid, simultaneously from the panels and from the batteries, must not exceed the installed capacity specified in the generation license at any moment.

• Technical implementation: The producer must configure inverter equipment and automation systems so that peak output to the Integrated Power System of Ukraine does not exceed the limit permitted under the license. For example, if the licensed capacity of the solar power plant is 7 MW, then even under full sunlight and simultaneous battery discharge, no more than 7 MW may be supplied to the grid.

Separate Commercial Metering 

The legislation requires a separate metering point directly for the energy storage system.

• Requirements of the commercial metering code: Energy flows must be recorded in both directions: to the energy storage system and from it.
• Why this is necessary: This is the only legitimate way to prove to the Guaranteed Buyer and the regulator that the volumes of energy for which you claim the 10% quota have actually passed through the storage cycle and were not unlawfully withdrawn from the grid.

Please note! Violation of these requirements is recorded by the Guaranteed Buyer and NEURC. The consequence is not merely a temporary suspension of payments, but the initiation of a procedure to deprive the producer of the right to the market premium and the application of penalties for violation of the Licensing Conditions.

Technical Requirements for Solar Power Plants with Energy Storage Systems to Participate in the Quota

To participate in the 10% support quota, an SPP + ESS project must meet the requirements for controllability and energy flexibility, in particular:

• the capacity of the energy storage system must be at least 80% of the installed capacity of the solar power plant;
• the minimum duration of autonomous operation must be at least 2 hours;
• commercial metering systems, namely automated commercial electricity metering systems, must be implemented for both generation and storage.

These requirements are aimed at ensuring that such facilities actually participate in balancing the power system.

Thus, the 10% support quota for solar power plants with energy storage systems is not merely a tool for stimulating renewable energy, but a mechanism for creating a new class of controllable energy assets. For investors and industrial enterprises, this means a transition from the classic model of “generation for the sake of generation” to a model of energy flexibility with predictable economics and market integration.

Successful case: Legal Issues of Installing a Solar Power Plant (SPP): Investor Agreement

Electricity Generation License: Practical Aspect

In the field of industrial generation, there is a common simplified interpretation that an electricity generation license is not mandatory for facilities with a capacity of up to 5 MW. Indeed, in certain cases, the legislation allows activity without a license, in particular when electricity is used exclusively for own consumption or is sold without the use of special support mechanisms, as expressly provided in the first paragraph of clause 1.3 of the Licensing Conditions.

However, this approach changes significantly when the facility participates in state mechanisms for stimulating renewable energy.

When a License Becomes Mandatory

Obtaining an electricity generation license is mandatory in cases where a business entity:

• plans to participate in green auctions;
• claims the right to receive a market premium;
• implements a project within a support quota, including the 10% quota for solar power plants with energy storage systems;
• sells electricity under regulated support mechanisms.

If an electricity producer participates in a state support mechanism, in particular within the auction-based distribution of a quota, including the 10% quota for solar power plants with energy storage systems, such activity may acquire the characteristics of a licensed activity regardless of the installed capacity of the facility. This is not due to the quota itself as a distribution instrument, but to the fact that electricity is sold at the auction price within the support mechanism, which falls under the regulation of the NEURC Licensing Conditions provided for in the second paragraph of clause 1.3 of the Licensing Conditions.

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License and Energy Storage Systems

As mentioned above, an important feature of the current regulation is that energy storage systems, or ESS, operating as part of a solar power plant do not require a separate license. Under the approach established in the NEURC Licensing Conditions, such systems are regarded as a technologically connected component of the generating facility. Therefore, their operation is covered by the electricity generation license, which is directly confirmed by the clarification of the Committee on Energy, Housing and Utilities Services.

However, there are clear requirements for the legal formalization of such systems within a single license. The license applicant additionally submits documents confirming the technical integration and lawful operation of the energy storage systems within the electricity generation license.

In particular, under clause 1.7 of the Licensing Conditions, the document package includes:

• copies of technical passports for the equipment or other documents confirming the installed capacity of the energy storage system;
• a connection diagram showing the connection of the energy storage system to the electricity network and commercial metering points;
• a document confirming the facility’s readiness for operation, which, if an energy storage system is present, must contain the relevant technical indicators and the scheme of its integration;
• confirmation from the transmission system operator or distribution system operator that the use of the energy storage system complies with the requirements of the Law of Ukraine “On the Electricity Market”.

These requirements are aimed at ensuring transparent electricity metering and eliminating the risk of the energy storage system operating independently outside the scope of the licensed activity.

Practical Consequences for Investors Working with Quotas

Participation in state support mechanisms means that the facility enters a regulated environment, which includes:

• mandatory licensing of electricity generation;
• use of commercial metering systems, namely automated commercial electricity metering systems;
• regular reporting to NEURC;
• compliance with requirements for the targeted use of energy, in particular for energy storage systems.

Thus, regardless of the scale of the project, the key factor is not the facility’s capacity, but its market participation model, whether it operates on the general market or, as relevant to this article, within a state support mechanism.

An electricity generation license is not a universal requirement for all small solar power plants. However, it becomes a mandatory prerequisite for any project that seeks to participate in state support mechanisms, including the 10% quota for solar power plants with energy storage systems.

Why Legal Support Is Necessary for SPP and ESS Projects

Licensing electricity generation, especially in combination with energy storage systems, is a procedure with a high level of regulatory detail and a significant number of technical and legal requirements.

In practice, the key risks arise not at the stage of submitting the application, but when forming the document package and determining the legal model of the facility. Errors in connection diagrams, incorrect presentation of the energy storage system, or inconsistency of data with the Licensing Conditions may lead to refusal to issue the license or delay the procedure.

Legal support in such projects makes it possible to ensure:

• proper qualification of the activity already at the planning stage;
• compliance of documents with NEURC requirements;
• minimization of the risks of refusal or return of documents for revision;
• coordination of the technical and legal parts of the project.

Legal Services for Electricity Licensing and Project Support

Our legal team supports the full cycle of obtaining an electricity generation license in Ukraine, from the initial consultation to the entry being made in the NEURC register. As part of the service, we:

• analyze your documents for compliance with licensing requirements;
• prepare the full package of documents for obtaining the license and submit it to NEURC;
• support the review of documents by NEURC and communication with the regulator;
• provide payment details for the license fee;
• obtain and provide the client with a copy of the decision to issue the license, if necessary.

If needed, we also provide:

• support with the development of a website for the electricity generation company;
• further registration of the producer as a participant in the electricity market and support of its activities.

The transition to controllable generation is your step toward creating next-generation energy assets. Contact us, and we will help make this path transparent, lawful, and as efficient as possible for your business.