Power Generation License: A Legal Guide for Business

Ukraine’s energy system is undergoing the most significant transformation in its history since independence. Decentralized power generation is no longer just a state policy. It has effectively become a key condition for business resilience and industrial survival. For investors and business owners, owning a generation facility is a strategic asset that requires not only technical readiness but also precise legal structuring.

Entering the electricity market in Ukraine requires obtaining a power generation license issued by the National Energy and Utilities Regulatory Commission (NEURC). This license confirms compliance with regulatory requirements and formally recognizes the company as a professional participant in the energy market.

The ongoing shortage of generation capacity remains one of the main challenges for Ukraine’s power system. In response, the state has simplified market entry for new generators through digital procedures and the reduction of certain paper-based requirements. At the same time, regulatory authorities have tightened control over technical reliability and ownership transparency in the energy sector.

In this guide, we explain the current step-by-step process for obtaining a power generation license in Ukraine, based on the applicable Licensing Conditions.

Who Needs a Power Generation License: Legal Analysis Based on Capacity

Who needs a license, and who can operate without one? According to the current version of the NEURC Resolution No. 1467, licensing is required if at least one of the following conditions applies:

• the total installed capacity at a single metering point exceeds 5 MW;
• the total installed capacity across all of your generation sites exceeds 20 MW;
• you plan to operate under the green tariff or sell electricity to the grid through auctions, regardless of capacity.

We discuss this in more detail in our article Power Generation License: When a License Is Mandatory.

When a power generation license is NOT required:

1. Electricity generation exclusively for own consumption, without selling electricity to the grid, with no capacity limits.
2. Use of mobile or autonomous power generation units during the period of martial law and for six months after its termination.

Documents Required for a Power Generation License: What Must Be Submitted

To apply to the N EURC, a complete set of documents certified by the company director must be prepared. The mandatory list includes:

• Application and inventory of documents in accordance with the appendices to the Licensing Conditions. The application must include the license applicant’s details, such as the company name, telephone number, email address, and identification code. It is important to note that the Commission will verify the provided contact details, so prompt responses must be ensured.
• Information on locations and means of activity. This includes the address where the activity is carried out, the EIC code, and detailed data on generation facilities, including type, quantity, capacity, and primary and backup fuel or energy sources.
• Proof of ownership or use rights. Copies of documents confirming ownership, lease, leasing, or management rights, including management through ARMA, for the generation equipment.
• Technical specifications. Copies of technical passports for the equipment indicating installed capacity.
• Connection schemes. A graphical diagram of the connection to power grids indicating metering points and meters.
• Operational readiness. A copy of the document confirming commissioning of the facility, such as a DIAM certificate or equivalent.

New and specific requirements:

• Energy Storage: If you use energy storage systems, you must provide a diagram of their connection and confirmation from the transmission or distribution system operator that they may be used without obtaining a separate energy storage license.
• Anti-corruption and security control. Mandatory disclosure confirming that the business is not controlled by residents of the Russian Federation, recognized as the aggressor state.
• All documents submitted for obtaining the license, as well as those provided when notifying the regulator of license amendments, must be retained for the entire term of the license.

Please note: If the ownership documents already contain detailed information on the composition and technical characteristics of the equipment, the applicant is exempt from the obligation to additionally submit technical passports and proof of commissioning readiness.

Step-by-Step Guide to Submitting an Application for an Electricity Generation License

Step 1: Verify NACE codes and beneficial owners

Make sure that the primary business activity under the NACE classification is 35.11 “Electricity generation,” and that none of the ultimate beneficial owners are persons associated with the aggressor state.

Step 2: Submit the documents

Today, due to the digitalization of public services, the application can be submitted remotely. You may choose the most convenient option:

• Electronic submission (recommended): You can file the application and all required attachments through the Ministry of Economy’s Electronic Services Portal. Authorization is completed using the qualified electronic signature of the company’s director.
• Traditional submission. You may send the full document package by registered mail with an inventory of enclosures to the central office of the National Energy and Utilities Regulatory Commission in Kyiv, or submit the documents in person.

Please note: The same electronic account on the portal is used for mandatory notifications to the Regulator about any changes to licensed data, such as changes in the company name, address, contact email or phone number, director, installed capacity, and other relevant details.

Step 3: Review by the National Energy and Utilities Regulatory Commission

Under the applicable procedure, the application review period is 10 business days. The decision to issue a license is formalized by a resolution that is published on the official website of the National Energy and Utilities Regulatory Commission. As a result, paper licenses are no longer issued. An entry in the state register is sufficient proof of the legality of the activity.

Step 4: Payment of the licensing fee

Within 10 business days from the date the decision to issue the license is adopted, a one-time licensing fee equal to one subsistence minimum must be paid. Failure to pay this fee constitutes grounds for license revocation.

You might also like: Liability for Selling Electricity Without a License: How to Sell Electricity Legally

Legal Assistance in Obtaining a Power Generation License

For investors, a power generation license is a strategic gateway to the energy market. However, navigating bureaucratic procedures independently often results in unnecessary costs and delays. Our team has been providing professional legal support in the energy sector for more than ten years. We help businesses mitigate critical risks that most commonly arise at the document submission stage, including:

• return of documents without review due to errors in connection schemes, equipment parameters, or metering devices;
• delays in market entry, as after obtaining a license it is necessary to complete registration as an electricity market participant, which is mandatory for facilities with capacity exceeding 20 MW.

If you plan to launch an energy facility without legal complications, we invite you to an initial consultation. We will:

• conduct an express audit of your documents;
• provide realistic timelines for obtaining a license for your specific facility;
• offer a clear action plan and a fixed budget;
• support the licensing process on a turnkey basis.

Your energy independence must be legal and secure. Entrust regulatory matters to professionals.

Learn more about electricity generation licensing with us here.