Ukraine’s parliament passes law on sustainable transformation of country’s energy sector

January 15, 2025
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Illustration: UNDP in Ukraine

Kyiv, 15 January 2025 – The Verkhovna Rada, Ukraine’s parliament has adopted Law No. 9381, which lays the foundations for restoring and strengthening the country’s energy system. 

The law was drafted with expert support from UNDP Green Energy Recovery Programme in Ukraine – in particular with regard to simplifying regulatory procedures and stimulating investments in a decentralized and sustainable energy sector.

The new law’s key provisions are designed to:

  • promote the development of a distributed energy system, which is more resilient in wartime conditions;
  • simplify the connection of new power generation capacities, including renewable energy sources;
  • stimulate investments by increasing the transparency and predictability of energy projects.

Andriy Gerus, Head of the Verkhovna Rada Committee on Energy, Housing, and Utilities, said: “The newly adopted Law No. 9381 is critically important for Ukraine’s energy sector—it creates new opportunities for enhancing energy resilience through the development of distributed generation and stimulates investment in new generating capacities by increasing the transparency of network operators, introducing capacity reservation mechanisms, and other progressive innovations,” stated Gerus. “The law encompasses both the standards developed by the Committee for the development of distributed generation and norms that address the debt issues in the electricity market. The success of this document will also depend on how clearly it is implemented by both public and private market participants, as well as governmental bodies. The Parliament will closely monitor the practical implementation of the law once it comes into effect. I express my gratitude to UNDP for their expert support, which significantly refined and improved the draft law.”

Jaco Cilliers, UNDP Resident Representative to Ukraine, added: “UNDP’s expert support, in partnership with the government and businesses, in developing this law is an example of effective collaboration, without which systemic change would be impossible. The ongoing energy crisis due to the war aftermath requires innovative and well-balanced solutions. These steps will form the foundation for strengthening Ukraine’s energy independence and sustainable development.” 

“The adoption of this law is a major victory for Ukraine on its path to green energy recovery. It will support the development of distributed generation, attract investments in renewable energy, and facilitate the country’s green energy transition. We will continue to provide expert support to ensure the law’s effective implementation and the achievement of its goals.”

Background:

The UNDP Green Energy Recovery Programme in Ukraine, supported by international partners, addresses Ukraine’s urgent energy needs during the ongoing attacks on critical energy infrastructure. It focuses on two main priorities: ensuring the continuous operation of critical energy infrastructure and production capacities, and implementing strategic actions to accelerate the transition to green energy, particularly through a decentralized energy generation system. The activities of the Green Energy Recovery Programme in Ukraine are funded by the governments of Japan, Norway, Sweden, Denmark, the Republic of Korea, Belgium, Germany, and Iceland.

UNDP is the leading United Nations organization fighting to end the injustices of poverty, inequality, and climate change. Working with a broad network of experts and partners in 170 countries, UNDP helps nations to build integrated, lasting solutions for people and planet.

Media enquiries: 

Yuliia Samus, UNDP Ukraine Head of Communications. Email: yuliia.samus@undp.org