The Evolution of the Battery Energy Storage Systems in Ukraine

Ukraine’s energy sector has experienced a significant transformation as the war revealed long-standing structural vulnerabilities and hastened the need for swift regulatory action. In this context, the authorities acted decisively to implement a modern framework for energy storage, recognising that flexibility had become a vital component of system security rather than a distant goal. The adoption of the Energy Storage Facilities Law, followed by detailed NEURC regulations, effectively established storage as an independent market participant with full access to all wholesale market segments. These measures provided legal certainty for investors at a time when the system was under unprecedented operational pressure.

A key turning point occurred when Ukrenergo decided to use the existing ancillary-services market as the primary channel for long-term procurement. The five-year, euro-denominated contracts for FCR and aFRR established a stable revenue environment without creating a separate capacity market, enabling new technologies to enter the system quickly during a period of urgent need. The combination of severe supply shortages, volatile wholesale prices, and rapid growth in solar generation has further

Learn more about the evolution of the battery energy storage systems in Ukraine by accessing the latest ERRA Regulatory Story of the Quarter below.