Turning point: Ukraine has approved a regulatory framework to quicken investment in new power generation and energy storage facilities.

The National Commission for Regulation of the Energy Market (NERC) adopted a resolution to introduce special auctions for auxiliary services to provide frequency regulation and active power reserves in the power system.

As noted by the director of the energy markets department, Ilya Sydorov, this decision will promote investment in maneuverable capacities and energy storage systems (ESS) and stimulate the development of competition in the auxiliary services market.

According to DTEK manager Vadym Utkin, the introduction of long-term auctions will accelerate the construction of new generating capacity.

Chairman of the management board of Ukrenergo Volodymyr Kudrytskyi emphasized that adopting this decision could become a turning point in the development of not only ESS but also for balancing power generation in the country. Long-term contracts for auxiliary services will allow the acquisition of bank loans and ensure a decent return on these projects, Kudrytskyi added.