Ukraine advances implementation of EU’s TEN-E standards for energy infrastructure projects
On 2 February 2026, the Ukrainian Parliament registered Draft Law No. 13450 “On Energy Infrastructure Projects of Public Interest” (Draft Law) for its second and final reading.
The Draft Law implements core principles of Regulation (EU) 2022/869 on guidelines for trans-European energy infrastructure (i.e. the TEN-E Regulation), which sets a framework for priority implementation of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs), aligning electricity, hydrogen, and smart gas network infrastructure across Europe.
The key points of the Draft Law (available at the following link in Ukrainian) include the following:
- Introduction of the “energy infrastructure projects of public interest” (Energy Infrastructure Projects), covering PCIs, PMIs and national projects;
- Selection procedure for designating the Energy Infrastructure Projects;
- Incentives options;
- Definition of the developer eligible to implement Energy Infrastructure Projects;
- Introduction of a “comprehensive decision concept” for streamlining permitting procedure;
- Granting the Ministry of Energy of Ukraine (Ministry of Energy) the additional powers for supervising the Energy Infrastructure Projects;
- Enhanced public participation;
- Additional land allocation possibilities for the Energy Infrastructure Projects.
The following is an overview of the key changes proposed by the Draft Law.
Energy infrastructure projects
The Draft Law introduces the concept of “energy infrastructure project of public interest”.
Under the Draft Law, a project becomes an Energy Infrastructure Project once it is included on the list of Energy Infrastructure Projects approved by the Cabinet of Ministers of Ukraine (List).
The following projects may be included in this List:
- the PCIs between Ukraine and the Contracting Party of the Energy Community, approved by the Ministerial Council of the Energy Community;
- the PMIs between Ukraine and the EU member state, approved by the EU; and
- national projects that contribute to the following goals:
- the sustainable development of Ukraine’s energy infrastructure;
- the reliable and uninterrupted supply of energy resources;
- the integration of Ukraine into the EU’s energy market;
- the development of equal and mutually beneficial relations with other states; and
- the mitigation of climate change impacts.
Selection procedure
PCIs and the PMIs must be included in the List once the Energy Community or the EU adopts the respective decisions. National projects, however, must undergo an additional selection procedure.
The Draft Law also provides that an Energy Infrastructure Project must satisfy at least one of the following criteria, which states that the project must be:
- included in the electricity or gas transmission system development plan for the next ten years;
- included in the electricity distribution system development plan for the next five years;
- included in the gas distribution system development plan for the next ten years;
- included in the gas storage development plan for the next ten years;
- consistent with measures to prevent shortages of generation and transmission capacity as set out in the generating capacity adequacy assessment report, approved by the National Commission for State Regulation of Energy and Public Utilities (NEURC); or
- provided for in another energy infrastructure development document.
The Draft Law does not clarify whether inclusion in the relevant development plan is a pre-condition to qualifying as the Energy Infrastructure Project or if this occurs after a given project is added to the List. The ambiguity should be addressed in the implementing by-laws. Once the Draft Law is adopted, the Cabinet of Ministers of Ukraine must approve the detailed procedure for including eligible projects in the List as well as the detailed selection criteria for national projects.
Incentives
The Draft Law provides incentives to Energy Infrastructure Projects in the form of:
- status of an investment project with significant investments;
- NEURC’s incentives; and
- EU funding.
Depending on the option, an incentive may be combined with other available incentives. Table 1 below illustrates the compatibility of incentive options available for Energy Infrastructure Projects.
See below for a detailed description of each incentive option.
Status of an investment project with significant investment
The Draft Law proposes to make the Energy Infrastructure Projects eligible for the status of an investment project with significant investments under the Law of Ukraine “On State Support of Investment Projects with Significant Investments in Ukraine” (i.e. the Significant Investments Law).
As a result, the developer of the Energy Infrastructure Project may apply for such status in accordance with the Significant Investments Law and benefit from state support allocated to the investment project with significant investments.
The developer may potentially combine the scheme under the Significant Investments Law with EU funding (see item iii below). In this case, the eligibility rules of each specific EU funding programme must be analysed separately to identify potential restrictions or incompatibilities.
The developer, however, should not combine the incentives under the Significant Investments Law with the NEURC incentives described in item ii below.
NEURC’s incentives
Alternatively, NEURC may grant specific incentives to Energy Infrastructure Projects regarding:
- advance investments;
- recognition of efficiently incurred costs before the project is commissioned;
- ensuring additional profitability of the capital invested in the project; and
- other measures designated by the NEURC.
At the same time, a project may not benefit from the NEURC’s incentives if it already enjoys other support schemes available under Ukrainian law (including under item i above) or other NEURC regulations.
The Draft Law is silent on the possibility of combining the NEURC’s incentives with EU funding (item iii below). The uncertainty is expected to be clarified in NEURC secondary legislation.
EU funding
The Draft Law provides that Energy Infrastructure Projects simultaneously having PMI or PCI status may be eligible for EU funding, including:
- the Instrument for Pre-accession Assistance (IPA);
- the Neighbourhood, Development and International Cooperation Instrument (NDICI);
- the Eurasian Fund for Stabilization and Development (EFSD);
- the European Fund for Sustainable Development Plus (EFSD+);
- the Ukraine Facility; and
- the Connecting Europe Facility (CEF).
The Draft Law does not regulate the application, approval or disbursement procedures for such funding. Therefore, developers of the Energy Infrastructure Projects will need to separately assess the rules and timelines of each relevant EU funding instrument.
Eligible developers
The implementation of the Energy Infrastructure Project is carried out by an organiser (i.e. developer).
The Draft Law defines an exhaustive list of entities that can act as developers for the Energy Infrastructure Projects:
- transmission system operator (electricity or gas);
- distribution system operator (electricity or gas);
- gas storage operator;
- LNG operator;
- other infrastructure operators or investors of an energy infrastructure project; and
- entities empowered by multiple operators/investors to act and undertake legal and financial obligations on their behalf. (Because the Draft Law does not set any requirements for such entities, these requirements may be further introduced by the by-laws).
The developer must ensure proper preparation and submission of all materials needed for permitting, organise project financing, and follow the procedures and deadlines established for obtaining the applicable permits. The developer must cooperate with the national competent authority, provide timely information, report on progress, manage public participation, and maintain an up-to-date project website.
Streamlining permitting procedures
To ensure effective interaction between permitting authorities and a project’s developer, the Draft Law introduces the concept of a “comprehensive decision” (Comprehensive Decision).
This concept, derived from the EU’s TEN-E Regulation, establishes a coordinated timetable for issuing all project-related permits. While each permit is issued in accordance with general procedures, the Comprehensive Decision provides legal predictability for the overall permitting timeline.
The Ministry of Energy approves the Comprehensive Decision for each Energy Infrastructure Project. Before being approved, the Comprehensive Decision is reviewed by all authorities involved in issuing the permits covered by the Comprehensive Decision. This procedure will ensure consensus among all stakeholders regarding realistic deadlines for permit issuance.
Once the project commences, the Ministry of Energy monitors compliance by the developer and permitting authorities with the deadlines established in the Comprehensive Decision.
Permitting procedures covered by the Comprehensive Decision are divided into:
- a Preparatory Stage of up to two years; and
- a Final Stage of up to 18 months.
Picture 1 below illustrates the permitting procedures covered by the Comprehensive Decision.
Picture 1. The permitting procedures covered by the Comprehensive Decision.
The total duration should not exceed 42 months with a single possible extension of up to nine months.
Ministry of Energy’s supervision
The Draft Law empowers the Ministry of Energy to act as the national competent authority and coordinate interaction between all governmental bodies involved in the implementation of Energy Infrastructure Projects.
Picture 2 below illustrates the key functions of the Ministry of Energy for Energy Infrastructure Projects.
Picture 2. The key functions of the Ministry of Energy regarding Energy Infrastructure Projects.
A special focus is given to the Ministry of Energy’s supervision of permitting timelines. If any authority fails to provide a required permit or provide comments within the established deadlines, the Ministry of Energy may require:
- a detailed list of comments on the submitted documents; and
- a substantiated revised deadline for issuance of the permit.
The Cabinet of Ministers of Ukraine will also establish an interagency consultative council, chaired by the Ministry of Energy, to further streamline inter-agency coordination.
Enhanced public participation
The Draft Law strengthens public participation requirements.
After the Energy Infrastructure Project is included in the List, the developer has three months to prepare a public participation concept and submit it for approval to the Ministry of Energy.
The public participation concept must include:
- identification of stakeholders, including local communities;
- planned activities, specifying the locations and dates of public consultations; and
- organisational and/or material and technical resources for public consultations.
Before submitting the public participation concept, the developer must hold at least one public hearing and prepare the public participation report highlighting the public’s comments and how the developer has accommodated such comments. The pertinent authorities will take the report into account while approving the Comprehensive Decision.
After the concept is approved by the Ministry of Energy, the developer must continue public engagement by publishing an information booklet, notifying stakeholders, and conducting public consultations.
Land allocation specifics
The Draft Law also allows the developer to request the compulsory acquisition of land plots for public needs where private owners refuse to voluntary sell or lease the land. The compulsory acquisition involves the compulsory purchase of the land plots by competent authorities from private owners, followed by the transfer of such land plots to the developer.
This procedure is governed by the Law of Ukraine “On the Alienation of Land Plots and Other Immovable Property Located Thereon That Are in Private Ownership for Public Needs or on Grounds of Public Necessity”.
In short, the authority has two months to review the application. If approved, negotiations with the landowner will follow. If negotiations fail, the authority may seek compulsory acquisition through court proceedings.
Once the authority purchases the land, this land should be transferred to the developer for the implementation of the Energy Infrastructure Project.
The Draft Law also allows the use of water lands for the Energy Infrastructure Projects implemented by a transmission system operator (electricity or gas), gas storage operator, or an LNG operator.
Conclusion
The Draft Law represents a significant step toward aligning Ukraine’s strategic energy infrastructure planning and permitting framework with EU standards.
If fully adopted, the legislation is expected to accelerate development of cross-border and nationally significant energy projects, reduce administrative delays, and enhance incentives for complex and capital-intensive projects.
The framework will be particularly relevant for transmission system operators (electricity or gas), gas storage and LNG operators, large-scale RES developers with grid-reinforcement needs, cross-border interconnectors, and investors seeking predictable permitting timelines.
For more information, contact your CMS client partner or the CMS experts who contributed to this article: Vitalii Radchenko, Maryna Ilchuk, and Yuliia Pidlisna.
