On 23 June 2026, the President of Ukraine signed the new Law of Ukraine “On Public Procurement” No. 4888-IX (Public Procurement Law), introducing a significant change to the procurement regime applicable to the construction of transmission grid connection infrastructure.
The reform is expected to accelerate the connection of new power generation projects to Ukraine’s transmission system by allowing connection customers to choose contractors for construction of external interconnection, replacing the previous model under which the transmission system operator (TSO) was responsible for selecting contractors on a competitive basis.
The new rules will apply to transmission system connections (i.e. high voltage connections of 220kV and above) while the existing framework for distribution system connections remains unchanged.
The Public Procurement Law is available at this link in Ukrainian.
Key Takeaways
The main points of the new Public Procurement Law include the following:
- Customers connecting to the transmission system will be entitled to select contractors for the construction of external interconnection facilities.
- Selected contractors must possess the permits and qualifications required to perform the relevant works.
- The procurement procedure will be governed by the terms of the interconnection agreement concluded with the TSO.
- The new rules will become fully operational once secondary legislation and the standard interconnection agreements are updated.
- The reforms contained in the law are expected to reduce delays in implementing high-voltage grid connection projects.
Overview
Previous framework
Under the previous legislation, construction, reconstruction and technical modernisation of the external transmission infrastructure required for connecting a customer’s electrical installation to the transmission grid must be procured by the TSO through a competitive procurement procedure.
Although intended to ensure transparency, this approach frequently resulted in lengthy procurement processes that delayed implementation of connection works and postponed commissioning of new generation facilities.
Key legislative changes
The Public Procurement Law introduces a new procurement model for transmission system connections by amending Article 21 of the Law of Ukraine “On Electricity Market”.
Under the new framework:
- the customer requesting connection to the transmission system may independently select the contractor responsible for the construction, installation and commissioning works relating to external interconnection facilities up to the connection point;
- the selected contractor must be duly authorised and qualified to perform the relevant scope of works; and
- the detailed procurement procedure will be governed by the provisions of the interconnection agreement between the customer and the TSO.
Expected regulatory implementation
The introduced amendments establish only a general framework for the new procurement model.
The National Energy and Utilities Regulatory Commission (NEURC) is expected to amend the standard form of the transmission system interconnection agreement before the new rules go into effect. These amendments are likely to regulate the following:
- the contractor selection procedure;
- coordination between the TSO, the customer and the selected EPC contractor;
- technical supervision and quality control;
- transfer and acceptance of completed assets; and
- commissioning procedures for newly constructed infrastructure.
Until these implementing documents are adopted, many of the details of the new mechanism remain uncertain.
Practical implications for investors
The amendments are expected to improve the efficiency of transmission grid connection procedures by giving project developers greater control over the construction process and reducing dependence on the TSO’s procurement timetable.
For investors developing utility-scale renewable energy projects, battery energy storage systems and other generation facilities connected to the transmission network, the new law may significantly shorten the period between execution of the interconnection agreement and physical connection to the grid.
The effectiveness of the new framework, however, will depend on the secondary legislation and revised standard interconnection agreements that the NEURC adopts. Until those documents are available, important questions remain regarding pricing alignment, coordination of construction works, allocation of responsibilities and the procedures for handover, acceptance and commissioning of the completed infrastructure.
Market participants should continue monitoring these developments.
Conclusion
The new procurement model represents an important step towards streamlining the development of transmission grid infrastructure in Ukraine. By allowing customers to appoint their own contractors, the new regulations address one of the principal causes of delays in high-voltage grid connections and improve implementation timelines for large-scale energy projects.
The commercial impact of the amendments, however, will depend on the implementation of the new framework through secondary legislation.
For more information on these tenders, contact your CMS client partner or the CMS experts who contributed to this article.
