There are no preferences for energy storages in the legislation of the EU – the lawyer

European legislative logic does not provide incentives for energy storages and emphasizes the principle of unbundling. There are problems with this in Ukrainian law. In addition, the adoption of the law was much delayed.

Tetiana Mylenka, adviser to Hillmont Partners, head of energy practice, said it during the forum “Balancing the power grid and energy storage system”, organized by Energy-Club.

She recalled that the Fourth Energy Package was adopted in European legislation, it replaces the Third regarding the rules on the domestic energy market. Ukraine has not yet been given the obligation to implement the Fourth Energy Package, but this is what market participants and specialists are preparing for. Lawyers, in particular, are preparing the legislative framework.

“It makes sense to implement these regulatory provisions at the level of regulations, which should already be developed”, she said.

The directive is a large system document governing not only energy storages. But there are separate articles that relate specifically to the powers of transmission system operators.

2 draft laws on electricity storages have been proposed in Ukraine. But there are comments to them.

“It's important to start with the basics — the right terminology. These are the basic things of lawmaking, but for some reason there was no proper attention to this issue in either one or the other draft law”, Mylenka said.

She highlighted the main principles and concepts of regulation from the point of view of Europeans, in particular the principle of unbundling.

“The distribution system operator and the transmission system operator cannot own, use, develop, operate storage systems. There are exceptions, they are clearly spelled out. But regardless of technical issues, at the level of the spirit of the law, the principles of unbundling should be implemented”, said the lawyer.

The expert also called the principle of technological neutrality important. It is about innovations, legislative support and stimulation of these innovations.

“The European legislation does not mention incentive special preferences for energy storages even at the stage of market launch”, she said.

In her opinion, the processes and teams that work in Ukraine on legislation regarding electricity storages are quite “blurred”. It is important that policymakers pay more attention to the process of developing an optimal regulatory framework because “we have no time to wait”.

Ukrenergo proposed to allow regional gas distribution companies to build energy storages and develop ways to stimulate investment in energy storages.

Tags: legislation, electricity, EU, electricity market, energy storage, unbundling, energy storage

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