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HomePublicationsComments on legislationIs it possible to open a company in Ukraine to supply electricity to Europe during the war?

Is it possible to open a company in Ukraine to supply electricity to Europe during the war?

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Today the electricity market in Ukraine is gaining new momentum - the opportunity to supply energy to Europe, preferences, access to new auction platforms - all this encourages entrepreneurs to try their hand at this field.

Today we will give information for foreign investors who want to get a share in the business or start their own business in the field of electricity in Ukraine. What kind of business is profitable today? What is the difference between electricity licenses? What after obtaining a license?

License for the supply of electricity to the consumer

This license allows you to both sell and resell energy. That is, you can buy energy both from the producer and from another supplier, and sell it both to the end consumer and to another supplier. This is one of the most popular licenses, because it gives the greatest scope for activity in the market, and it allows you to trade energy, without the complexities associated with production.

This license can be obtained by both legal and physical persons-entrepreneurs. Normally, we recommend registering a Ukrainian company, in which a foreign investor will be the founder. This also gives additional opportunities for the investor, if he, for example, wants to get a residence permit in Ukraine, or wants to actively develop its business, concluding contracts with other legal entities.

An important feature of preparing for obtaining a license is developing a company website - this is a prerequisite for virtually any type of license to work with electricity. This site will be checked by the commission when checking other documents. Such a site is developed by our programmers in the process of supporting the obtaining of a license.

Important! The means of communication and address of the consumer's office indicated on the website must correspond to the information indicated in the Gazette. In case of discrepancies, the documents will be left without consideration.

License for resale of electric energy 

This license can also be obtained by both a legal entity and an individual entrepreneur. The difference of this license is that the trader does not sell electricity to the end consumer. That is, it is a market participant who tries to make money by buying energy from one supplier at a cheaper price and manages to sell it to another supplier at a higher price.

A certain disadvantage of this type of license is the inability to supply energy to the end consumer. That is why market participants most often obtain a supply license after all. 

License for the production of electricity

Obtaining this type of license makes sense if you plan to open an enterprise for the production of electrical energy in Ukraine. Of course, this is the largest of the aforementioned projects, which requires significant financial investments.

It will require the purchase and installation of power-generating equipment of a certain capacity, and the development of schemes for connecting to the power grid.

You will have to go through a number of procedures to confirm that the facility is ready for operation.

On the other hand, this is the only type of license for which there is no need to develop a site. But you will have to immediately take care of your security in the market as a source of energy for other participants. 

We accompany the work of such clients, including by developing contract templates for them to work in the electricity market, as well as accompanying the process of connection to the grid.

This is not the final list of licenses. They can also differ by the type of energy you work with. There is also a large gas market in Ukraine. We help with business start-ups for all participants in the energy market.

Related article: How to buy a company with a license for electricity in Ukraine?

What do you do after you get the license you need?

The license is only the first step. It is possible to get real access to electricity transactions only after registration as a market participant. And the market is a heterogeneous structure. It consists of sectors (separate markets), each of which has its own rules of the game.

Usually we accompany our clients through the whole procedure and advise them on which sectors they should choose to work in.

A separate part of our work is developing and helping to sign binding contracts in the electricity market. 

For example, concluding an agreement with Ukrenergo. This is an electricity supplier's contract for the provision of electricity transmission services or a contract for the provision of dispatch (operational and technological) management services. 

But these contracts are only part of the procedure of inclusion in the market. There are a number of other contracts, the templates of which you should have at hand to start concluding transactions in the market itself. 

If you want to start your own business in Ukraine, contact us. We are a reliable partner in Ukraine with whom all legal issues can be solved in one place. We offer:

  • Creation of a working business in Ukraine.

  • Obtaining all necessary permits to start a business, including electricity or gas licenses.

  • Consulting on further running of your business in Ukraine.

  • Obtaining Ukrainian residence permit for foreign director or employees you wish to bring to Ukraine for your project.

  • Accounting, staffing, legal support of business in Ukraine.

Find out the cost of starting a business in Ukraine here.

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