Experts Propose New Energy Generation Model for Communities in Ukraine

Recently, analysts from the Ukraine Facility Platform (UAFP) unveiled a new energy generation model that could significantly improve the energy situation in Ukraine. They believe the greatest potential lies in utilizing existing municipal networks, enabling communities to quickly launch their own generation without the need for legislative changes or costly new connections.

Experts propose the 'active consumer' model, which allows businesses to install small power plants and energy storage systems directly on the premises of water utilities, heat and power companies, transport depots, and other municipal enterprises. According to their calculations, this could be implemented as early as the winter of 2026-2027, which is crucial for ensuring the stability of energy supply in the country.

In their analytical note, UAFP explains why this approach could represent the first real step towards a new architecture for Ukraine's energy system. According to data from Ukrenergo, Ukraine needs to add 9.5 GW of new capacity over the next ten years. During the winter of 2025-2026, the electricity deficit reached 4.5-4.7 GW, and in February 2026, during severe frosts, up to 10 million people were left without electricity simultaneously.

The 'active consumer' model operates as follows: businesses can set up generation capacity of up to 5 MW on the internal networks of a municipal enterprise, which becomes an 'active consumer.' All produced electricity is sold to this enterprise under a contract, and any surplus can be sold back to the grid. Importantly, no licenses for production or sale are required, and there are no tariffs for transmission and distribution of electricity for self-generated power.

Experts have also identified which specific units can be connected and the timeframes involved. For example, a solar power plant can be connected within three months, a gas piston unit within six months, and an energy storage system also within six months. Biogas or biomass cogeneration units can be connected depending on fuel logistics.

These facilities connect to existing connection points of municipal enterprises, which avoids the need for building new networks and incurring costs for connection capacity. This also allows for the commissioning of equipment that is currently idle, and according to UAFP's estimates, this could amount to about 900 MW of donor equipment across communities.

A striking example of the implementation of this model is the city of Kamianets-Podilskyi in the Khmelnytskyi region, where 2 MW of new generation and 8-18 MW of energy storage can be installed based on one municipal enterprise, Miskteplovodenerhiya. In Lviv, at 40 sites of five municipal enterprises, the potential reaches 15 MW of new generation and 45-90 MW of storage, which will ensure critical infrastructure even during power outages.

For businesses, this model offers ready-made sites, savings on capital expenditures, guaranteed purchase of all electricity, and faster payback periods. For communities, it means energizing water utilities and heat and power companies in winter, reducing costs for municipal enterprises, attracting private investments, and quickly launching donor equipment.

UAFP emphasizes that the 'active consumer' model is not only a preparation for the upcoming winter but also the first effective step towards decentralized generation around communities. Initially utilizing existing networks, and later through full integration of businesses into the energy market. If communities and the government take advantage of these quick solutions now, hundreds of megawatts of small-scale generation can be launched within six months, significantly enhancing the resilience of Ukraine's energy system.