Special cases of third-party participation in the mechanism of self-production of electricity under Ukrainian law

The mechanism of self-production of electricity is one of the models of distributed generation in the electricity market, the development of which is an important factor in achieving energy sustainability and security in Ukraine. Due to the novelty of the regulatory provisions, there are no legal studies of special cases of third-party participation in the self-production mechanism. The purpose of the study is to identify the peculiarities of legal regulation of special cases of third-party participation in the self-production mechanism. Cases have been identified and the peculiarities of legal regulation by special norms of relations in the self-production mechanism with the participation of third parties under Ukrainian law have been highlighted. It has been determined that prior to the transfer of ownership rights to property created (established) under an energy service contract to the customer, such rights belong to the contractor under this contract, and the subject composition of the legal relationship of the self-production mechanism includes the customer as an active consumer and the contractor as a third party. After the transfer of ownership rights to electrical installations to the customer, the customer remains an active consumer, but the participation of a third party in the legal relations of the self-production mechanism ceases. The specific characteristics of third parties, which are economic entities that generate electricity from alternative energy sources at a ‘green’ tariff, are formulated. The characteristics of legal relations in the self-production mechanism involving third parties in relations with state-owned and municipal enterprises, institutions and organisations as active consumers, and the peculiarities of the legal regulation of these relations are outlined. The balance holder of state and municipal property must comply with the conditions for participation in the mechanism of self-production of electricity, as defined in Article 58-1 of the Law of Ukraine ‘On the Electricity Market’, including the obligation to conclude a contract with the electricity supplier for the sale and purchase of electricity under the self-production mechanism and to acquire the status of an active consumer.

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Publication Details

Journal
Uzhhorod National University Herald Series Law
Published
2025-10-14
DOI
https://doi.org/10.24144/2307-3322.2025.90.2.44
Primary Topic
European and International Law Studies
Type
article
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article

Special cases of third-party participation in the mechanism of self-production of electricity under Ukrainian law

P. Povar
Uzhhorod National University Herald Series Law
European and International Law Studies
article

Special cases of third-party participation in the mechanism of self-production of electricity under Ukrainian law

P. Povar
article en

Abstract

The mechanism of self-production of electricity is one of the models of distributed generation in the electricity market, the development of which is an important factor in achieving energy sustainability and security in Ukraine. Due to the novelty of the regulatory provisions, there are no legal studies of special cases of third-party participation in the self-production mechanism. The purpose of the study is to identify the peculiarities of legal regulation of special cases of third-party participation in the self-production mechanism. Cases have been identified and the peculiarities of legal regulation by special norms of relations in the self-production mechanism with the participation of third parties under Ukrainian law have been highlighted. It has been determined that prior to the transfer of ownership rights to property created (established) under an energy service contract to the customer, such rights belong to the contractor under this contract, and the subject composition of the legal relationship of the self-production mechanism includes the customer as an active consumer and the contractor as a third party. After the transfer of ownership rights to electrical installations to the customer, the customer remains an active consumer, but the participation of a third party in the legal relations of the self-production mechanism ceases. The specific characteristics of third parties, which are economic entities that generate electricity from alternative energy sources at a ‘green’ tariff, are formulated. The characteristics of legal relations in the self-production mechanism involving third parties in relations with state-owned and municipal enterprises, institutions and organisations as active consumers, and the peculiarities of the legal regulation of these relations are outlined. The balance holder of state and municipal property must comply with the conditions for participation in the mechanism of self-production of electricity, as defined in Article 58-1 of the Law of Ukraine ‘On the Electricity Market’, including the obligation to conclude a contract with the electricity supplier for the sale and purchase of electricity under the self-production mechanism and to acquire the status of an active consumer.

Uzhhorod National University Herald Series LawVol. 2(90)
Max Planck Society (DE)
Openalex Percentile: Top 66%
European and International Law Studies
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