The Cabinet of Ministers of Ukraine is starting a competition for the construction of new generating capacities totaling 1.3 GW to strengthen the resilience of the energy system and compensate for the electricity deficit following Russia’s devastating attacks on critical energy infrastructure.
This is reported by Finway
Distribution of capacities and competition conditions
According to the approved plans, new facilities will be established in regions of Ukraine that have the most acute need for additional generation. In particular, 250 MW is planned for the Kyiv and Cherkasy regions, 872 MW for the Sumy, Kharkiv, and Poltava regions, and 100 MW each for Dnipropetrovsk and Odesa regions.
Competition participants will be able to submit their proposals within three months from the announcement by the Ministry of Energy. A stimulating mechanism is provided for participating companies:
“A stimulating mechanism is provided for participants: the payment for the service of ensuring the development of generating capacities will be up to 27.92 euro cents per 1 kWh for 5 years after the facility is put into operation,” noted the head of the government.
New requirements and support for the energy sector
The commissioning of new capacities must occur no later than 20 months after the signing of contracts. Special attention is given to the requirements for the engineering protection of energy facilities to enhance the security of energy infrastructure.
First Deputy Prime Minister, Minister of Energy Denys Shmyhal noted that last year the first stage of the competition was completed, resulting in businesses guaranteeing the implementation of projects totaling 78.1 MW. For the second stage, the government improved the rules, taking into account business proposals: now each new facility must have a guaranteed capacity of at least 10 MW and be equipped with a second level of protection.
It is expected that all new generating facilities will be put into operation by the end of 2027. At the same time, Ukraine received additional support — Italy and the Secretariat of the Energy Community signed an agreement to allocate 10 million euros to the Fund for the Support of Ukraine’s Energy Sector.