New Tender for Power Generation Projects Opens
The Ukrainian government has announced a competitive tender to build new electricity generation facilities with a combined capacity exceeding 1.3 GW. Under the plan, 1,322 MW will be constructed in regions facing energy shortages. Specifically, 872 MW are slated for the Sumy, Kharkiv, and Poltava areas; 250 MW for Kyiv and Cherkasy regions; and 100 MW each for Dnipropetrovsk and Odesa oblasts.
The first phase of the tender concluded at the end of last year, with submitted projects totaling 78.1 MW. For the second phase, the rules have been updated: each facility must provide a guaranteed capacity of at least 10 MW and be equipped with a second level of protection. Participants may submit applications within three months after the documentation is published.
Construction Timeline and Financial Incentives
Construction of the new generation units is expected to begin in late November, with all planned capacity scheduled to be operational by the end of 2027. The program includes financial support through a market premium mechanism, offering up to 27.92 euro cents per kWh for five years after a facility becomes operational.
Prime Minister Denys Shmyhal emphasized that the initiative will reduce strain on the electricity transmission system and make the targeted regions more energy-resilient and self-sufficient. He noted that business feedback was incorporated into the updated rules for the second phase.
“The winner also commits to building the required capacity within clearly defined deadlines, while the state provides the necessary incentives and conditions,” said Denys Shmyhal.
Additionally, the Cabinet of Ministers is moving to establish a national reserve of autonomous generation capacity, aimed at strengthening the country's energy security.
This tender represents a critical step in improving Ukraine's energy infrastructure amid an ongoing energy crisis. The project seeks not only to boost overall generation capacity but also to enhance the energy independence of regions most in need of additional resources. The updated tender rules, which emphasize reliability and safety, reflect the government's commitment to stabilizing the energy market. By involving the private sector through a market premium mechanism, the initiative is also expected to spur investment in this strategic sector.
As the government pushes forward with its latest tender for new power generation, it is crucial to note the pressing timeline for energy capacity development. With a demand for 6 GW of capacity mandated before winter, the urgency to enhance the energy infrastructure has never been greater. This parallel initiative underscores the government's commitment to ensuring energy security across the nation.