π In 2024, Ukraine's energy sector faced severe challenges due to the ongoing war, losing over 9 GW of generating capacity at power plants. This resulted in a 35% electricity deficit. To address this, the Ukrainian government has introduced subsidies for constructing new flexible power plants under competitive procedures outlined in Article 29 of the Law "On the Electricity Market."
βοΈ On August 13, 2024, the Cabinet of Ministers adopted Resolution No. 756-r, launching preparations for a competition to develop new generating capacities. By January 10, 2024, NEK Ukrenergo presented the conditions to market participants, paving the way for proposals.
π Support Conditions
Winners of the competition will receive significant financial backing, including reimbursement of construction costs of up to β¬854,977.5 per MW. Conditions include:
π Signing a service contract with NEK Ukrenergo.
π Building and commissioning power plants by December 31, 2027.
π Operating in balancing or ancillary service markets.
π Receiving equal monthly payments for 10 years after commissioning.
π Eligibility Criteria
Participants must demonstrate:
π Experience in building or upgrading power plants of at least 20 MW.
π Stable financial standing, sufficient turnover, and no outstanding debts to the state or NEK Ukrenergo.
π Participants can partner with subcontractors or guarantors if needed.
β Project Requirements
Eligible projects must:
π Have a capacity of 5β80 MW (potentially 1 MW, pending final decisions).
π Use equipment manufactured after January 1, 2023, with a minimum 20-year service life.
π Meet technical and operational standards, including backup fuel capability and engineering protection systems.
π Application Process
π Applications must be submitted by February 28, 2024, with documents in Ukrainian and English. Requirements include:
π A technical project proposal.
π Proof of land ownership or usage rights.
π Payment of a β¬100,000 guarantee fee plus β¬1,000 per MW of proposed capacity.
β° The competition will have two stages:
π Qualification (by April 5, 2025) to assess eligibility.
π Evaluation of price proposals (by April 15, 2025) to allocate 700 MW of support quotas.
π Quotas include 500 MW for priority regions (Kyiv, Kharkiv, Odesa, etc.) and 200 MW for non-priority areas (Western Ukraine).
π Looking Ahead
If successful, this initiative could become a cornerstone for attracting further investments, strengthening Ukraineβs energy security.
ποΈβπ¨οΈ Source: https://lnkd.in/gZzCSSHg
