Ukrainian govt boosts new power generation target to 1.5 GW, adding Dnipropetrovsk region projects – minister
The Ukrainian government has increased the volume of new generating capacity to be built under the tender from 1,322 MW to 1,505 MW, raising the quota for Dnipropetrovsk region by 183 MW, First Deputy Prime Minister, Minister of Energy Denys Shmyhal announced.
"The government has amended the conditions for the second stage of the tender for construction of new generation in Ukraine. In particular, it increased the total capacity to be offered under the tender from 1,322 MW to 1,505 MW. The changes are linked to expansion of the regional lot for Dnipropetrovsk region by 183 MW," Shmyhal wrote on Telegram on Tuesday.
He said that the main goal is to strengthen the reliability of power supply to the Dnipro energy hub, minimize any risks in the frontline region, and provide additional reserve capacity for the power system.
In addition, according to him, the Energy Ministry has issued an order establishing a commission to conduct the tender for construction of generating capacity. The commission will be headed by First Deputy Energy Minister Artem Nekrasov, who will soon approve its membership.
NPC Ukrenergo said that the second stage of the tender for the construction of new generating capacity is aimed at overcoming or reducing power shortages in regions where energy infrastructure has suffered the greatest damage from Russian attacks. The company emphasized that a specific share of the new generation capacity volume has been allocated to each region.
Accordingly, based on previous decisions and the latest government resolution, Kyiv and Cherkasy regions have been allocated a quota of 250 MW, Sumy, Kharkiv, and Poltava regions 872 MW, Dnipropetrovsk region 283 MW, and Odesa region 100 MW.
Among other things, Ukrenergo drew attention to the requirement that the minimum operating life of each energy facility must be at least 20 years or 100,000 operating hours. New generating units must also comply with technical requirements designed to facilitate the balancing of Ukraine’s Integrated Power System.
As reported, the total guaranteed capacity of projects backed by businesses under the first stage of the tender, completed at the end of last year, amounted to 78.1 MW. The rules for the second stage have been updated. In particular, each facility must have guaranteed capacity of at least 10 MW and must be equipped with a second level of protection. The winner also assumes the obligation to build the required capacity within strictly defined deadlines.
Winning bidders will receive support under a market premium mechanism in cases where electricity prices during morning and evening peak-load hours fall below the price per MWh determined during the tender process, up to EUR 0.2792 per kWh.
The government expects the entire volume of capacity planned under the second stage of the tender to be commissioned by the end of 2027.