New Generation: The government has updated the competition rules
3 April 14:54
The government has adopted two decisions that will help secure new power generation capacity and pave the way for the development of renewable energy and the attraction of investment.
This was announced by Energy Minister Denys Shmyhal, according to "Komersant Ukrainian".
“At the initiative of the Ministry of Energy, the government has adopted two important decisions in this area,” he wrote on Telegram.
Specifically, the government is updating the rules for the tender to build new power generation capacity. The changes include more market-driven logic, simpler participation requirements, regional lots, and a clearer alignment of new capacity with the system’s actual needs during peak hours.
“This decision is about reserves, flexibility, and the reliability of electricity supply. The pilot tender showed that there is investor interest. Therefore, we are making this mechanism more effective and larger in scale,” Shmyhal explained.
The next step will be to announce a tender for the construction of over 1 GW of new generation capacity.
The government is also updating the auction rules for allocating renewable energy support quotas for 2026 and setting targets for the coming years.
For 2026, this amounts to a 330 MW quota: 250 MW for wind, 33 MW for solar, and 47 MW for other types of renewable energy.
According to the Minister of Energy, this essentially reflects the European approach to supporting renewable energy: competitive auctions, a market premium, and more transparent rules for investors.
“In the logic of our ‘energy honeycomb’ model, these two decisions work together,” Shmyhal noted.
While one decision helps the system secure new generation capacity where it is most needed for stability, the other opens a more predictable market pathway for the development of renewable energy and the attraction of investment, he explained.
