Ukraine plans to develop 1 GW of new renewable energy capacity: details

28 May 15:53

In 2026, Ukraine announced its readiness to support new energy projects with a total capacity of up to 1 GW. Of this capacity, 700 MW will be allocated to wind power generation and 50 MW to solar power generation.

This was reported by the Ministry of Energy of Ukraine, according to "Komersant Ukrainian".

By 2026, the government is ready to support projects with a total capacity of 1 GW, distributed as follows:

  • 700 MW — wind power.
  • 150 MW — other types of renewable energy, such as biogas, biomass, and small hydropower.
  • 50 MW — solar power generation.
  • 100 MW — solar power plants combined with energy storage systems.

Energy storage systems play a key role by allowing electricity to be stored during periods of surplus and used during peak consumption or shortages. This contributes to the effective balancing of the power grid.

Support Mechanism and Its Benefits

First Deputy Prime Minister of Ukraine and Minister of Energy Denys Shmyhal noted that support for renewable energy sources (RES) will be provided through a market premium mechanism. The state will compensate for the difference between the actual market price of electricity and the price determined by auction results.

“This will encourage the construction of new generation capacity and attract additional private investment into the renewable energy sector. It will also contribute to the formation of a new energy architecture for Ukraine, where the autonomy of regions, territories, communities, and individual facilities is key,” emphasized Denys Shmyhal.

The advantages of this approach include:

  • Promoting fair competition among producers.
  • Reducing the burden on the state and consumers.
  • Ensuring predictability for investors.
  • Creating conditions to attract bank financing and international investment.
  • Accelerating the construction of new energy facilities.

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Auction Schedule and Long-Term Planning

The government has approved an updated schedule for auctions to allocate support quotas for 2026, which are scheduled for September–October. Indicative forecasts for annual support quotas for 2027–2030 have also been established, providing the market with a long-term outlook and allowing investors to plan new projects in Ukraine well in advance.

As a reminder, in 2025, renewable energy sources accounted for 11% of total electricity production in Ukraine.

Last year, private households installed 748 MW of new distributed generation capacity.

Within the structure of electricity production from RES, solar power plants traditionally account for the largest share—78%. Wind power plants account for 12%, facilities generating electricity from biogas and biomass—8%, and small hydropower plants—2%.

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