First Deputy Prime Minister of Ukraine – Minister of Energy Denys Shmyhal discussed with representatives of the cogeneration sector the development of solutions aimed at ensuring the economic viability of projects, attracting investment, and creating clear and predictable market conditions for flexible generation.
Denys Shmyhal noted that gas-fired generation is a priority for Ukraine both during wartime and in the post-war recovery period. During the meeting, participants raised a number of key issues:
- according to business representatives, the current electricity price caps do not cover the actual cost of production for gas generation and do not allow investments to be recouped, thereby constraining the launch of new projects and the development of existing ones;
- there is a need to develop solutions for insuring war-related risks, particularly for facilities being constructed in frontline regions;
- there is demand for state support in ensuring the physical protection of energy infrastructure;
- the need to guarantee operational volumes, simplify connection to the Gas Transmission System Operator (GTSOU) network, and address other related issues.
Participants also discussed incentives for the development of distributed generation, particularly in the eastern and southern regions of the country, in line with the “energy cells” model.
“To this end, the Government has already updated the rules for conducting tenders for the construction of new generation capacity. We will also thoroughly analyze European experience in establishing capacity markets and the practices that can be adapted in Ukraine,” Denys Shmyhal emphasized.
The Minister expressed his appreciation to business representatives for an open and constructive dialogue.
