Regions across Ukraine continue active preparations for the upcoming heating season and are expanding distributed gas-fired generation capacities to strengthen energy independence, ensure the operation of critical infrastructure, and support industrial consumers.
According to First Deputy Prime Minister of Ukraine – Minister of Energy of Ukraine Denys Shmyhal, the total installed capacity of all commissioned distributed generation facilities in Ukraine has reached 1,806.3 MW. The leading regions are Kyiv Region (212.3 MW) and Cherkasy Region (124.6 MW).
He noted that over the past three and a half months alone, regions have commissioned an additional 338.7 MW of capacity, with the largest increases recorded in Kyiv Region, Zhytomyr Region, and the city of Kyiv.
"Construction is currently underway for 249 generation units with a combined capacity of 522.8 MW. Most of these projects are expected to be completed between September and November this year," the Minister of Energy emphasized.
Denys Shmyhal noted that the Ministry of Energy continues to improve conditions for the development of distributed gas-fired generation and expressed gratitude to all stakeholders for their constructive dialogue and willingness to cooperate in strengthening the resilience of Ukraine’s power system.
As a reminder, significant steps have already been taken to support the development of distributed gas-fired generation in Ukraine, including the introduction of:
- Direct Power Purchase Agreements (PPAs) — direct electricity supply contracts between producers and consumers without mandatory electronic auctions. This mechanism allows enterprises to secure electricity supply while enabling producers to build generation facilities close to consumption sites and benefit from a stable market for electricity sales;
- Additional incentives for consumers and investors — consumers covering at least 80% of their electricity demand through purchases from distributed generation facilities will be exempt from electricity supply restrictions during periods of capacity shortages. The Ministry of Energy has prepared the necessary regulatory changes, which are expected to be adopted shortly.
Additional measures already adopted or under implementation include:
- revised approaches to electricity market price caps, allowing distributed generation facilities to operate during peak shortage periods even when purchasing gas at market prices;
- exemption from gas distribution charges in cases of damage caused by hostilities;
- abolition of the penalty coefficient for exceeding contracted gas capacity. Until the end of 2026, electricity producers participating in the balancing market will have an annual gas capacity exceedance coefficient of 1, without penalty multiplication;
- easing restrictions within protection zones of trunk gas pipelines by simplifying approval procedures for the placement of generation units and equipment within such areas.
