First Deputy Prime Minister of Ukraine and Minister of Energy Denys Shmyhal held a third working meeting with representatives of the gas generation business, during which the participants reviewed the results achieved over the past week and outlined further steps.

According to Denys Shmyhal, tangible progress has already been made in establishing a predictable market environment. The regulator has approved new, more realistic price caps for the day-ahead, intraday, and balancing markets. These will come into effect on 1 May and are expected to improve the economic viability of gas generation.

Particular attention was devoted to updated rules for competitive tenders for the construction of new generation capacity.

“We are interested in attracting strong market players and implementing concrete projects where they are most needed. In particular, in line with the Government’s decision, 1,322 MW of new capacity will be put out to tender for the eastern, central, and southern regions. As a state support mechanism, we propose a market premium model. This is a modern European instrument that guarantees a minimum level of revenue while preserving competition,” Denys Shmyhal emphasized.

The meeting also addressed the establishment of systematic cooperation between businesses and Naftogaz. This includes market-based gas supply conditions, options for price fixation over different periods, and risk hedging instruments. These measures will enable companies to better manage costs and reduce exposure to price volatility.

“We also have the opportunity to introduce new market mechanisms, including additional capacity services. A key prerequisite is the law on market coupling signed by the President, which opens the way for deeper integration with European electricity markets. We will continue working to establish clear, transparent, and equitable rules to stabilize the market and strengthen the energy system,” the Minister concluded.