The Ministry of Energy has already submitted to the Government the relevant amendments that will enable the conclusion of Power Purchase Agreements (PPAs) between electricity producers and consumers. This was announced by First Deputy Prime Minister of Ukraine – Minister of Energy Denys Shmyhal on his Telegram channel.

“We continue creating systemic conditions for the development of distributed generation in Ukraine. We are launching the introduction of Power Purchase Agreements (PPAs). These are direct electricity purchase agreements concluded directly between an electricity producer and a consumer. Enterprises will be able to secure the electricity they need, while producers will gain opportunities to build generating capacities directly near production facilities and have a stable market for electricity sales,” Denys Shmyhal emphasized.

According to him, businesses will benefit from predictable pricing and operational stability, while the state will gain reduced pressure on the power system and increased regional energy resilience.

Denys Shmyhal also announced additional incentives initiated by the Ministry of Energy: consumers covering at least 60% of their electricity consumption through purchases from distributed generation facilities will not be subject to electricity supply restrictions during periods of capacity shortages in the country.

“In practice, this creates a clear incentive: for enterprises and other consumers — to transition more actively to local generation, and for industry businesses — to invest in new gas-piston and gas-turbine units already now. Our objective is to ensure that electricity is generated closer to consumers in order to reduce the risk of outages caused by network damage. We continue to work consistently in this direction,” the Minister of Energy stated.