First Deputy Prime Minister – Minister of Energy of Ukraine Denys Shmyhal took part in the New Generation 2.0 Forum, where he announced the launch of the tender for the construction of 1.5 GW of new highly flexible gas-fired generation capacity.

The tender will be conducted under an updated model featuring broader use of market-based support mechanisms, regional lots tailored to the energy needs of individual regions, and simplified participation requirements for investors.

According to First Deputy Prime Minister – Minister of Energy of Ukraine Denys Shmyhal, the state will compensate investors for the potential difference between the market price of electricity and peak-hour prices. In addition, work is underway on a war risk insurance mechanism that will provide compensation in the event of damage to or destruction of energy equipment caused by hostilities.

The necessary regulatory and legislative changes have also been developed to simplify the connection of new generation facilities to electricity transmission and distribution networks. These include the introduction of flexible grid connection mechanisms and cable pooling, as well as planned measures to release reserved grid capacity tied to unimplemented connection agreements and to eliminate the requirement for feasibility studies for generation facilities with a capacity of 20 MW or more connecting to distribution networks.

The Minister noted that several important decisions to support new generation development have already been adopted in recent months, including:

• increasing the renewable energy support quota for 2026 to 1 GW;
• introducing long-term electricity contracts for businesses;
• simplifying the conclusion of Power Purchase Agreements (PPAs);
• reducing the financial burden on investors;
• introducing additional incentives for businesses that meet at least 80% of their electricity demand through direct contracts with distributed generation facilities.

Denys Shmyhal also announced that work is underway jointly with the World Bank on a new Energy Strategy of Ukraine.

"I would like to thank the World Bank team for this important work. We are also working with the EBRD and other international financial institutions to attract financing for settling the accumulated imbalance market debt. I thank the EBRD, all our partners, businesses, the banking community, and investors for their solidarity and support. I invite everyone to become part of a major success story for both Ukraine and Europe," added First Deputy Prime Minister – Minister of Energy of Ukraine Denys Shmyhal.