Ukraine to Tender 1,322 MW in New Energy Capacity as Denys Shmyhal Aligns Grid with European Standards

Energy Minister Denys Shmyhal announces a 1,322 MW tender for new generation in Ukraine, utilizing a market-premium model aligned with EU standards.

By: AXL Media

Published: Apr 24, 2026, 9:39 AM EDT

Source: Information for this report was sourced from the Interfax Ukraine

Strategic Expansion of Regional Generating Assets

The Ukrainian government is initiating a significant expansion of the national power system by putting 1,322 MW of new generating capacity up for tender. According to First Deputy Prime Minister and Energy Minister Denys Shmyhal, the project will specifically target the eastern, central, and southern regions, where the demand for reliable power is most acute. This development follows a series of high-level consultations with the gas generation sector, focusing on creating a distributed energy network capable of withstanding the operational pressures of the current conflict while ensuring long-term grid stability.

Adopting European Support Models for Private Investment

In a move to modernize state assistance, the Ministry of Energy is implementing a "market premium" model for the new construction projects. This instrument is designed to provide investors with a guaranteed minimum income level while ensuring that market competition remains the primary driver of pricing. Shmyhal noted that this European-style approach is intended to attract "strong players" to the Ukrainian energy market by reducing the financial risks associated with large-scale capital investments in a volatile economic environment.

Liberalizing Price Caps to Bolster Profitability

To further encourage the development of gas-fired generation, the National Energy and Utilities Regulatory Commission (NEURC) has approved a significant adjustment to electricity price caps. Effective May 1, 2026, the maximum price on the day-ahead and intraday markets will be set at 15,000 UAH/MWh, with the balancing market capped at 17,000 UAH/MWh. Shmyhal described these new limits as "more realistic," suggesting that higher caps will provide the necessary financial margins for gas-to-power plants to operate profitably under market conditions.