Ukraine Expands Support for New Power Generation: Capacity Auction Increased to 1.5 GW

Ukraine continues to strengthen its energy resilience while creating new opportunities for investment in power generation. The government has increased the capacity available under its competitive procurement program for new generation projects to 1,505 MW, up from the previously announced 1,322 MW.

According to Prime Minister Denys Shmyhal, the additional 183 MW has been allocated to the Dnipropetrovsk region, where additional reserve capacity is needed to ensure a reliable electricity supply.

Why Was the Auction Expanded?

The decision reflects Ukraine’s response to the ongoing challenges facing its power system.

As the country continues to operate under wartime conditions and repeated attacks on critical energy infrastructure, strengthening flexible and reserve generation has become a strategic priority.

The additional 183 MW allocated to the Dnipropetrovsk region is intended to improve the resilience of one of Ukraine’s largest industrial centers, ensuring a more reliable electricity supply for both businesses and local communities.

The Competition Moves into the Implementation Phase

At the same time, the Ministry of Energy has established a dedicated commission to oversee the competitive procurement process for new generation capacity.

The commission will be chaired by First Deputy Minister of Energy Artem Nekrasov and will be responsible for organizing the auction, evaluating bids, and selecting successful projects.

The establishment of the commission marks an important transition from policy planning to the practical implementation of one of Ukraine’s largest power generation investment programs in recent years.

What Does This Mean for Investors?

Increasing the auction volume to 1.5 GW creates additional opportunities for both Ukrainian and international investors.

The program is expected to become one of the country’s largest mechanisms for attracting private capital into the power generation sector.

For market participants, this means:

• greater capacity available for competitive bidding,
• expanded opportunities to develop new power generation projects,
• a more predictable framework for long-term investment,
• increased attractiveness of Ukraine’s power sector for private investors.

The auction is expected to attract significant interest in flexible generation technologies, including gas-fired generation and other fast-ramping solutions capable of responding quickly to fluctuations in electricity demand and supporting grid stability.

Strengthening Ukraine’s Energy Resilience

The government aims to have the full 1.5 GW of new generation capacity commissioned by the end of 2027.

Bringing these projects online will strengthen Ukraine’s energy security, improve the reliability of the power system, and reduce the risk of future electricity shortages.

More broadly, the expanded auction demonstrates that Ukraine is moving beyond repairing damaged infrastructure. The country is investing in a new generation of modern power assets designed to build a more resilient, reliable, and investment-friendly energy system for the future.