NEC "Ukrenergo" is preparing to announce a second competition for new generating capacity and offer potential investors even more attractive conditions compared to the pilot project currently underway, reported supervisory board member Yuri Boyko.
"Interesting changes have been developed for the next competition, as "Ukrenergo" will not stop but will continue to do this regularly until it achieves the appropriate pace of new capacity construction. A new competition will be announced with even more appealing conditions from the investors' perspective," he said during the event "Dialogues with NV: Ukraine Changes the World. What Opportunities Are Opening?" on Wednesday.
According to Boyko, the competition is expected to conclude by the end of spring or early June.
He also noted that the pilot competition, which is accepting applications until February 28, "serves as a stepping stone for the construction of capacity that can potentially operate in base mode."
Boyko further explained that the exclusion of three western regions (Rivnenska, Khmelnytska, and Volynska - ER) from the current competition conditions for the placement of generation facilities is due to technical issues: "The construction of new generation here would simply lead to restrictions on the operation of two major nuclear power plants (KhNPP and RNPP - ER)."
As previously reported, "Ukrenergo" is conducting its first competition for the construction of new generating capacities. Applications for participation are accepted until February 28, 2025. The procedure for conducting the competition was approved by the Cabinet of Ministers' resolution dated July 10, 2019, No. 677.
In the first phase of the competition, 700 MW is being procured, divided into two zones: 500 MW in priority regions (Kyiv, Chernihiv, Cherkasy, Poltava, Sumy, Kirovohrad, Mykolaiv, Odesa, Kharkiv, Dnipropetrovsk, Zaporizhzhia, Donetsk, Luhansk, and Kherson regions); 200 MW in non-priority regions (Ternopil, Chernivtsi, Vinnytsia, Zhytomyr, Ivano-Frankivsk, Lviv, and Zakarpattia regions). The deadline for commissioning the capacities is by December 31, 2027.
Head of "Ukrenergo" Oleksiy Brekht noted in a brief interview with "Energy Reform" in early February that he sees significant interest from investors in this competition. He explained that the competition will essentially be conducted based on the cost of constructing a unit of generating capacity, which will be compensated by "Ukrenergo" through a transmission tariff over 10 years after it is put into operation. Brekht added that the state is interested in new capacities, and this is a new way to stimulate their construction, especially now—in wartime conditions when investors are hesitant to proceed.