Shmyhal has unveiled a plan to decentralise Ukraine’s power grid
This was announced by Denis Shmyhal, Ukraine’s First Deputy Prime Minister for Energy.
According to him, the Cabinet of Ministers, on the initiative of the Ministry of Energy, has updated the rules for holding auctions, which provide for the relevant amount of support.
The allocated support will be distributed as follows:
- 700 MW – for wind power generation facilities;
- 150 MW – for biogas, biomass and small-scale hydropower;
- 50 MW – for solar power generation;
- 100 MW (separate quota) – allocated for the first time to solar power stations combined with energy storage facilities.
“This will allow electricity to be stored during periods of surplus and used during peak consumption or shortages,” the minister emphasised.
Financial support for the renewable energy sector will be provided through a market premium mechanism. The state undertakes to compensate investors for the difference between the actual market price of electricity and the price determined by the auction results.
The government expects that this step will encourage the construction of new capacity and attract additional private investment. Furthermore, it will contribute to the formation of a new energy system architecture, where the autonomy of regions and individual communities is key.
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