The government will allocate nearly 939 million hryvnias to Ukrnafta’s gas-fired power generation
This was announced by the Ministry of Energy of Ukraine. The government adopted the decision following a proposal from the Ministry of Energy as part of the cooperation between Ukraine and Finland.
The Cabinet of Ministers of Ukraine will allocate nearly 939 million hryvnias to the development of distributed gas generation.
The funds will come from the Finnish-Ukrainian Investment Fund in accordance with the framework agreement between Ukraine and Finland.
According to the Ministry of Energy, the funding will be used to support projects by Ukrnafta, which is developing its power generation business, in particular using gas from its own production.
Where will the new capacity be installed?
The plan involves installing gas-powered piston-type power generation facilities in two regions.
In Ivano-Frankivsk region, plans are in place to install up to 40 MW of capacity.
In Lviv Oblast – up to 20 MW.
Overall, these projects are intended to strengthen distributed generation in the regions and improve the resilience of the power system.
Why this is important
Distributed generation has become one of the key areas for the recovery and protection of Ukraine’s energy sector following Russian attacks.
Unlike large power stations, such capacity can be located closer to consumers and brought online more quickly. This reduces risks for regions in the event of strikes on major energy facilities.
The Ministry of Energy notes that the new projects will help strengthen the energy security of the regions and ensure a more reliable electricity supply for people and businesses.
What is known about Ukrnafta’s plans
Ukrnafta has recently been actively developing its own power generation capabilities.
The company’s website previously reported that Ukrnafta is building a modern distributed generation system and implementing several major energy projects with the support of international financial institutions and the governments of partner countries.
The company is also working on large-scale energy projects, including the construction of a new 250 MW combined heat and power plant in the Dnipropetrovsk region. According to materials published by Ukrnafta, this project involves the generation of electricity for the Ukrainian power grid and operation in both base load and ancillary services modes.
In the case of funding from the Finnish-Ukrainian Investment Fund, the focus is specifically on gas-piston power generation in the Ivano-Frankivsk and Lviv regions.
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