Ukrainian Government Updates Rules for New Generation Construction and Renewable Energy Auctions for 2026 – Shmyhal

The Ukrainian Cabinet of Ministers, under the initiative of the Ministry of Energy, is taking significant steps to update the competition rules for the construction of new generation capacity and the auction rules for distributing renewable energy support quotas for the year 2026. This announcement was made by Denys Shmyhal, the First Deputy Prime Minister of Energy, highlighting the government's commitment to enhancing the energy sector.

In a post on Telegram on Friday, Shmyhal explained that these two decisions are designed to work in tandem within the framework of their 'energy hundreds' model. He stated, "One helps the system acquire new generation capacity, while the other opens a more predictable market pathway for the development of renewable energy sources (RES)." This reflects the government's strategy to bolster energy independence and sustainability in Ukraine.

Shmyhal further elaborated that a pilot competition had demonstrated a strong interest from investors in constructing new generation facilities. As a result, the government is now focused on making this mechanism more effective and scalable. He noted, "We are introducing more market logic, simpler participation conditions, regional lots, and a clearer connection of new capacities to the actual needs of the system during peak hours. This decision addresses reserves, maneuverability, and the reliability of electricity supply."

The next step for the government will be to announce a competition for the construction of over 1 GW of new generation capacity, marking a significant milestone in Ukraine's energy development efforts.

Additionally, the Cabinet is working on updating the auction rules for distributing renewable energy support quotas for 2026, while also determining forecast indicators for the coming years. For 2026, the planned quota is set at 330 MW, which includes 250 MW for wind energy, 33 MW for solar energy, and 47 MW for other types of renewable energy sources.

Shmyhal explained that this approach is aligned with European logic in supporting renewable energy, emphasizing competitive auctions, market premiums, and clearer rules for investors. He stated, "While Russia attempts to destroy our energy system, we are building a stronger, more market-oriented, and European energy architecture." This statement underscores Ukraine's resilience and determination to enhance its energy infrastructure amidst ongoing challenges.

The updates to the energy rules and the upcoming competitions are expected to attract more investments and foster a robust renewable energy market in Ukraine, paving the way for a sustainable energy future. As the government continues to implement these changes, it aims to ensure a reliable and efficient energy supply for the nation.