The Cabinet of Ministers of Ukraine has decided to expand state support for renewable energy projects for 2026. The total volume of new capacities that can receive state support will be up to 1 GW.
This was reported by the Ministry of Energy of Ukraine. The department noted that the government has updated the rules for holding auctions, through which support for new renewable energy facilities will be determined, and has also increased the volume of quotas for the next year.
According to the new distribution, wind generation projects will receive the largest share of support - 700 MW are provided for them. Another 150 MW are allocated for other types of renewable energy, including biogas, biomass and small hydropower. Separately, 50 MW of the quota falls on solar generation.
In addition, the government has introduced a special quota of 100 MW for solar power plants that will operate in conjunction with energy storage facilities. Such systems allow you to accumulate electricity during periods of excess production and use it during peak loads or deficits in the power system.
The Ministry of Energy emphasized that the use of storage will help balance Ukraine’s power system more effectively and increase its resilience. This is especially relevant in the context of constant challenges for the country’s energy infrastructure.
First Deputy Prime Minister of Ukraine - Minister of Energy Denys Shmyhal explained that support for renewable energy will be carried out through a market premium mechanism. Within the framework of this mechanism, the state will compensate for the difference between the real market price of electricity and the price determined by the auction results.
According to Shmyhal, such an approach should stimulate the construction of new energy capacities and help attract private investment in the renewable energy sector. He also emphasized that this will help shape a new architecture of the Ukrainian energy sector, where the autonomy of regions, communities and individual facilities will play an important role.
The government is convinced that the system of auctions and market premiums will create fair competition between electricity producers, reduce the burden on the state budget and consumers, and provide investors with more predictable working conditions. In addition, this should contribute to a more active attraction of bank financing and international investments.
The Cabinet of Ministers also approved an updated schedule for auctions for the allocation of support quotas for 2026. They are scheduled for September-October next year.
In addition, the government has established indicative forecast indicators of annual support quotas for the period 2027–2030. The Ministry of Energy believes that this will give the market a long-term vision of development and allow investors to plan in advance the launch of new projects in the field of renewable energy in Ukraine.
e-finance.com.ua
