Denys Shmyhal discusses the development of gas generation and new market mechanisms with the business community
First Deputy Prime Minister, Minister of Energy of Ukraine Denys Shmyhal held his third working meeting with representatives of the gas generation sector, during which the participants reviewed the week’s results and discussed following steps.
As Denys Shmyhal noted, progress had already been achieved in shaping a predictable market environment. The regulator has approved new, more realistic price caps for the “day-ahead,” intraday, and balancing markets. These will take effect on May 1, making gas-fired power generation more profitable.
Special attention was given to the updated rules for holding tenders for the construction of new generation capacity.
“We are interested in attracting strong players and implementing specific projects where the need is greatest. In particular, in accordance with the Government’s decision, we will put 1,322 MW of new capacity up for tender for the eastern, central, and southern regions. As a mechanism for state support, we propose a market premium model. This is a modern European instrument that guarantees a minimum income while maintaining competition,” emphasized Denys Shmyhal.
During the meeting, participants also discussed establishing systematic cooperation between businesses and Naftogaz. This involves market-based terms for gas supply, the possibility of fixing prices for various periods, and risk hedging instruments. This will allow companies to better control costs and reduce their dependence on price fluctuations.
“We have the opportunity to introduce new market mechanisms as well. In particular, the reserve capacity service. An important foundation for this is the law on market coupling signed by the President, which paves the way for deeper integration with European electricity markets. We continue to work on establishing clear, understandable, and equitable rules to stabilize market operations and strengthen the power system,” noted the Minister of Energy.