Yulia Svyrydenko: New decentralized generation facilities will help boost energy resilience in communities

The Government has introduced new incentives and opportunities for developing distributed generation, according to Ukrainian Prime Minister Yulia Svyrydenko.

"The heating season in Ukraine is taking place under extremely difficult conditions, with daily enemy attacks on the energy sector.

New decentralized generation facilities, in particular cogeneration plants, will increase the energy resilience of communities in such conditions. They can produce both heat and electricity simultaneously, ensuring decentralization and additional resilience during power outages," Yulia Svyrydenko emphasized.

The Government has set a special price for gas for cogeneration plants in frontline regions.

The price of natural gas has been reduced to UAH 19,000 per thousand cubic meters for electricity producers at thermal power plants, combined heat and power plants, gas turbine and gas piston plants in frontline regions. The price will be valid for one year.

"Why is this important? Many power plants in frontline regions run on gas and ensure the balance of the power system during peak loads. A stable and predictable gas price allows them to plan their work, sign new contracts, and provide electricity when it is critically needed," said the Head of Government.

The Cabinet of Ministers has simplified the procedure for establishing distributed generation facilities and removed capacity restrictions.

“We are simplifying the rules for installing gas piston, gas turbine, and modular boiler plants of any capacity. Previously, capacity restrictions (from 1 MW) created difficulties for communities, hospitals, schools, and businesses that needed smaller power sources,” said the Prime Minister. “The simplified procedure applies to all types of installations: gas and diesel generators, cogeneration modules, gas turbine and gas piston installations, as well as energy storage systems.”

The Government has resumed the competition for the construction of generating capacity. Changes have been made to allow the completion of the tender for the construction of new generating capacity facilities and the resumption of new tenders.

Permits for drilling wells, in particular for cogeneration facilities, have been simplified. The Government has extended the pilot project on water supply in the Donetsk and Dnipropetrovsk regions to the entire territory of Ukraine.

"Now the Government has authorized all regional military administrations to drill wells during martial law under a simplified permitting procedure—without land allocation, special documentation, or other restrictions. This change is necessary to provide people, businesses, industrial enterprises, and heat generation facilities with a stable water supply.

These steps will allow cogeneration plants to be connected to the general network as quickly as possible," said Yulia Svyrydenko.

The Ministry of Energy, the National Energy and Utilities Regulatory Commission, the Ministry for Communities and Territories Development, regional administrations, and Kyiv City Military Administration have been commissioned to ensure that this process runs smoothly. In addition, hotlines on energy issues will be set up to respond to violations, involving law enforcement agencies if necessary. The National Energy and Utilities Regulatory Commission has also been requested to develop solutions for creating favorable conditions and to inform the Government within a week.