Step by step: decentralized generation is being developed in Ukraine
29 January 13:35
Five of the eight companies that won the last special auction of Ukrenergo for the purchase of automatic frequency restoration reserve services have made financial security and thus guaranteed the fulfillment of their obligations to build and commission new generation facilities. This was reported by NPC Ukrenergo, Komersant ukrainskyi informs.
According to the company, another 30 MW of highly maneuverable generating units should soon appear in the Ukrainian power system. The winners of the auction will have time to build a new power plant, get the equipment certified, and start providing services from January 1, 2026.
In total, in 2024, Ukrenergo held three special auctions for the long-term purchase of ancillary services. This guaranteed the construction of more than 400 MW of new generating capacities, the lion’s share of which should start operating in October this year.
What are the benefits of distributed generation?
Building decentralized generation in the face of constant hostile attacks on the Ukrainian power system is a matter of utmost importance. As Ukrenergo explains, the principle is very simple: replacing large power plants with small generating units of the same total capacity dispersed throughout Ukraine. Such a power system is much less vulnerable to enemy missiles and drones, and therefore much more stable, able to provide Ukrainians with electricity even in extreme conditions.
According to the law, NPC Ukrenergo cannot be the operator of any power plant, small or large. However, the company indirectly influences the development of decentralized generation. Thus, in 2024, it purchased ancillary services of generation facilities with a total capacity of about 600 MW at long-term special auctions. Almost 500 MW of them are services of new generation facilities that are to be commissioned in the Ukrainian power system by October this year (377 MW) and from January 1, 2026 (about 100 MW).
All these facilities have the same task: to help balance the power system by increasing or decreasing generation at the dispatcher’s command. This reduces the load on the power system during peak hours and mitigates the consequences of the forced use of consumption restriction measures in the event of an energy shortage.
What was done in 2024
According to the Ministry of Energy, the total capacity of distributed gas-fired generating units connected as of December 31, 2024, amounted to 967 MW. Of these, 835 MW were commissioned last year.
According to the Ministry of Energy, by the end of the heating season 2024-2025, it is planned to connect an additional 900 MW. Some of these capacities are already at the final stage of implementation.
Thus, 0.9 to 1.8 GW of additional gas capacity will be used during the current heating season.
Not only the Ministry of Energy
Ukrnafta is actively working on implementing projects to generate energy from its own gas. According to Duncan Nightingale, Chairman of the Independent Supervisory Board of Ukrnafta, at the World Economic Forum in Davos, it will be possible to create a total of up to 370 MW of new capacity through projects to generate energy from its own gas.
