Ukraine to back up to 1GW of new renewable energy projects in 2026

At the initiative of the Ministry of Energy, the government has updated the rules for holding auctions that include support for new renewable energy projects with a total capacity of up to 1 GW.

First Deputy Prime Minister and Minister of Energy of Ukraine Denys Shmyhal announced this on Telegram, according to Ukrinform.

“In 2026, the state will support new renewable energy projects with a total capacity of up to 1 GW. At the initiative of the Ministry of Energy, the government has updated the auction rules to provide this level of support,” he said.

According to the Deputy Prime Minister, the support includes assistance for installing 700 MW of wind generation capacity, 150 MW of biogas, biomass, and small hydropower generation, as well as 50 MW of solar generation.

For the first time, a separate quota of 100 MW has also been allocated for solar power plants combined with energy storage systems. This will make it possible to store electricity during periods of surplus generation and use it during peak consumption periods or supply shortages.

Support for renewable energy will be provided through a market premium mechanism, under which the state compensates for the difference between the actual market price of electricity and the price determined through the auction process.

The government expects this to encourage the construction of new generation facilities, help attract additional private investment into the renewable energy sector, and contribute to the development of a new energy architecture for Ukraine in which the autonomy of regions, communities, territories, and individual facilities plays a key role.

As reported by Ukrinform, last week, the Cabinet of Ministers approved a decision to hold a competition for the construction of more than 1.3 GW of new power generation capacity as part of the country’s resilience plans.

Photo: Denys Shmyhal / Telegram