Ukrnafta submitted two applications to the Ukrenergo competition for new generating capacities

PJSC Ukrnafta submitted two applications for the Ukrenergo tender for new generating capacities, the total capacity of which is 700 MW, as reported in the broadcast of the meeting of the tender committee on the Ukrenergo website, Energy Reform correspondent reports.

During the broadcast, it became clear that one of Ukrnafta’s applications concerns the construction of new generating capacities in the Cherkasy and Poltava regions, and the other – in the Lviv region.

Also, applications for participation in the competition were submitted by Industrial Station LLC (registered in Ivano-Frankivsk, the region of construction of the capacity is not specified), Tisagaz LLC (Uzhgorod), Inzhur Energy (Kyiv), the founder of which Andriy Zhurzhiy recently noted that the fund is considering the possibility of participating in this competition with a facility with a capacity of 50 MW, as well as Lis Energy LLC (Rivne region), Ecoera (Ivano-Frankivsk region), Magnat Energy LLC (Chernihiv region), Agrodar Agricultural Enterprise (Kiev region), Radosvit Agroholding LLC (Chernihiv region), Dalort LLC (Kiev region), Nord Land LLC (Kyiv), Krivoy Rog Cement PJSC (Dnipropetrovsk region), Power ON LLC (Kharkiv region).

As mentioned earlier, 14 applications were received for the first ever tender for the construction of a new generating capacity with a total capacity of 700 MW. This information became known during the broadcast of the meeting of the tender committee on Wednesday, March 5, which at this stage opened the tender proposals and discussed the documents submitted by the companies. As its secretary, legal director of Ukrenergo Maksym Yurkov, specified during the meeting, at this stage the evaluation of proposals is not carried out, as well as the disclosure of price proposals.

Applications for participation were accepted until February 28, 2025. The procedure for holding the competition was approved by the Resolution of the Cabinet of Ministers of Ukraine dated July 10, 2019 (No. 677).

At the first stage of the competition, 700 MW is being purchased, divided into two zones: 500 MW in priority regions (Kiev, Chernihiv, Cherkasy, Poltava, Sumy, Kirovograd, Mykolaiv, Odessa, Kharkiv, Dnipropetrovsk, Zaporizhia, Donetsk, Luhansk, Kherson regions); 200 MW in regions that are not priority (Ternopil, Chernivtsi, Vinnytsia, Zhytomyr, Ivano-Frankivsk, Lviv and Zakarpattia regions). The commissioning date of the capacities is December 31, 2027.

In a blitz interview with Energy Reform in early February, Ukrenergo CEO Oleksiy Brekht noted that there is significant interest from investors in this tender. He explained that the tender will be organized for the cost of building a unit of generating capacity, which Ukrenergo will compensate through a transmission tariff for 10 years after commissioning. Brekht added that the state is interested in new capacities, and this is a new way to stimulate their construction, especially in the current war conditions, when investors are in no hurry to do so.

At the end of February, Ukrenergo Supervisory Board member Yuriy Boyko reported that the company is already preparing to announce a repeat tender for new generating capacities and will offer potential investors even more attractive conditions compared to the pilot project that is currently being implemented.