Ukrenergo will purchase electricity from businesses investing in distributed generation.

State company Ukrenergo will buy electricity in advance from businesses building distributed generation facilities, even those under construction, said Chairman of the Management Board Volodymyr Kudrytskyi.

“We will enter into a contract with yet-to-be-built power plants for five years ahead. We will undertake to purchase the balancing service from them at the price determined at auction,” he clarified.

The first auction for auxiliary services for investors ready to build decentralized generation in Ukraine will take place in a few weeks.

“I hope that the number of participants in this auction will be close to the 1 GW that is being talked about a lot,” the head of Ukrenergo said.

According to Kudrytskyi, with a long-term contract, investors procure a loan for the construction of power generation facilities, and, accordingly, calculate their financial investment models five years ahead.

According to Ukrenergo, the energy system needs 5-6 GW of generation from various types; for this amount of new generation to be developed businesses must have access to loan financing.