Solving Debt Problems and Lifting Price Limits - The Key to Investing in Flexible Generation - Analytical Report.

Attracting investment and constructing new energy capacities in Ukraine requires active political support from investors. This is noted in the report by Instrat, prepared by Oleksiy Mikhailenko, head of the analytical department of the Clean Energy Lab.

Investors face debts related to subsidies and have low trust in government support. The Ukrainian electricity market needs stronger and more reliable political support than ever to achieve its ambitious goals, said Mikhailenko.

According to him, Ukraine needs 4.3 GW of new renewable energy sources (RES) by 2026, 1.1 GW of new gas plants with quick start-up capability, as well as ensuring an additional 0.6 GW of cross-border flows. The expert reminds that such large-scale construction rates were achieved in 2019-2020 thanks to renewable energy support programs.

He emphasizes that decisive government actions are crucial for attracting the necessary investments and accelerating the introduction of new capacities. Restoring trust in support policies is vital, starting with settling the debts owed to renewable energy investors and ensuring payment stability.

Ukraine faces the challenge of needing 5.4 GW of new capacities over the next two years and 9.2 GW by 2027-2030.

The President of Ukraine signed bill No. 9381, under which Ukrenergo companies will reduce their debt by 13 billion UAH. The Green Energy Association hopes that the state will pay off the debts for previously generated electricity to accelerate the construction of new power plants.