Ukrenergo announces call for bids: development of 700MW load-following power plants

27.01.2025

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DEVELOPMENT OF LOAD-FOLLOWING POWER PLANTS

In August 2024, the CMU ordered to conduct the tender for the development of load-following power plants of aggregate capacity equal to 700 MW, which is divided into two auction lots of 500 MW (in 1st priority regions) and 200 MW (to be developed in 2nd priority regions).

Load Following Power Plants - Priority Ukraine Regions
500 MW 1st priority regions 200 MW 2nd priority regions
- Kyiv
- Chernihiv
- Cherkasy
- Sumy
- Poltava
- Zaporizhzhia
- Luhansk
- Kropyvnytskyi
- Mykolaiv
- Odesa
- Kharkiv
- Dnipro
- Donetsk
- Kherson
- Zakarpattia
- Ivano-Frankivsk
- Lviv
- Ternopil
- Vinnytsia
- Zhytomyr
- Chernivtsi

 

Submitted bids must include:
1) price in EUR per 1 MW of the capacity
2) desired payment period
Bids submission deadline
FEBRUARY 28, 2025
Maximum bid per 1 MW
EUR 854,977.5
Available payment period
10 years or more
The winning bidder and Ukrenergo will enter the Contract agreement on the provision of services of ensuring the development of generating capacity:
The bidder is obliged to develop and commission the plant by December 31, 2027
Ukrenergo is obliged to secure payments to the bidder starting from the commercial operation date of the plant
 
Developer’s obligations to develop and commission the plant will be secured by the bank guarantee amounting to EUR 30,000 per 1 MW which will be released within 10 business days following the commissioning of the plant.


TECHNICAL REQUIREMENTS TO THE LOAD-FOLLOWING POWER PLANT

Regulatory Compliance

  • Must meet technical requirements established by Ukrainian grid cod pollutant emission limits per Directive 2010/75/EU.

Protection Standards

  • The plant must be protected with engineering and technical protective facilities of he 1st degree Resolution No. 471 (26.04.2024).

Documentation & Spare Parts

  • Includes maintenance guides, spare parts lists, fault detection methods, and technical drawings.

Capacity Range

  • 5 MW to 80 MW.

Guaranteed operational life

  • ≥ 20 years (or 100,000 operating hours).

Operational Requirements

  • Start/stop cycles: 4–8 times/day,
    max downtime between cycles: 15 min,
    annual total: 1800–2000 cycles
  • Control range:
    ≥ 80% of installed capacity
  • Trigger time (full activation):
    ≤ 15 min
  • Continuous operation at max capacity:
    ≥ 8 hours/day
  • Black start capability (start without external grid voltage)

Durability & Maintenance

  • Overhaul intervals: ≥ 2000 start-ups or 6000 operating hours
  • Modular repairs, unified components, and spare parts fleet required
  • Critical components (e.g., turbines) must last until the next overhaul
  • Long-term storage readiness (up to 1 month without maintenance)
  • Equipped with mothballing system and dual-fuel operation capability


REVENUE SOURCES

Market operations

  • The load-following power plant may sell electricity under direct contracts, on day-ahead and intraday market and must participate in the balancing and/or ancillary market: the plant must submit bids in the balancing market and/or the ancillary services market for the total available capacity, for each hour during the calendar month, the plant is allowed to be out of operation during maximum of 10% of the duration of all settlement periods (i.e., 876 hours) during each year.
  • All profit generated by the plant following the market operations belong to the project company.

Payments from Ukrenergo

  • The plant developer whose bid was selected as winning bid will provide services of ensuring the development of generating capacity to Ukrenergo. The price of the service is calculated based on the bid submitted by the developer during the tender. The price to be paid in UAH based on the EUR-UAH exchange rate as of the date preceding the payment day to the developer by Ukrenergo in equal instalments during the entire payment period indicated in the developer’s bid. Payments from Ukrenergo are conditional to performance of the obligations to submit bids in the balancing and/or ancillary services markets.
  • For example, the winning bid is EUR 800,000 per MW and the aggregate capacity of the plant is 15 MW, the payment period is 120 months. In such case the bidder will be entitled to monthly payment of UAH equivalent as of the date preceding the date of payment equal to EUR 100,000.
  • The project company retains the complete control over the plant during the entire operation period and may continue operation after the expiration of the payment period.

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