New construction of a cogeneration complex based on gas piston units with a total capacity of up to 80 MW in Mykolaiv

Sector
Energy Sector
Stream
Construction of new generating capacities
Maturity level
71
Project Status
Preliminary Investment Feasibility Study
Entry into Portfolio
State level of SPP
Investment Feasibility Study
Implementation
Completion

General information

Description of the project

The project envisages the construction of new generating facilities located on the territory of the Mykolaiv CHPP. Currently, a feasibility study of modernization options for the Mykolaiv CHPP is being carried out with donor assistance (Swedfund). One of the priority options is the installation of gas-piston units with a total capacity of up to 80 MW of electricity, operating in cogeneration mode. This will allow operation in the mode of multiple equipment starts without reducing the reliability of the equipment, choosing the most advantageous price position in the electricity market in terms of the day. The cogeneration component will compensate for part of the thermal capacity of the station with more favorable specific costs for heat generation, reducing the cost of heat production by reducing heat generation on morally and physically obsolete equipment. In addition, electricity generation can be carried out year-round.

The purpose of the project

Main Goal:

Capacity building

Secondary Goal:

Improving the condition of infrastructure, Introducing innovations and energy-efficient solutions, Creation of new jobs through project implementation, Improving the quality of services

Description of the purpose of the project and ways to achieve it

Increase in electricity production. Entry into the balancing market. Entry into the ancillary services market (fast reserves of ARF, RRF, reserve for replacement of RZ, black start) Possibility of generating electricity during the inter-heating period. Replacement of part of the heat of the current capacity of the station during the heating season by utilizing heat from cogeneration units.

Problems and solutions resulting from project implementation

The existing CHP equipment requires significant operating costs when adapting to changes in tariffs, load fluctuations and changes in the temperature schedule during the production of electricity and heat, which leads to a decrease in production efficiency. Currently, the existing equipment provides electricity production of a maximum of 18 MWh and is limited by the requirements of the heating mode. The operation of the current equipment does not meet the requirements for the level of electricity production and the ability to maneuver power, which are necessary in the conditions of the new electricity market of Ukraine. The implementation of the project will allow the CHP to operate in the mode of multiple equipment starts without reducing the reliability of the equipment, choosing the most efficient operating mode. The cogeneration component will compensate for part of the thermal capacity of the station with more favorable specific costs for heat generation, reducing the costs of the cost of heat production by reducing heat generation on morally and physically obsolete equipment

Socio-economic context

Indicator

Value

Number of people who will use the service

160000 human

Population in the geographical area of influence of the project

500000 human

Strategic Case

Strategic feasibility of the project

Sector

Energy Sector

Subsector

Electric power industry

Stream

Construction of new generating capacities

Strategic document

Energy Strategy of Ukraine until 2050

Task

Creation of new generating capacities to ensure the reliability of energy supply, increase energy security and sustainable development of the energy system of Ukraine

Project objectives

Indicator
Base value
Target value
Increasing the volume of electricity production and ensuring the necessary volume of thermal energy. Entry into the balancing market. Entry into the market of ancillary services (fast reserves of ARF, RRF, reserve of replacement of RZ, black start)
0 MWh
80 MWh

Project Sustainable Development Goals

Economic justification

Analysis of the project's impact on ecology and climate change

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

None of the options are applicable

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Project sustainability and inclusivity

Identify potential gender risks of the project and indicate possible ways to overcome them:

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project provide for improving women's access to services?

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
The project will create jobs available to women (temporarily or permanently)
[Response was provided in the Preliminary Investment Feasibility Study]

Are civil society organizations representing women and vulnerable groups included in the consultation process?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Alternative technical solutions

Technical Solution 1

Construction of a cogeneration complex based on gas piston plants with a total capacity of up to 80 MW

Technical Solution 2

Construction of a combined cycle plant + waste heat boiler in a configuration of 31 MW thermal / 50 MW electric

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)2'936'400'000 UAH3'700'000'000 UAH
For preparation73'200'000 UAH1'000'000'000 UAH
For implementation2'863'200'000 UAH2'700'000'000 UAH
Project operation and closure cost56'770'000'000 UAH0 UAH
For operation55'770'000'000 UAH0 UAH
For closing1'000'000'000 UAH0 UAH
Average annual costs1'859'000'000 UAH0 UAH
Project duration, incl.36 months48 months
Deadline for developing a FFS12 months12 months
Implementation period24 months36 months
Service life360 months300 months
Target indicatorsDefined Defined
Technical Solution Status
Active

[The technical approach was selected for further detailed analysis or implementation.]

Rejected

[The technical approach was not selected for further detailed analysis or implementation.]

Commercial Justification

Supplier and contractor market assessment

Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project of interest to small and medium-sized enterprises?
No

[Response was provided in the Preliminary Investment Feasibility Study]

Will the project involve national or international suppliers and contractors?
Yes, both national and international

[Response was provided in the Preliminary Investment Feasibility Study]

Has an analysis of available procurement options been conducted for the technical solution?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget59'706'400'000 UAH3'700'000'000 UAH
Project cost (preparation and implementation)2'936'400'000 UAH3'700'000'000 UAH
For preparation73'200'000 UAH1'000'000'000 UAH
For implementation2'863'200'000 UAH2'700'000'000 UAH
Project operation and closure cost56'770'000'000 UAH0 UAH
For operation55'770'000'000 UAH0 UAH
For closing1'000'000'000 UAH0 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
No
[Response was provided in the Preliminary Investment Feasibility Study]

Average project cost per service recipient

Service UnitПостачання теплової та електричної енергії
Service Unit Cost18'350 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?No

Availability of services

Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
No – analysis not performed

[Response was provided in the Preliminary Investment Feasibility Study]

Project Financing Mechanisms

Are funding sources and mechanisms identified?

Source and MechanismYesNo

Public-private partnership

Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
The project does not fall under the PPP format by its nature/character

[Response was provided in the Preliminary Investment Feasibility Study]

Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
No

[Response was provided in the Preliminary Investment Feasibility Study]

Management Rationale

Team competencies

Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
Strategic justification - analysis of the strategic feasibility of the project

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - economic analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - communication with stakeholders

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - risk management

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - social and gender analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - public consultations

[Response was provided in the Preliminary Investment Feasibility Study]

Economic feasibility study - technical expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of available procurement options

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - legal support

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - SDG compliance analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - working with international financial organizations (IFOs)

[Response was provided in the Preliminary Investment Feasibility Study]

Financial analysis - financial analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - demand analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - environmental expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of the market environment

[Response was provided in the Preliminary Investment Feasibility Study]

Does the team have experience implementing similar projects?
Partially, we have limited experience

[Response was provided in the Preliminary Investment Feasibility Study]

Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
None of the options are applicable
Is there an understanding of where to find relevant experts and consultants?
No, I need help.

[Response was provided in the Preliminary Investment Feasibility Study]

Risk assessment

Financial riskDefinedUndefined
Economic riskDefinedUndefined
Political riskDefinedUndefined
Operational riskDefinedUndefined
Market riskDefinedUndefined
Environmental riskDefinedUndefined
Other riskDefinedUndefined
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs

Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project require preparation assistance from Project Preparation Programs (PPF)?

Development of a full feasibility study;
[Response was provided in the Preliminary Investment Feasibility Study]
Finalization of existing documentation for the preparation of a preliminary feasibility study
[Response was provided in the Preliminary Investment Feasibility Study]
Development of design and estimate documentation (DED);
[Response was provided in the Preliminary Investment Feasibility Study]
Updating existing documentation regarding the preparation of design and estimate documentation (DED)
[Response was provided in the Preliminary Investment Feasibility Study]
Updating existing documentation regarding the preparation of the feasibility study
[Response was provided in the Preliminary Investment Feasibility Study]
Need for financing

Does the project require additional funding for preparation?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
19/08/2025SP-N-190825-D56C058EState SPPreliminary Investment Feasibility StudyInclude--
01/10/2025SPP-N-011025-44E11845State SPPPreliminary Investment Feasibility StudyInclude-71