Installation of a gas-fired power plant up to 10 MW in Ivano-Frankivsk region: FII Project


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

General information

Description of the project

Wärtsilä can be considered as the main equipment supplier - the gas-fired power plant - for this project. The company's track record includes 79 GW of power plant capacity in 180 countries around the world, and Wärtsilä is the oldest original equipment supplier (OEM) for spark-ignition and reciprocating engine power plants since 1992. Its cogeneration plants are characterized by high efficiency, reliability and fuel flexibility, which is a decisive factor for energy projects. Wartsila's technologies ensure optimal fuel use, reducing operating costs and CO₂ emissions, which meets modern environmental standards. In addition, their engines have fast start-up times, which increases the stability and flexibility of energy systems. Wartsila has extensive experience in implementing similar projects around the world, including industrial cogeneration plants and district heating solutions. Their technical support and service network help minimize operational risks and ensure stable operation of the equipment throughout its entire life cycle. All these factors made Wartsila the optimal choice for our projects.

The purpose of the project

Main Goal:

Capacity building

Secondary Goal:

Contribution to climate or environmental goals, Increasing compliance with modern standards, Increasing compliance with modern standards, Creation of new facilities and services, Rebuilding the damaged/destroyed, Improving the equality of wealth distribution, Improving the condition of infrastructure, Introducing innovations and energy-efficient solutions, Creation of new jobs through project implementation, Поява нових виробничих потужностей, Reducing territorial or social gaps, Meeting demand

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

During the implementation of the capacity expansion project for the Support of Critically Necessary Distributed Generation in Ivano-Frankivsk region, it is expected to install an additional Wärtsilä gas piston unit with a capacity of up to 10 MW at the own production site of JSC Ukrnafta. The key objectives of the project are: • increase the power generation capacity of the Unified Power System-U; • increase the stability of the Unified Power System-U; • increase the flexibility and controllability of local generation; • reduce the load on the electricity grid during peak periods.

Problems and solutions resulting from project implementation

The main beneficiaries of the project implementation: 1. Local communities – Residents of the region will have access to a stable and secure energy supply, which will reduce the risk of power outages, especially in the winter months. As of January 1, 2021, the population of Ivano-Frankivsk region was ≈1,361.1 thousand people, many of whom included children and the elderly, who may be vulnerable to energy shortages due to dependence on centralized heating and limited access to autonomous energy sources. 2. Critical infrastructure – Reliable energy supply will support hospitals, schools, emergency services and utilities, ensuring their uninterrupted operation. The Ivano-Frankivsk region has a network of accredited healthcare facilities, which includes at least more than 50 institutions that provide medical care to the population of all ages. These facilities require a stable supply of electricity and heat to ensure uninterrupted operation of departments, provision of emergency medical care, diagnostics, treatment of patients and support of vulnerable groups of the population, especially in conditions of energy risks. 3. Enterprises and industries – Energy security is essential for local enterprises, helping them to maintain operations, avoid disruptions and contribute to economic growth. Reliable energy supply will increase productivity and support regional economic stability. Vulnerable groups and social impact The project will provide direct benefits to groups most affected by energy insecurity, including: ● Older people – Ensuring access to heating and electricity, especially for those living alone or in care facilities. ● Low-income households – Reducing the risk of energy poverty and improving overall living conditions. ● Persons with disabilities – Ensuring uninterrupted access to essential services, including health facilities, rehabilitation centers and assistive technologies. ● Internally displaced persons (IDPs) – Many displaced families have been displaced to these regions due to war and require stable housing conditions with reliable access to energy. To ensure equitable energy distribution and targeted support, the project will implement a data collection system that: ● Tracks uptime data, measuring the reliability of electricity and heat supply to ensure uninterrupted service to critical facilities and communities. ● Uses analytical data to shape future energy planning and social policies, aligning it with international best practices on energy equity and inclusion.

Socio-economic context

Indicator

Value

Number of jobs, including for IDPs

10 workplaces

Population in the geographical area of influence of the project

1361 thous. people

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
Annual electricity production
500000 MWh
52000 MWh
Annual income from other activities
50 mln UAH
55 mln UAH
Annual revenue from the sale of electricity
500 mln UAH
510 mln UAH

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Для визначення попиту на електроенергію та теплову енергію застосовано методику прогнозування на основі: статистичного аналізу динаміки споживання за попередні роки (дані ДП «Оператор ринку», НЕК «Укренерго», Держстат України); кореляції з температурними режимами та середньорічними показниками втрат;
[Response was provided in the Preliminary Investment Feasibility Study]

Has data from external sources been used in the demand assessment?

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

Does the demand forecast take into account the latest demographic and economic forecasts?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
2546000 MWh
Annual demand for services/infrastructure
2
2597000 MWh
Annual demand for services/infrastructure
3
2649000 MWh
Annual demand for services/infrastructure
4
2702000 MWh
Annual demand for services/infrastructure
5
2756000 MWh
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?

Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]

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

None of the options are applicable

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

Pollution prevention and control
[Response was provided in the Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Investment Feasibility Study]
Transition to a circular economy
[Response was provided in the Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Investment Feasibility Study]

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

None of the options are applicable

Have the greenhouse gas emissions or emission reductions (Scope 1-2) associated with the project been calculated for a typical year and the entire project period?

Yes
[Response was provided in the Investment Feasibility Study]

Does the project require an environmental impact assessment (EIA) in accordance with the Law of Ukraine "On Environmental Impact Assessment"?

Yes, not yet conducted
[Response was provided in the Investment Feasibility Study]

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?

Other benefits from project implementation
[Response was provided in the Preliminary Investment Feasibility Study]
Envisaged training or advanced training for women in the private sector
[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]

Were consultations held with representatives of target groups to take into account gender equality issues in the project?

No consultations were held with target groups.
[Response was provided in the Investment Feasibility Study]

Have the gender risks and social impacts of the project been assessed?

All possible positive impacts of the project on women, men or other gender groups have been identified
[Response was provided in the Investment Feasibility Study]
All possible negative impacts of the project on women, men or other gender groups have been identified
[Response was provided in the Investment Feasibility Study]

Are there management and institutional mechanisms in place to ensure gender equality?

A policy/code of conduct on non-discrimination and gender equality has been developed
[Response was provided in the Investment Feasibility Study]

Documents

Name
Date
OFM Dol10F.pdf
18.02.2026
21:13:02 UTC

Alternative technical solutions

Technical Solution 1

Installation of a gas-fired power plant with a capacity of up to 10 MW

Technical Solution 2

Construction and commissioning of a solar power plant (SPP) with a capacity of 21 MW

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)761'758'493 UAH593'550'000 UAH
For preparation45'664'284 UAH18'357'000 UAH
For implementation716'094'209 UAH575'193'000 UAH
Project operation and closure cost2 UAH18'357'001 UAH
For operation1 UAH1 UAH
For closing1 UAH18'357'000 UAH
Average annual costs269'291'818 UAH0 UAH
Project duration, incl.24 months18 months
Deadline for developing a FFS9 months6 months
Implementation period15 months12 months
Service life240 months360 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.]

Components of a technical solution
To components
2
To components
0

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?
Yes

[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]

What procurement strategy was chosen for the project implementation, and what justifies its feasibility in the context of the market and project objectives?
Запланована форма інвестицій: Змішана форма залучення інвестицій – пільгове кредитне фінансування, власні кошти. Профінансовано: обладнання (ГПУ), 100% (у якості фінансування з коштів ФУІФ). Фінансування закупівлі ЕРС-робіт із проєктування, встановлення та введення в експлуатацію успішно отримано від ЄБРР.

[Response was provided in the Investment Feasibility Study]

What approaches are planned to be used to ensure transparency, competition, and efficiency in the procurement process?
Запланована форма інвестицій: Змішана форма залучення інвестицій – пільгове кредитне фінансування, власні кошти. Профінансовано: обладнання (ГПУ), 100% (у якості фінансування з коштів ФУІФ). Фінансування закупівлі ЕРС-робіт із проєктування, встановлення та введення в експлуатацію успішно отримано від ЄБРР.

[Response was provided in the Investment Feasibility Study]

What types of procurement procedures are envisaged by the project (open tender, negotiated procedure, competitive dialogue, etc.)?
Open competitive bidding

[Response was provided in the Investment Feasibility Study]

Competitive dialogue

[Response was provided in the Investment Feasibility Study]

Direct negotiation procedures

[Response was provided in the Investment Feasibility Study]

Pre-market engagement
Попереднє вивчення ринку здійснювалося шляхом: • аналізу відкритих тендерів у ProZorro; • консультацій з галузевими експертами; • аналізу реалізованих аналогічних проєктів в Україні та ЄС; • запитів до потенційних виробників і постачальників (Siemens Energy, GE, Mitsubishi Power, Ansaldo). Це дозволило сформувати реалістичні очікування щодо строків постачання, вартості та технічних параметрів обладнання.

[Response was provided in the Investment Feasibility Study]

Potential market participants
Очікується участь: • міжнародних виробників (Siemens Energy, GE, Mitsubishi Power, Ansaldo); • національних будівельних і монтажних компаній (Укрінжініринг, Енергомонтаж, місцеві підрядники); • консалтингових компаній з енергетики та екології. Рівень конкуренції оцінюється як високий, оскільки на ринку присутні декілька сильних гравців, готових до реалізації проєктів такого масштабу.

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
Очікується участь: • міжнародних виробників (Siemens Energy, GE, Mitsubishi Power, Ansaldo); • національних будівельних і монтажних компаній (Укрінжініринг, Енергомонтаж, місцеві підрядники); • консалтингових компаній з енергетики та екології. Рівень конкуренції оцінюється як високий, оскільки на ринку присутні декілька сильних гравців, готових до реалізації проєктів такого масштабу.

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget761'758'495 UAH611'907'001 UAH
Project cost (preparation and implementation)761'758'493 UAH593'550'000 UAH
For preparation45'664'284 UAH18'357'000 UAH
For implementation716'094'209 UAH575'193'000 UAH
Project operation and closure cost2 UAH18'357'001 UAH
For operation1 UAH1 UAH
For closing1 UAH18'357'000 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]
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
No
[Response was provided in the Investment Feasibility Study]

Average project cost per service recipient

Service UnitСередня вартість проєкту на 1 кВт·год 0,74 грн/кВт·год
Service Unit Cost1 UAH

Profitability of the project

Is the project expected to generate income?YesNo
Is the project self-sustaining?Yes
Has the financial condition of the potential beneficiary been assessed in accordance with the order of the Ministry of Finance of Ukraine dated 14.07.2016 No. 616?No
NPV Value331'800'000 UAH

Availability of services

Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
Not applicable – the project does not provide for the provision of paid services or the establishment of tariffs

[Response was provided in the Preliminary Investment Feasibility Study]

Project Financing Mechanisms

Are funding sources and mechanisms identified?

Source and MechanismYesNo

Funding Sources

Approved Funds0 UAH0 UAH
Expected Funds761'758'494 UAH0 UAH

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]

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?
Yes, successfully implemented 1 or more similar projects

[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
Economic justification - social and gender analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Management rationale - public consultation

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - environmental expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Is there an understanding of where to find relevant experts and consultants?
Partially, we are considering options

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project management structure defined: working group, chair, project team?
Yes

[Response was provided in the Investment Feasibility Study]

What categories of experts and consultants have already been involved at the project preparation stage?
Specialists in interaction with international financial organizations (IFOs)

[Response was provided in the Investment Feasibility Study]

Environmental experts

[Response was provided in the Investment Feasibility Study]

Financial consultants/modelers

[Response was provided in the Investment Feasibility Study]

Legal consultants

[Response was provided in the Investment Feasibility Study]

Commercial experts

[Response was provided in the Investment Feasibility Study]

Economic analysts

[Response was provided in the Investment Feasibility Study]

Strategic consultants

[Response was provided in the Investment Feasibility Study]

Technical experts

[Response was provided in the Investment Feasibility Study]

Management experts / project managers

[Response was provided in the Investment Feasibility Study]

Are there plans to involve experts and consultants for further implementation of the project?
Yes

[Response was provided in the Investment Feasibility Study]

Risk assessment

Technical riskDefinedUndefined
Financial riskDefinedUndefined
Economic riskDefinedUndefined
Political riskDefinedUndefined
Social riskDefinedUndefined
Operational riskDefinedUndefined
Market riskDefinedUndefined
Environmental riskDefinedUndefined

Organizational events

ResponseDefinedUndefined
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)?

None of the options are applicable

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

None of the options are applicable
Need for financing

Does the project require additional funding for preparation?

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

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
19/02/2026SP-N-190226-7C16EACFState SPInvestment Feasibility StudyInclude--
11/03/2026SPP-N-110326-399E2FBFState SPPInvestment Feasibility StudyNot approvedAccording to the results of expert assessment-