06.05.2026
The Energy Club forum “Distributed Cogeneration — 2026: Barriers to Energy Resilience and Urban Survival,” held on April 28 in Kyiv, became a platform for a candid conversation about the systemic problems hindering the development of generation in Ukraine. Participants discussed key issues: how to synchronize the market price of gas with electricity price caps to ensure the profitability of cogeneration; the consequences of seasonal unit shutdowns; whether investors are ready to work under regulatory uncertainty; why the country, despite having the technical capacity to produce electricity, is forced to limit consumption; and how price caps affect imports from the EU and integration into the European energy market.
The position was voiced by Dmytro Sukhin, Technical Director of the Department for the Development of Alternative Electric Energy Sources at Epicentr K LLC, who directly works on the implementation of distributed generation projects.
He noted that the system operator has performed a significant amount of work under extremely difficult conditions; however, key problems today arise at the level of distribution system operators (DSOs). Specifically, this refers to the practice of disconnecting cogeneration units along with general grids, even when these units are producing electricity.
“For the DSO, it doesn’t matter whether we are generating or consuming. They have a command from Ukrenergo, and they disconnect all lines indiscriminately, regardless of whether generation or consumption is occurring,” noted Dmytro Sukhin.
According to him, such actions not only reduce the volume of available generation but also create technical and financial losses for businesses. Cogeneration units are sensitive to emergency shutdowns, and restoring them requires time and resources.
“Each of us who operates these machines knows what it means to revive a machine after an industrial shutdown. Personally, I lose several hours on this and have to repair equipment,” he emphasized.
Separately, the Technical Director of the Department for the Development of Alternative Electric Energy Sources at Epicentr K LLC drew attention to the lack of systemic dialogue with distribution and gas network operators. According to him, despite the regular participation of NPC Ukrenergo representatives in professional discussions, representatives of DSOs and gas distribution network operators are practically not involved in discussions, although their decisions often determine the feasibility of project implementation.
He emphasized that without a change in approaches to connecting generation, in particular, the transition to simpler and faster procedures based on the “plug and play” principle, the situation will not change.
Particularly acute, in the speaker’s opinion, is the problem of connecting to gas networks, which effectively blocks the launch of already completed facilities. Even with full technical readiness of the electrical part, project implementation is delayed due to bureaucratic procedures and the complexity of approvals.
“We would have switched on all our generation this winter if it weren’t for the Gas Distribution Network Operators (GDNOs). We were electrically ready. Our gas piston engines were ready, our sites were ready, but the gas networks were not ready,” he stated.
Among the examples is the situation with a 9 MW facility, for which they had to wait two weeks for a metrologist, which, according to Sukhin, is indicative of the entire system.
Against the backdrop of these problems, he outlined a broader picture — total uncertainty in the conditions under which energy businesses operate today. Unstable regulatory policy, a lack of predictability, and numerous barriers make it impossible to plan even in the medium term.
“We don’t know what will happen tomorrow, how the legislation will change. We know nothing about our future,” stated the Technical Director of the Department for the Development of Alternative Electric Energy Sources at Epicentr K LLC.
In this context, the issue of cogeneration development goes beyond the market or investment and becomes a matter of national resilience.
“Currently, energy is a matter of the survival of our country, the survival of our nation,” emphasized Dmytro Sukhin, adding that all strategic projects must be considered taking into account the realities of wartime.
He stressed that right now, the state, regulators, and operators must act as harmoniously as possible to ensure the basic functionality of the system and the ability to pass the heating season.
Dmytro Sukhin’s speech became a concentrated reflection of the barriers that currently hold back the development of distributed generation in Ukraine. And at the same time, it is a signal that without rapid and systemic changes, the country risks failing to utilize its existing potential at a moment when it is critically necessary.
