05.05.2026
While the state searches for ways to strengthen the energy system, some solutions are already effectively on the surface but remain blocked by regulations. This was stated by Oleksandr Dushenko, Director of CE “Teplovyk” (Starokostiantyniv), during the Energy Club forum “Distributed Cogeneration — 2026: Barriers to Energy Resilience and Urban Survival,” held on April 28 in Kyiv.
Generation exists — conditions do not
According to Oleksandr Dushenko, Ukrainian district heating companies (TKE) already have real resources to strengthen the power system: “USAID provided enterprises with about 50 Caterpillar generators with a capacity of 1.8 MW each. That is nearly 100 MW that can run on both gas and diesel.”
However, using this resource hits a wall of economics and regulation. Switching to diesel means significantly higher costs and the need to create fuel infrastructure, which legally brings enterprises closer to the functions of gas stations without appropriate legislative regulation.
An even bigger problem is access to gas. “We don’t have gas for electricity production. We have no opportunity to buy it, even though the funds are available,” noted the director of CE “Teplovyk.” In his opinion, the solution is obvious: “We simply need to be given the opportunity to buy commercial gas for TKE for electricity production. Then we will add 400 MW of peak generation to the system.”
Status that blocks development
A key barrier to the development of cogeneration remains the lack of Critical Infrastructure Object (CIO) status for many heat-generating enterprises. Starokostiantyniv’s CE “Teplovyk” also received an official refusal from the Ministry of Energy, and the reason, according to Oleksandr Dushenko, was stated directly: “We were told: if we grant this status to you, dozens and thousands of cogeneration unit owners will follow. The Ministry is not ready for this.”
The lack of CIO status means the inability to invest even in basic security elements like concrete shelters. Expenses for this are not considered expedient in the relevant ministry—only for equipment reserves.
Market without rules
Additional risks are created by the lack of coordination in the electricity market. “The aggregator receives a command from Ukrenergo to ramp down, while the DSO orders to ramp up. Whom to listen to?” Oleksandr Dushenko addressed the forum participants with a rhetorical question. Such situations, according to him, are not isolated and lead to conflicts and financial losses. Therefore, regulating these issues at the legislative level is critically necessary.
The worst preparation in the years of war
Separately, the head of CE “Teplovyk” emphasized the general state of the industry before the heating season: “The level of preparation for winter this year is the worst in all the years of war. Our accounts are being blocked, and our operational capabilities are being restricted.” Despite this, some enterprises, according to him, remain passive, living by the principles of “it’s not my business” and “it will somehow work itself out.”
Time to unite
The solution, according to Oleksandr Dushenko, is only possible through market consolidation—perhaps on the Energy Club platform—with the aim of influencing government decisions.
“Those who want to change something must unite, form roadmaps, and defend them at all levels,” he emphasized. “No one will do this for us. It won’t solve itself. Only fundamental, rapid market reforms can save the situation.”
