Cogeneration Breakthrough 2025: The Power of Resilience in Numbers and Facts
The year 2025 confirmed the correctness of Ukraine’s strategic energy course. Anna Zamazeeva, Head of the State Agency on Energy Efficiency and Energy Saving (SAEE), emphasized that the focus on distributed generation has fully paid off and has become a real pillar of the country’s energy security.
While the enemy systematically tried to destroy large energy hubs—and continues to do so—Ukraine has been purposefully building a different model: a network that cannot be de-energized with a single strike. This approach became the foundation of cogeneration development.
Presenting the preliminary results of the year, Anna Zamazeeva noted that, according to SAEE experts, 2025 marked a turning point for Ukrainian cogeneration.
Record Pace of Cogeneration Qualification
This year witnessed a real boom: 71 cogeneration units were qualified by SAEE. This is 40% more than last year (42 units). The total capacity of qualified high-efficiency cogeneration units reached 3.1 GW of electricity and 9.2 Gcal/h of heat. This is a 20% increase in electrical capacity compared to 2024 (2.57 GW) and an 11% increase in heat capacity compared to 2024 (8.3 Gcal/h).
Qualification confirms that cogeneration units meet the requirements of high-efficiency cogeneration and is carried out free of charge. Qualified units benefit from an incentive mechanism—exemption from excise tax (3.2%) on revenue from electricity sales—making energy efficiency profitable.
Investments in Autonomy
Over the past year and a half, we have witnessed genuine faith from businesses and communities in this direction. 125 MW of new capacity has been commissioned, which, according to approximate estimates, represents over €210 million in direct investments in our resilience.
As of today, regions have already submitted plans to install at least 250 cogeneration units with a total capacity of 1.1 GW over the next two years. The highest activity and potential are shown by:
Odesa region — 193 MW
Kyiv — 185 MW
Dnipropetrovsk region — 164 MW
Lviv region — 143.6 MW
Implementing these plans will require an additional €1.9 billion in investments.
Government “Green Corridor” and Incentives
Ukrainian government bodies pay close attention to stimulating cogeneration development. Special thanks for leadership in this area go to Prime Minister Yulia Svyrydenko for constant coordination and to the Cabinet for balanced decisions to remove all barriers.
Achievements so far:
Single Window: A simplified connection procedure for new generation units has been launched, with no unnecessary bureaucracy.
Deregulation: Rules for installing units of any capacity and drilling wells for generation water supply have been simplified.
Tax Incentives: Equipment for cogeneration is exempt from VAT and import duties.
Special Gas Price: For frontline regions, the price is set at UAH 19,000 per 1,000 m³, ensuring the survival of CHPs and cogeneration units in risk zones.
Financial Protection: “5-7-9” loan programs and, starting in 2026, military risk insurance.
“Of the 72 energy efficiency and decarbonization projects supported by the Ukrainian Decarbonization Fund, 10 (13.9%) were related to cogeneration. Over UAH 306 million was directly allocated to high-efficiency cogeneration installation projects, and another UAH 141 million went to cogeneration projects using alternative fuels. Almost 30% of the Fund’s financing was directed to supporting cogeneration. This demonstrates that we are practically implementing urgent government directives, and it is doubly gratifying to hear positive feedback from those who have already implemented cogeneration projects with Fund support,” noted the Head of SAEE.
In conclusion, the Head of SAEE thanked everyone who understands the strategic importance of this direction and contributes daily to cogeneration development—both at the central level and in communities across the country.