December 1-7

  • On the night of December 6, another massive strike was launched against Ukraine’s energy system, specifically against power generation, distribution, and transmission facilities. In total, the enemy used 653 strike UAVs and 51 missiles of various types.
  • For the first time since the start of the war, Ukraine is introducing monthly auctions for the allocation of transmission capacity at the Ukraine-Hungary, Ukraine-Slovakia, and Ukraine-Romania interconnections. Also, according to the agreement between the TSOs of Ukraine and Moldova, intraday auctions will be held to allocate the transmission capacity of the Ukraine-Moldova and Moldova-Ukraine crossings.
  • The Verkhovna Rada approved the 2026 state budget, which allocates almost UAH 21 billion for energy security and related programs, including infrastructure restoration (UAH 3.7 billion) and measures for the Chornobyl Nuclear Power Plant (UAH 1.6 billion). UAH 15.22 billion will be provided for subsidies to compensate for the difference in heating tariffs, and UAH 10 billion for international investment projects. The main energy revenues of the budget are subsoil use royalties for gas (UAH 34.78 billion), oil (UAH 10.07 billion), and gas condensate (UAH 3.38 billion), as well as excise taxes on fuel (UAH 131.09 billion) and electricity (UAH 11.76 billion).
  • On December 3, the government adopted a resolution to allocate an additional USD 116 million in grant funds for the second phase of a joint project with the World Bank to restore heating infrastructure, expanding its assistance from one city to seven frontline communities, which will receive modern equipment to ensure a stable passage of heating season.
  • The Cabinet of Ministers expanded the opportunities for NPC Ukrenergo to purchase electricity at special auctions to cover technological losses, which should ensure more predictable prices and curb the growth of transmission tariffs. As a result, the NEURC has set a more moderate increase in TSO tariffs for 2026: for transmission — 713.68 UAH/MWh from January and 742.91 UAH/MWh from April (instead of 848.52UAH/MWh, as was provided for in the draft tariff), and the tariff for dispatch control — 110.03 UAH/MWh (instead of UAH 143.26/MWh).
  • The government set a preferential price of 19 UAH/m³ (including VAT) for gas for thermal power plants, combined heat and power plants, and other gas-fired generation facilities in frontline regions, stipulating that the list of recipients of this price will be approved by the Ministry of Energy upon submission by Ukrenergo.
  • Ukraine will receive additional international support for the energy sector: the EBRD is preparing a loan of up to EUR 75 million for Ukrhydroenergo, Germany is providing an additional EUR 100 million through KfW, Sweden is allocating over SEK 1.1 billion (including SEK 700 million for NEFCO and SEK 225 million for the Ukraine Energy Support Fund), and the UK is providing GBP 10 million for the repair of energy infrastructure.
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