DTEK and GE Vernova plan 900-million-euro gas-fired plant to strengthen Ukraine’s war-hit power grid

Ukraine’s largest private energy firm, DTEK, plans to invest 900 million euros in a new gas-fired power project with U.S. company GE Vernova to provide flexible generation to help balance the grid as Ukraine expands renewable energy.

The two companies signed a memorandum of understanding to develop the 650-megawatt combined-cycle gas turbine — enough to provide power to 500,000–1 million consumers — at DTEK’s Burshtyn thermal power plant in Ivano Frankivsk Oblast as part of DTEK's strategic "coal-to-gas conversion program" to move to lower-carbon power.

"This is the first step of a real and very just transition from coal to gas generation — cleaner generation," Ukraine’s Energy Minister Denys Shmyhal said at the signing.

Ukraine is seeking to diversify its largely centralized power generation after Russian bombing campaigns targeting energy infrastructure repeatedly cut off electricity supplies to households during the fall and winter. At the same time, the country is pursuing a greener energy mix.

While Ukrainian households rely on natural gas for heating, gas played a limited role in electricity generation before Russia's full-scale invasion, accounting for less than 5% of power output. Coal-fired thermal power plants, by contrast, generated around a quarter of Ukraine's electricity before the war. Russia has relentlessly targeted those plants, taking many of them offline.

The combined-cycle gas turbine will be the first project of its kind in Ukraine, DTEK CEO Maxim Timchenko said. Unlike traditional power plants, the turbine can ramp up within minutes, helping to balance the power system as renewable energy — like wind and solar — plays a larger role in the country's energy mix.

The next step will be to sign contractual agreements in 2027, with the goal of bringing the plant online by 2031, according to Timchenko.

"We are still designing a shelter to protect such a large facility. A lot of details are still under discussion. We need clarity on many details related to the project," Timchenko told the Kyiv Independent after the signing.

Timchenko said during the signing that the company would design the project to withstand attacks in a way that would "protect all equipment inside."

The project is one of 18 flagship investment projects selected by the Ukrainian government under the "Economy of the Future," a plan presented at this year's Ukraine Recovery Conference to help rebuild Ukraine’s war-hit economy. Another DTEK project, the 650-MW Poltava Wind Power Plant in central Ukraine, was also selected under the plan.

GE Vernova, headquartered in Massachusetts, has previously worked with DTEK during Russia’s full-scale invasion, including helping develop a digital substation last year.

While working together during wartime has its challenges, the success of previous projects has given GE Vernova confidence to continue the partnership, the company’s CEO, Roger Martella, told the Kyiv Independent.

"We see this as a sign of strength, a sign of optimism that we're willing to take on the hard things together," he said.

"It's time for us to build an optimistic modern future and not wait any longer.  That's what this project signifies to us."