Ukraine’s energy network will receive a major boost following an investment of up to €149 million by the EBRD into the country’s power transmission system.
The investment will help Ukrenergo upgrade its key transmission infrastructure required for the synchronisation with the European electricity networks. It will also assist Ukraine in aligning its legal framework and operational practices with the EU 3rd Energy Package.
Ukrenergo will use the 15-year sovereign-guaranteed loan to acquire up to 26 new transformers and carry out the automation and upgrade of 12 high-voltage substations in key locations of the Ukrainian transmission network. The loan will also contribute to the annual reduction of CO2 emissions by 20,500 tonnes.
The investment will strengthen Ukrenergo’s capacity to accommodate the growing share of renewables in the Ukrainian grid, with an increasing share of wind and solar power. A flexible, smart grid will be key to the sustainable electricity sector of the future.
The EBRD financing is also promoting the commercialisation and institutional development of Ukrenergo through the implementation of a comprehensive Corporate Governance Action Plan and robust procurement standards.
Original source: EBRD
Published on 30 July 2019
