Ukrenergo will invest over UAH 7 billion in grids development in 2021

NPC Ukrenergo informs that it plans to invest UAH 7.128 billion in grids development in 2021, of which UAH 5.43 billion (76%) – in technical re-equipment, reconstruction of power grids and the purchase of equipment and UAH 1.698 billion (24%) – in new construction.

It is noted that more than 75% of all investments are loans attracted by NPC Ukrenergo from international financial institutions, in particular, the International Bank for Reconstruction and Development, the European Investment Bank, the European Bank for Reconstruction and Development, the German government bank KfW, etc. The rest part includes tariff funds and the company's own funds.

The increase in the share of loan-based funding is an integral part of Ukrenergo's investment policy. Loans are provided for long terms (an average of 20 years) and at low-interest rates (up to 3%), which commercial banks cannot offer. This policy allows reducing the burden on the company's tariff and has been carried out by Ukrenergo for more than 5 years.

“In 2021, Ukrenergo plans to enter the finish line in the implementation of the substation power equipment replacement program. We will also focus on comprehensive reconstruction and automation of substations, implementation of projects to ensure the reliability of power supply to border and front-line regions in eastern Ukraine. These and other projects are aimed at ensuring the reliability of power supply to individual regions, eliminating bottlenecks in the power system and introducing modern technologies and systems. Their implementation will allow us to confidently go through a period of isolated operation of the power system, which will precede integration into ENTSO-E, as well as raise the technological level of equipment and control systems to European standards," said Oleh Pavlenko, Investment Director of NPC Ukrenergo during an open discussion of the draft investment program of the company for 2021.

To recap, Ukrenergo and Siemens are modernizing the dispatch control system of the Ukrainian power system.

Earlier it was reported that Ukrenergo filed an appeal regarding the abolition of transmission fees for electricity exports.

Tags: Ukrenergo, electricity market, investments, modernization, innovations, technologies

Read also

An Eye for an Eye: Ukrainian Power Engineers Demand Compensation from Russians for Destroyed Property
The Security Service of Ukraine issues suspicion notice to Russian billionaire for exporting raw materials for Rosatom from Ukraine.
ZELENSKY: Russian authorities are planning to blow up the Zaporizhzhya nuclear power plant to destabilize Ukraine