Activity of international financial donors is the driving force behind institutional changes, fight against corruption and renovation of Ukrainian legislation. The example of Ukrenergo’s cooperation with IBRD proves successful realization of foreign investments in our country. The projects we implement with IBRD’s financing are large infrastructure projects. Our common goal is to facilitate implementation of key reforms in energy sector by creating preconditions for launch and efficient functioning of a full-scale electricity market.
The key purpose of the project is to increase the level of security, reliability and efficiency of electricity transmission, and to improve the compensation of reactive power in the grids, thus creating technical conditions to streamline the integration of the IPS of Ukraine into the European Network of Transmission System Operators for Electricity (ENTSO-E) and allow Ukraine to become an important and valuable member of European electricity markets. The project aims to support the implementation of key reforms in the energy sector by creating the prerequisites for effective functioning of the energy market in Ukraine.
Legal agreements:
- Loan Agreement between Ukraine and the IBRD signed on 10.02.2015, effective since 09.06.2015
- Project Implementation Agreement between NPC Ukrenergo and IBRD signed on 10.02.2015, effective since 09.06.2015
- Sub-loan Agreement between the Ministry of Finance, the Ministry of Energy and Coal Industry, the NEURC, and NPC Ukrenergo on the use of the IBRD funds No. 13010-05/53 dated 25.05.2015 (with changes and amendments dated 27.02.2018, 21.05.2019, 10.12.2019);
- Clean Technology Fund (CTF) Loan Agreement between Ukraine and the IBRD signed on 10.02.2015, effective since 09.06.2015
- CTF-Financed Project Implementation Agreement between NPC Ukrenergo and IBRD signed on 10.02.2015, effective since 09.06.2015.
- Sub-loan Agreement between the Ministry of Finance, the Ministry of Energy and Coal Industry, the NEURC, and NPC Ukrenergo on the use of CTF funds No. 13010-05/54 dated 25.05.2015 (with changes and amendments dated 27.02.2018, 19.07.2019);
IBRD and CTF loan closing date – 30 June 2022; IBRD loan repayment date: 15 July 2032; CTF loan repayment date: 15 July 2034.
Loan total amount – USD 315,918,734.34 (without Component 3 “Enhancement of Institutional Capacity of the Ministry of Energy and Coal Industry”), including:
IBRD loan – USD 267,493,734.34.
Clean Technology Fund loan – USD 48,425,000.
Project Description:
– Component 1 “Rehabilitation of transformer substations” (IBRD funding):
– Pivnichna PS:
• SS 330 kV Kremenchuk (Environmental and social management plan for the rehabilitation of 330 kV SS Kremenchuk);
• SS 330 kV Sumy (Environmental and social management plan for the rehabilitation of 330 kV SS Sumy);
– Tsentralna PS:
• SS 330 kV Novokyivska (Environmental and social management plan for the rehabilitation of 330 kV SS Novokyivska);
• SS 330 kV Nyvky (Environmental and social management plan for the rehabilitation of 330 kV SS Nyvky);
• SS 330 kV Zhytomyrska (Environmental and social management plan for the rehabilitation of 330 kV SS Zhytomyrska);
• SS 330 kV Cherkaska (Environmental and social management plan for the rehabilitation of 330 kV SS Cherkaska);
– Zakhidna PS:
• SS 330 kV Rivne;
• SS 220 kV Kalush;
• SS 330 kV Bohorodchany;
• SS 330 kV Ivano-Frankivsk;
• SS 220 kV Boryslav;
• SS 330 kV Kovel (additional component due to saved funds of IBRD loan, included in May 2019)
– Component 2.1 “Installation and connection of reactive power compensating devices for 220–330 kV substations: SS 330 kV Novovolynsk, SS 220 kV Lutsk pivdenna, SS 330 kV Kovel, SS 330 kV Shepetivka, and SS 330 kV Kamianets-Podilska” (IBRD funding).
– Component 2.2 “Smart grids”: introducing advanced technologies for intelligent management of power systems and networks to optimise their operation, as well as to ensure the safety, reliability and efficiency of electricity transmission in the context of RES integration into the IPS of Ukraine (CTF funding).
– Component 2.3 “Balancing market”: introducing the IT-system and related communications to operate as the system operator of the balancing market (IBRD funding).
– Component 2.4 “Institutional development of Ukrenergo”: introducing in the Company the information management system, audit, and consultancy services (IBRD funding).
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Works completed to date:
Component 2.1 – under the contract on the installation and connection of reactive power compensating devices for five 220 kV–330 kV substations, as a result the situation with the reactive power compensation in the grid is improved and the technical conditions are created to move closer to Ukraine’s IPS integration to the European Network of Transmission System Operators for Electricity (ENTSO-E);
Component 2.3 – under the contract on establishing the systems of the balancing market, ancillary services market and settlements administrator, as a result the software platform is implemented to support the operation of the electricity balancing market, which enabled the fulfilment of the Law of Ukraine “On the Electricity Market” dated 13.04.2017 No. 2019-VIII and the fulfilment of Ukraine’s commitments to the EU regarding the introduction of EU’s Third Energy Package.
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Contracts in progress:
Component 1 – contracts on the rehabilitation of 6 substations in Pivnichna and Tsentralna Power Systems, and 6 substations in Zakhidna Power System (additional component due to saved funds of the IBRD loan; contracts on this component were placed in June–August 2020 based on results of international bidding).
Component 2.2 – the contract “Telemetry system (STS) for substations and the system of remote control and data acquisition / energy management system / automatic generation control system (SCADA/EMS/АGC)” and the contract “Wide Area Monitoring System (WAMS)”;
Component 2.3 – the contract “ІТ infrastructure of the balancing market” and the contract “Organization of data centres”;
Component 2.4 – the contract “Software (asset management system)”.