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  • In 2021, Ukrenergo plans to invest over UAH 7 bln in the grid development

    In 2021, Ukrenergo plans to invest in the grid development UAH 7.128 bln, of which UAH 5.43 bln (76%) will be allocated to retrofitting and reconstruction of grids and purchase of equipment, and UAH 1.698 bln (24%) — to the new construction.

    It is worth noting that over 75% of all investments are the loan funds raised by NPC Ukrenergo from international financial institutions, in particular, from the International Bank for Reconstruction and Development, the European Investment Bank, the European Bank for Reconstruction and Development, and the German state-owned bank KfW, etc. The remaining balance are the tariff funds and the Company’s own financial resources.

    The growing share of loan proceeds constitutes an integral part of Ukrenergo’s investment policy. The loans are long term (20 years on average) and low interest (under 3%), which commercial banks cannot offer. Such policy makes it possible to elevate the burden on the Company’s tariff, and Ukrenergo has been pursuing it for over 5 years already.

    “In 2021, Ukrenergo plans to reach the finish line in implementing the programme of the power equipment replacement at substations. We will also focus on the comprehensive reconstruction and automation of substations, and the implementation of projects ensuring the resilient power supply to border and frontline regions in the east of Ukraine.  These and other projects are aimed at ensuring the power supply reliability in the regions, eliminating the bottlenecks in the power system, and the introduction of state-of-the-art technologies and systems. With their implementation we will be able to move confidently through the period of the power system isolated operation preceding our integration to the ENTSO-E and to advance the technological level of the equipment and control systems to the European standards”, commented Oleh Pavlenko, Investment Director of NPC Ukrenergo during the online open discussion of the Company’s Investment Programme for the Year 2021.

    In particular, plans for 2021 include the further implementation of the comprehensive programme of substations automation with the replacement of obsolete equipment and transition to new modern switchgear systems and installation of automated process control systems. The first stage of the programme encompasses the reconstruction of 48 substations in all regions. The largest level of effort in 2021 will be dedicated to SS 330 kV Rivne, Kalush, Bohorodychany, Kovel, Ivano-Frankivsk, and SS 220 kV Boryslav.

    As part of its programme of the power equipment replacement at substations, Ukrenergo in 2021 should replace 13 transformer units at 9 substations. So far, we have replaced 39 of the 58 power equipment units planned under the programme.

    Funding will be primarily focused on the projects aimed at strengthening the resilience of the border regions in the east of Ukraine that share borders with the temporarily occupied territories of Donbas. In particular, these are the projects of reconstructing the SS 750 kV Dniprovska, Zaporizka, 330 kV Zaliutyne and Kharkivska to the total amount of UAH 1.097 bln. The plans include construction work and supply of equipment to these facilities.

    Also, in 2021 we will start the new projects of constructing the OHL 330 kV Kurakhivska TPP — Bilytska and OHL 330 kV Kupiansk — Kreminska.  These projects are called to ensure the reliable power supply for consumers of the Bilytsky power centre and remove the constraints on the power output of Vuhlehirska and Kurakhivska TPPs in 330 kV grid repair schemes, and to compensate for the disconnection of interconnectors with the RF, respectively.

    In addition, in 2021 Ukrenergo will commence the active phase of a number of projects. The lion’s share of funding is allocated for the start of construction of SS 330 kV Zakhidna with diversions of OHL 330 kV (UAH 576.6 mln) and reconstruction of SS 330 kV Brovarska with installation of a third auto-transformer (UAH 333 mln). These projects are aimed at improving the transmission system in the Kyiv region where consumption demonstrates a steady trend upwards. Among new key construction projects are the OHL 330 KV Zakhidnoukrainska — Bohorodychany with the reconstruction of both substations (UAH 141.9 mln) and the start of construction of a new SS 330 kV Slobozhanska in Kharkiv region.

    The investment programme also allocates UAH 211.8 million for the reconstruction of 330 kV OHL with laying the optical pilot ground wire (OPGW) cable and installation of substation FOCL equipment in ten regions of Ukraine (Kyiv, Vinnytsia, Kirovohrad, Cherkasy, Poltava, Dnipropetrovsk, Zaporizhia, Kherson, Mykolaiv, and Odesa).

    These and other projects are listed in Ukrenergo’s Ten-Year Network Development Plan. It should be noted that Ukrenergo’s annual investments into the development of grids and control systems amount to at least UAH 3 billion.

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