Today, the NEURC for the first time has approved the Transmission System Development Plan for 2020-2029 defining key areas and actions for the development of NPC Ukrenergo power grids, the estimated cost of projects implementation, and funding sources.
The 10-Year Development Plan is developed by Ukrenergo per Article 37 of the Law of Ukraine “On Electricity Market” and is subject to the Regulator’s approval.
The Development Plan envisages the following actions for the 10 years:
- renovation of 102 active substations with 10 per cent increase of their total transformer capacity, replacement of obsolete and physically outdated equipment, and installation of automated process control systems;
- construction of 8 new substations (completion of SS 500/220 kV Kreminska in the east of Ukraine, SS 330 kV Zakhidna, Skhidna in Kyiv region, SS 750 kV Prymorska in Odesa region, SS 400 kV Uzhhorod in Zakarpattia, SS 330 kV Slobozhanska in Kharkiv region, Talne in Cherkasy region and Vuzlova in the vicinity of the city of Dnipro);
- renovation of over 1.5 thousand km of 220-330 kV power transmission lines and construction of about 3 thousand km of new 220-750 kV OHLs;
- creation of a powerful telecommunications infrastructure (fiber-optic communication line) for the transfer of process-related information from power system facilities to dispatch centers, in order to ensure the necessary level of power system management and data exchange, and implement a range of cyber security measures.
“The priority is to ensure the reliable power supply to consumers in the east of Ukraine, cure “vulnerabilities” of the transmission system, including the power output of existing and perspective generation capacities, and enhance safety and reliability of the power system. With the power grids renovation, the transmission system will be technologically ready and will satisfy reliability requirements during the trial isolated operation and further synchronization with ENTSO-E power systems. Also, we are considering the construction of Energy Storage Systems of 200 MW capacity, which will provide the required volume of primary frequency control with the increased share of RES in the generation structure, and will ensure the successful completion of the isolated mode of operation of the power system”, said Director for Grid Operation and Development Oleksii Brekht.
By Ukrenergo’s estimation, the implementation of such large-scale plans will require 69 billion UAH. In accordance with the Company’s investment policy which allows attracting IFI long-term loans with low interest rates (to 3 per cent) and significant reduction of the burden on the tariff, the major part of such investments (57 billion UAH) are the loans from international financial institutions. 9 billion UAH are Ukrenergo’s tariff funds and another 3 billion UAH are the proceeds from Company’s other activities.
The Development Plan is based on the Generation Adequacy Report prepared by NPC Ukrenergo per the Transmission System Code and takes into account the development plans of the operators of distribution systems and transmission systems adjacent to Ukraine.