NPC Ukrenergo presented its draft 2020 investment programme for public discussions. The company plans to double its capital investment up to almost 6.6 billion UAH. Of these, more than 5 billion UAH is expected to be invested in the reconstruction of the networks, and 1.6 billion UAH is to be invested in new construction.
The investment policy of Ukrenergo stipulates that the construction of large assets should be financed mainly through loans. This means that in 2020 the share of loans from IFIs in investments will amount to 5.1 billion UAH, and another 1.5 billion UAH will come from profit, depreciation and other sources.
“Ukrenergo plans to maximise the use of credit for investments, as this strategy does not require a sharp increase in tariffs to finance construction or renovation. Accordingly, consumers will not suffer from a sharp increase in the company’s tariff, as the repayment of loans is extended for many years,” said Volodymyr Kudrytskyi, First Deputy Chairman of the Management Board of NPC Ukrenergo.
Ukrenergo has a large loan portfolio and cooperates with top international financial institutions such as the World Bank, the European Bank for Reconstruction and Development, to name a few. They are able to provide large long-term loans at a low interest rate.
Next year’s biggest investment projects include:
- construction of 330kV SS Zakhidna with 330 kV approach OHL to increase the reliability of power supply of the Kyiv load centre
- reconstruction of the 330kV SS Brovarska substation, integral part of the so-called “Kyiv ring”, along with installation of AT-3 , which is an
- construction of 750 kV OHL Zaporizka NPP-Kakhovska to remove restrictions on power output from the Zaporizka NPP and increase the security of supply to consumers in the southern part of the IPS of Ukraine
- new construction of 500 kV SS Kreminska with 500 kV Donbaska-Donska and 220 kV Kreminska-Yuvileina approach OHL
- construction of a new 330 kV Slobozhanska substation, which will ensure the reliability of power supply to consumers in northern Kharkiv
The investment programme envisages the technical refurbishment and reconstruction of facilities at the expense of 3.9 billion UAH loan funds.
The draft investment programme is available on Ukrenergo’s website.