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    On 24 May, the Guarantee Agreement between Ukraine and the European Investment Bank (EIB) and the Financial Agreement between the EIB and SE “NPC “Ukrenergo” in the amount of 136 million euros

    were signed in Brussels. These loans will be used to finance the project “Program for Improving Substations Reliability.”

    The project provides for a comprehensive replacement of outdated power equipment and full automation of 12 substations in the south-eastern region of Ukraine (SS 750 kV “Pivdennodonbaska,” SS 330 kV “Melitopolska,” “Nikopolska,” “Prometei,” “Kvartsyt,” “Pivdenna,” “Pershotravneva,” “Kamianska,” “Dniprovska,” “Pavlohradska,” “Zaporizka,” “Hirnycha”). Automation involves the introduction of automated systems of control over technological processes (ASCTP), which allow controlling substations in a remote mode.
    This project was developed within the framework of the Comprehensive Program for Substations Automation, adopted by the company in January this year, and constitutes another step in implementing the Development Strategy of Ukrenergo. The financing of the Program is provided at the expense of the loans from the EIB, EBRD, KfW and IBRD in the total amount of about 408 million euros. 
    “Comprehensive automation of substations is currently one of the main technical issues for Ukrenergo. Full technological re-equipment of the grid infrastructure and bringing it in line with the current requirements of reliability and safety will allow us to confidently approach the integration of the power system of Ukraine into ENTSO-E,” Vsevolod Kovalchuk, CEO of Ukrenergo, emphasised. “Definitely, this scale of technological upgrade requires significant resources. And I am grateful to our international financial partners for their trust and support for Ukrenergo in this direction,” he said.
    Ukrenergo’s investment policy envisages the attraction of loans from international financial institutions first of all in order to reduce the burden on the company’s tariff.
    “The loan is issued under state guarantees for 15 years at a significantly lower interest rate than the financial market of Ukraine can offer. Moreover, all purchases under the project are performed in accordance with stringent international requirements and criteria, which ensure maximum transparency and efficiency of the use of loan funds,” Vsevolod Kovalchuk noted.
    For reference
    The Comprehensive Program for Substations Automation provides for the automation of all substations of Ukrenergo in two stages: 2019-2021 and 2022-2027.
    The first stage (2019-2021) envisages the automation of 48 substations under 4 investment projects:
    “Program for Improving Substations Reliability” (EIB loan funds):
    Reconstruction of 12 substations of Dniprovska PS  with the implementation of ASCTP.
    “Modernization of Ukrenergo transmission grid” (EBRD loan funds):
    Purchase of 27 units of transformer equipment, its installation and reconstruction of 12 substations (6 substations of Zakhidna PS, 3 substations of Pivnichna PS, 2 substations of Pivdenna PS and 1 substation of Tsentralna PS) with the implementation of ASCTP.
    “Automation of 15 substations” (IBRD loan funds):
    Reconstruction of 15 substations (5 substations of Tsentralna PS, 6 substations of Zakhidna PS and 4 substations of Pivnichna PS) with the necessary volume of reconstruction of primary and secondary equipment.
    “Improvement of electricity transmission energy efficiency (reconstruction of transformer substations) – II” (KfW loan funds):
    Reconstruction of 9 substations of Pivdenno-Zakhidna PS.

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