Ukraine’s transmission system will undergo upgrades following an investment of up to €149m by the European Bank of Reconstruction and Development (EBRD).
The investment will strengthen Ukrenergo’s capacity to accommodate the growing share of renewables in the Ukrainian grid, with an increasing share of wind and solar power.
The upgrade will also enable Ukraine to align its legal framework and operational practices with the EU 3rd Energy Package.
Ukrenergo will use the 15-year sovereign-guaranteed loan to acquire up to 26 new transformers and carry out the automation and upgrade of 12 high-voltage substations in key locations of the grid. The loan will also contribute to the annual reduction of carbon dioxide emissions by 20,500 tonnes.
The EBRD financing will also promoting the commercialisation and institutional development of Ukrenergo through the implementation of a comprehensive Corporate Governance Action Plan and robust procurement standards.
The EBRD is the largest international financial investor in Ukraine, having made a cumulative commitment of almost €13.6bn through 432 projects in the country since 1993.