EBRD invests $166m in Ukrainian power transmission upgrade
The European Bank for Reconstruction and Development (EBRD) has announced an investment of €149 million ($166 million) in the power transmission system of Ukraine.
The investment will support National Energy Company Ukrenergo in upgrading its key transmission infrastructure that is needed for the synchronization with the European electricity networks.
It will also help the country in aligning its legal framework and operational practices with the EU 3rd Energy Package, a legislative package for an internal gas and electricity market in the European Union.
The 15-year sovereign-guaranteed loan provided by the EBRD will be used by Ukrenergo to purchase up to 26 new transformers and undertake the automation and upgrade of 12 high-voltage substations in key locations of the Ukrainian transmission network.
The loan is also expected to contribute to the annual reduction of CO2 emissions by 20,500 tonnes.
EBRD’s investment will also boost Ukrenergo’s capacity to accommodate the growing share of wind and solar power in the Ukrainian grid.
The international financial institution stated: “The EBRD financing is also promoting the commercialisation and institutional development of Ukrenergo through the implementation of a comprehensive Corporate Governance Action Plan and robust procurement standards.”
Following the start of its operations in the country in 1993, the EBRD is the largest international financial investor in Ukraine.
The cumulative commitments of the Bank are almost €13.6 billion through 432 projects in the country.