EU grants €100 million to Ukrenergo for energy infrastructure repairs

Business

19 July 2024, 04:45 PM

A grant agreement for 100 million euros ($108.9 million) was signed between Ukrenergo and the German state-owned KfW Development Bank in Ukraine, Ukrenergo's press service reported on Telegram on July 19.

The document was signed by Volodymyr Kudrytskyi, head of Ukrenergo's management board, and Lorenz Gessner, head of the Representative Office of the German state-owned KfW Development Bank in Ukraine.

The signing took place in Kyiv in the presence of Deputy Energy Minister Roman Andarak and members of the EU Delegation to Ukraine.

The European Commission authorized KfW to allocate funds from the special budget program of the EU Ukraine Investment Facility to Ukrenergo to finance and implement a number of priority energy projects.

These projects include the modernization of high-voltage substations in western Ukraine, the development of interstate interconnectors connecting Ukraine with the continental European energy system, the repair and restoration of equipment at high-voltage substations destroyed or damaged by Russian attacks, and the purchase and supply of new equipment.

Part of the funds will also be used to strengthen the physical protection of Ukrenergo's substations.

Ukrenergo noted that this grant is the second phase of the target program "Reconstruction and Restoration of Ukraine’s Electricity Transmission Infrastructure." The company signed an agreement with KfW for the first phase of the program worth 15 million euros ($16.3 million) at the Berlin conference on Ukraine-2024 reconstruction in June.

Since the beginning of the full-scale war, Ukrenergo has raised 324 million euros ($352.7 million) with the support of KfW, while the total amount of international aid raised amounted to 1.5 billion euros ($1.63 billion), Ukrenergo stated.

Massive Russian attacks on energy infrastructure have resumed since March 22, 2024. Restrictions on electricity consumption have been applied in Ukraine since May.

The Trypillia TPP in Kyiv Oblast was destroyed in an April 11 Russian attack, resulting in a 100% loss of Centrenergo's generation.

The Dnipro HPP lost both power plants in March. The dam survived, but the equipment was destroyed, and the restoration of the Dnipro HPP will take years.

The TPP-5 in Kharkiv was destroyed. Its restoration is equivalent to building a new plant, which will also take years.

Kharkiv Oblast's Zmiyiv TPP (Centrenergo) was destroyed.

DTEK Group (owned by Rinat Akhmetov) reported an 80% loss in generation.

All units of the Burshtyn and Ladyzhyn TPPs were damaged.

A gas storage facility in western Ukraine also suffered damage.

Two HPPs were decommissioned as of May 9.

Controlled emergency power outages were introduced in all Ukrainian oblasts starting May 14.

All large thermal and hydropower plants in Ukraine were damaged due to Russian attacks, Ukrenergo reported on May 20.

Russia attacked Ukraine's energy system in five oblasts overnight on June 1. DTEK reported serious damage to two of its TPPs. This was the sixth attack on Ukraine's power system since March.

Russia struck Ukraine's energy sector on June 20, damaging energy facilities in four oblasts. A critical infrastructure object was hit in Vinnytsia. In addition, Russia attacked a DTEK thermal power plant, causing serious damage to the equipment.

Kyiv was immediately left without three DTEK substations due to an enemy attack on July 8.

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