The European Bank for Reconstruction and Development (EBRD) has provided Ukrainian national energy company Ukrenergo with a loan of 149 million US dollars to upgrade the country’s transmission network.
The 15-year sovereign-guaranteed loan will be used to acquire up to 26 new transformers, as well as to conduct the automation and upgrade of 12 high-voltage substations in key locations of Ukraine’s transmission network.
“The investment will help Ukrenergo upgrade its key transmission infrastructure required for the synchronisation with the European electricity networks. It will also assist Ukraine in aligning its legal framework and operational practices with the EU’s Third Energy Package,” the EBRD said in a statement, adding that the contribution will also reduce annual CO2 emissions by 20,500 tons.
The financing is expected to strengthen Ukrenergo’s capacity to accommodate the increasing share of renewables in the Ukrainian grid, with a growing share of solar and wind power.
With the new investment, the EBRD aims for the further institutional development and commercialisation of the Ukrainian energy company.
The EBRD is the largest international financial investor in Ukraine. Since 1993, the bank has invested 13.6 billion US dollars in the country.
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