Ukraine requires US$15 billion for large-scale modernisation of energy system

Ukraine should take a number of measures in the coming years to increase the capacity and flexibility of its energy system, which will require about US£15 billion of investment. Source: Volodymyr Kudrytskyi, Chairman of the Board of NPC Ukrenergo, on Facebook Details: Kudrytskyi said Ukrenergo had calculated the transformations of the Ukrainian energy system in five, seven and ten years needed to make energy generation cheaper and greener in the future.

To this end, the company has even developed a so-called investment menu.

In order to best protect Ukrainian generation capabilities, infrastructure should be dispersed and new construction projects carried out |using new technologies and eco-friendly transition principles, without using expensive fuels such as gas and coal. According to Ukrenergo's estimates, Ukraine will need about US£15 billion, of which US£5.4 billion can be invested in wind farms, US£2.5 billion in solar power plants, thermal power plants (both types) will require US£2.3 billion, while electricity storage systems and pumped-storage hydroelectric power stations will need US£1.2 billion and US£3.7 billion accordingly.  Accordingly, in the coming years Ukraine will need to be able to generate 1.4 gigawatts from new highly manoeuvrable thermal power plants, as well as 1.1 gigawatts from plants running on biofuel.

It is also planned to build up the Dnister and Kaniv hydroelectric power plants so that they are able to generate 2 gigawatts more power. Moreover, the Ukrainian energy system needs an additional 3.8 gigawatts to be produced by solar power plants, 4.5 gigawatts by wind farms and 0.8 gigawatts by electrical energy storage systems. Kudrytskyi added that the transformation of the energy system should take place primarily through private investors.

Background: Ukrenergo plans to sign an agreement by the end of 2023 to attract up to EUR200 million of financing from the European Bank for Reconstruction and Development (EBRD).

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