The European Bank for Reconstruction and Development (EBRD) plans to provide NEC Ukrenergo with a state-guaranteed loan of up to EUR90 million for the reconstruction of selected substations in the country.
“It is expected that the loan, if possible, will be co-financed by investment grants from international donors totaling up to EUR60 million for the purchase of reserve stocks of electrical equipment and equipment for inter-system connections,” the bank said in a statement on its website.
The project is currently awaiting approval by the bank’s board.
As explained by the EBRD, the goal of the project, with a total cost of EUR 150 million (EUR 90 million + EUR 60 million), is to increase the resilience of the power transmission system in the face of constant attacks to ensure uninterrupted power supply to the population and businesses throughout the country.
In particular, the current loan will be used to reconstruct three existing substations and complete the construction of one new substation in Ukraine, which was started as part of a project financed by the bank in 2014.
The reconstruction of the three existing substations and the completion of the new substation will be carried out in accordance with international best practice, using equipment that meets EU requirements. Some of the damaged or destroyed equipment will be replaced.
Currently, the new substation with 330 kV overhead power lines is being built at the stage of already laid foundations using EBRD loan funds saved as part of the project to build the 750 kV Zaporizhzhya NPP – Kakhovka power line.
As the EBRD recalled, since February 2022, the bank has provided Ukrenergo with three loans as part of its ongoing support, including emergency capital support and emergency investments aimed at restoring the power transmission network after serious damage caused by the Russian military invasion of Ukraine.
According to the EBRD, Ukrenergo has provided the bank with satisfactory reporting on these loans, as well as generally satisfactory reporting in the past. It has the national capacity to implement the bank’s environmental and social requirements (ESR), as well as national and European legislation. The company is strengthening its ESG management system, including inclusive measures, to help it report on sustainability issues in the future in accordance with the EU Corporate Sustainability Reporting Directive (CSRD).
As reported with reference to Maxim Khlapuk, a member of the Verkhovna Rada’s energy committee, as of June 2025, the total amount of credit funds under agreements between Ukrenergo and the EBRD, as well as the European Investment Bank (EIB), amounted to EUR1.22 billion, of which EUR 215.5 million remained unutilized, and with the International Bank for Reconstruction and Development (IBRD) – $509.74 million, of which $54.87 million remained unutilized.
In addition, under two grant agreements between Ukraine and the IBRD for EUR 37.7 million and $200 million, EUR 18.9 million and $134.5 million remained unutilized, respectively.
EBRD, LOAN, POWER GRID, RECONSTRUCTION, SUBSTATION, UKRENERGO
DTEK is interested in purchasing new power grid assets in Ukraine and EU countries, CEO of the company Maksym Timchenko has said.
“I believe that all DTEK’s business, in one way or another, are related to how successfully DTEK Grids will develop […] In our long-term strategy, we are talking about expanding the portfolio of assets, we are ready to further participate in the acquisition of grid companies both in Ukraine and beyond,” he said when presenting DTEK’s new strategy until 2030.
As reported, the operating holding DTEK Grids is engaged in the distribution of electricity in Kyiv city, Dnipropetrovsk, Donetsk, Kyiv and Odesa regions.
DTEK was established in 2005 to manage the energy assets of the System Capital Management Group (SCM, Donetsk) of Rinat Akhmetov. The functions of strategic management of the enterprises of the group that make up the vertically integrated chain for the extraction and enrichment of coal, production and sale of electricity were delegated the holding.
ASSETS, DTEK, EU, POWER GRID
Ukrenergo has canceled the planned repairs of the 220 kV Luhansk TPP-Lysychansk power grid scheduled for June 15-19, the company’s press service has reported.
According to its data, in the current situation the Luhansk energy center’s power balance is ensured by the operation of only one unit at Luhansk thermal power plant (TPP).
“The work with such a minimum composition of equipment is unstable and it is very difficult to properly provide for overflows with 110 kV lines that connect Luhansk region with the rest of Ukraine,” the company noted.
In this regard, Ukrenergo is considering the possibility of carrying out scheduled repairs at the Luhansk TPP-Lysychansk transmission line to prepare for the autumn-winter season during a period when the balance sheet conditions will allow the station to operate with at least two blocks. The approximate date of repairs is October 2018.
The harmonization of the Ukrainian power grid with the European Network of Transmission System Operators (ENTSO-E) is a strategic direction of cooperation between Ukraine and the European Union (EU) in the electricity sector, Director General of the Directorate-General for Energy of the European Commission Dominique Ristori said at a press conference in Kyiv on Friday. He said that for the merger of the power grids additional studies of static and dynamic stability are to be conducted and some technical measures are to be taken to ensure the full integration. Amendments to the market legislation and integration of the power grids should move as synchronously as possible.
As reported, in June 2017 Ukrenergo Head Vsevolod Kovalchuk signed an agreement on the conditions for the future integration of the energy systems of Ukraine and Moldova with ENTSO-E. In July the agreement came into force after it had been signed by the necessary number of European system operators.
The deadline for Ukraine’s fulfilling the requirements for accession to the united energy system of continental Europe is July 2022.
The document consists of three main parts: a catalog of requirements (unconditional fulfillment of which is necessary for making a decision on the merger of the power grids); a list of necessary additional research; and a road map.
COOPERATION, EUROPEAN NETWORK, INTEGRATION, POWER GRID, STRATEGIC DIRECTION
