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
The Kametstal plant of the Metinvest mining and metallurgical group (Kamensk, Dnipropetrovsk region) has begun the first stage of a large-scale overhaul of one of its important substations, which supplies electricity to technological processes.
According to the company, the overhaul will also include the modernization of key equipment, which will improve the reliability of power supply and occupational safety.
The main tasks of the overhaul include replacing obsolete equipment that is no longer used in external power grids with modern switching equipment. In particular, disconnectors will be replaced with new 150 kV gas-insulated circuit breakers. Electromagnetic relays will also be replaced with microprocessor-based protection and automation relay units, which provide more sensitive protection with automatic rapid response of equipment to emergency situations.
It is specified that the new equipment will enable the protection of 150 kV electrical circuits directly at the Kametstali substation, whereas previously this was carried out at the remote DTEK substation. This will enable power engineers to localize the emergency area and optimize the process of eliminating the emergency situation.
The report notes that this is one of the most important overhauls of key equipment in the workshop this year, replacing outdated electrical equipment with modern automated equipment. In particular, this is a new level and a modern approach to the process of operational switching, which will now be performed remotely – automatically, using a control key, without the physical presence of employees at the switching device.
“This is a significant step towards improving the safety of our personnel. As a result, we expect to have a modern, reliable power supply system for an important part of the enterprise, as well as improved conditions and increased safety for the personnel of the Central Power Plant,” explained Mikhail Revin, assistant head of the network and substation engineering department, whose words are quoted in the report.
Currently, the old equipment has been completely dismantled at the repair site, and excavation work is underway to pour the foundations for the new equipment. After that, repair specialists will begin its installation.
Kametstal is part of the Metinvest Group.
Ukrenergo National Energy Company will finish construction of the Kreminska substation with a power capacity of 500/220 kV (Kreminna town in Luhansk region) by the end of May 2020, Ukrenergo operations director Volodymyr Kudrytsky said at a press conference in Kyiv.
“Kyiv Energy Construction Company in Ivano-Frankivsk, one of the biggest companies Ukrenergo is working with, won the bids in 2017. At present moment, it is building the facility. May 2020 is an expected date of completion of the building works,” he said.
Kudrytsky reminded that the term for completion of the works was scheduled for December 2018. However, these terms have been shifted over the Cabinet of Ministers’ delay to approve the design documentation and settling the issues with land acquisition. Kyiv Energy Construction Company in order not to waste time started to buy necessary equipment and machinery before the government approved the documentation.
According to company’s operation director, the cost of construction now totals UAH 1.3 billion, while the Cabinet of Ministers initially appraised it at UAH 1.7 billion.
He also reported that Ukrenergo was working over the project on increase of the capacities of Luhansk thermal power plant (TPP).
“To provide distribution of Luhansk TPP in full, at a moment we initiated building of another facility, it is on the stage of design. This is a 220 kV transmission line from Luhansk TPP to Yuvileina power substation,” he said.
As reported, construction of Kreminska substation launched two years ago.
The Kreminska substation will make it possible to synchronize the electricity supply system in the northern Donbas with Ukraine’s Integrated Power System (IPS) and provide a stable link to that system.
Consumers in the northern part of the Luhansk region are only supplied by coal-fired Luhanska TPP. Previously, the fuel was delivered to the station by rail through Russia, but today deliveries have ceased completely being blocked by the Russian Federation.
Now the station runs on gas, which is much more expensive than coal. This is economically disadvantageous. In addition, the station is located in close proximity to the war zone, and its continued operation is constantly under threat. These factors pose significant risks of complete shutdown of the Luhanska TPP. At the same time, due to damage to power grids as a result of hostilities, only two 110 kV transmission lines now connect the Luhanska power unit with the power grid of Ukraine. Their capacity, with no generation at the Luhansk TPP, is only 110MW. Meanwhile, the power unit’s consumption is from 140 MW at night to 220MW in the evening peak. Thus, if the operation of the Luhansk TPP stops in any reasons, the region won’t be provided with electricity as strongly as required.
Mykolaiv-based Svitlolux-Elektromontazh LLC by the end of 2019 is going to build a power distribution substation 35 kV to connect it to a solar power plant Solar South 1 with a capacity of 19.2 MW (Vitovsky district of Mykolaiv region) on the territory of JSC Mykolaivoblenergo.
According to ProZorro, the parties signed a respective agreement worth UAH 2.4 million on August 8.
According to the Single Register of Legal Entities and Individual Entrepreneurs, Solar South1 belongs to Solar Generation company, which owned by France Bonté.
Podilsky Energoconsulting LLC under a contract with PJSC Zaporizhiaoblenergo will reconstruct the Robocha substation to connect Scythia Solar 2 photovoltaic power plant with a capacity of 33 MW belonged to UDP Renewables of businessman Vasyl Khmelnytsky.
The cost of the contract signed on June 3, 2019 is UAH 20.641 million, according to the ProZorro e-procurement platform.
According to a posting on the website of UDP Renewables, the start of the operation of Scythia Solar 2 photovoltaic power plant is scheduled for September 2019.
The plant is located on the territory of Kostiantynivka rural council of Melitopol district of Zaporizhia region.
As reported, UDP Renewables on March 1, 2019 launched Scythia Solar 1 photovoltaic power plant with a capacity of 13 MW in Zaporizhia region. Investment in the project totaled $10.1 million.
KNESS (Podilsky Energoconsulting LLC is a member of the goup) acted as general contractor and Ukrgasbank (Kyiv) acted as a financial partner.
According to UDP Renewables, its plans include an increase in the 2 photovoltaic power plants portfolio to 175 MW in 2019.
PJSC Zaporizhiaoblenergo by September 2019 will reconstruct the 150/35/10 kV Likarniana substation due to the connection of a Solen Energy LLC solar power station in Zaporizhia.
The announcement of the signing of a relevant agreement with Assembly and Construction Company Synergy LLC on March 14 was published in the ProZorro system.
Development and Construction LLC also participated in the auction.
In May 2018, Zaporizhia City Council allocated 36 hectares for Solen Energy LLC on the Orikhivska highway.
According to Solen Energy’s website, the station’s capacity is 19.9 MW, the construction contractor is SIS LLC. The station has Risen and Longi modules with a capacity of 345 W and 365 W each, as well as ABB inverters with a power of 120 kW. In February, open hearings on providing feed-in tariffs to the station were held in Zaporizhia.
RECONSTRUCT, SOLAR PLANT, SOLEN ENERGY, SUBSTATION, ZAPORIZHIAOBLENERGO
