A EUR100 million grant agreement has been signed by Volodymyr Kudrytskyi, Chairman of the Board of NPC Ukrenergo, and Lorenz Gessner, Head of the Representative Office of the German state development bank KfW in Ukraine, the company said.
According to its Telegram post on Friday, the signing took place in Kyiv on Thursday in the presence of Deputy Energy Minister Roman Andarak and members of the EU Delegation to Ukraine.
It is noted that the European Commission has authorized KfW to provide Ukrenergo with funds from the EU’s special budget program Ukraine Investment Facility and to ensure the financing and implementation of a number of priority energy projects.
These include the modernization of high-voltage substations in the western regions of Ukraine and the development of interconnectors connecting it to the power system of continental Europe, as well as the repair and restoration of equipment destroyed or damaged by Russian shelling at high-voltage substations, and the purchase and supply of new equipment.
In addition, part of the funds should be used to strengthen the physical protection of Ukrenergo’s substations.
NPC noted that this grant is the second phase of the target program “Reconstruction and Restoration of Ukraine’s Electricity Transmission Infrastructure”, as the company signed an agreement with KfW on the first phase of the program worth EUR 15 million at the Berlin Conference on the Restoration of Ukraine-2024 in June.
In total, since the beginning of the full-scale war, Ukrenergo has attracted EUR324 million with the support of KfW, and the total amount of international assistance attracted amounted to EUR1.5 billion, the NPC summarized.
State-owned energy trader Energy Company of Ukraine (ECU) has transferred UAH 100.4 million in dividends to the state budget of Ukraine based on the results of its operations in 2023.
In a press release on Monday, the company said that by doing so, it became the first company to make such payments among all enterprises managed by the State Property Fund (SPF) of Ukraine.
“Today, our primary focus is to ensure reliable supply of electricity to Ukrainian consumers in the face of energy shortages. To this end, we are increasing imports, developing cooperation with electricity producers, and launching new products and services. At the same time, our activities create new sources of revenue for the state in a very difficult period for the Ukrainian economy,” commented Vitaliy Butenko, CEO of ECU.
According to Vitaliy Koval, Head of the SPFU, ESU demonstrates how state assets can work and generate significant profits for the state, and the dividends paid by the company will be a significant contribution to the state budget, which, in particular, finances the Ukrainian Defense Forces.
The company noted that the amount of dividends paid by it in the first five months of commercial activity in 2022 amounted to UAH 27.1 million.
As reported, Energy Company of Ukraine JSC is a national energy trading company established in the summer of 2022 that carries out operations for the purchase, sale and supply of energy resources, in particular through import and export operations.
“The company is one of the top 5 traders in Ukraine in terms of electricity sales and founded the first state-owned balancing group of electricity market participants, currently the second largest in Ukraine. The company is 100% owned by the state.
In 2023, the net profit of the company amounted to UAH 148.9 million, which is more than four times higher than in 2022, and contributions to the state budget amounted to UAH 209.4 million.
The Cabinet of Ministers of Ukraine has approved the payment of UAH 207.883 million in dividends by NPC Ukrenergo, which is 90% of the company’s consolidated profit for 2023, reduced by the amount of income from the distribution of cross-border crossing capacity last year.
The relevant decision is enshrined in the Resolution of the Cabinet of Ministers No. 589-r dated June 28, 2024, the text of which is published on the government portal.
Earlier, Volodymyr Kudrytskyi, CEO of Ukrenergo, reported that the NPC received about UAH 400 million in profit for UAH 83 billion in revenue in 2023.
The situation in the Ukrainian energy system next week will be perceptibly more difficult compared to the current week, said the Chairman of the Board of the NEC Ukrenergo Volodymyr Kudrytskyy.
“Next week will be more difficult for the energy system, because the heat wave will return and we will have a reduced capacity of nuclear power plants, if compared to the current week,” he said in an interview with Ukrayinska Pravda on Friday.
According to the NEC head, due to the massive shelling, the energy system has lost its reserve of strength and has become dependent on sudden changes in electricity consumption and weather, forcing it to balance by shutting down consumers.
“Our energy system, having lost more than 9 GW of capacity due to shelling, now has no reserve of strength. If earlier we had additional power plants that could be switched on promptly, we would overlap by switching on some hydro units or TPP units, now we simply do not have such a maneuver,” – explained Kudrytskyy.”
As previously reported, Energoatom announced that it would put a 1000 MW nuclear power plant unit under repair as part of a planned repair campaign in 2024. The company pointed out that, given this and the increase in electricity consumption in July, the generation deficit in the power system may increase.
Prime Minister Denys Shmygal noted that saving e/e will be part of Ukraine’s daily life in the coming years due to Russian attacks on the country’s energy sector.
Due to weather conditions as of Wednesday morning 237 settlements in Zhytomyr, Kyiv, Sumy, Khmelnytskyi, Cherkasy, Chernihiv regions and Kyiv remain without power supply, another 490 settlements are without power due to other reasons, including military operations, NEC Ukrenergo reported in Telegram.
According to the Ministry of Energy, the most settlements – 117 – without light in Kyiv region, another 46 – in Chernihiv region, 42 – in Khmelnytskyi, 14 – in Cherkasy, 13 – in Zhytomyr region and 5 – in Sumy region. In total, according to his information, without light 38 thousand subscribers.
According to Ukrenergo, the process of connecting consumers in Sumy region, where one of the energy facilities was damaged during a night drone attack, is ongoing. According to the Ministry of Energy, the Russian Federation attacked by drones a substation of the oblenergo in the border territory of Sumy region, as a result of which 1,016 subscribers in 14 settlements were de-energized.
At the same time, as Ukrenergo notes, it managed to promptly restore power supply to consumers in Kherson, who were de-energized due to the shutdown of several power facilities in the region during the air alert. Damage to buildings and equipment of one of them was discovered during the inspection.
In general, there is still a deficit in the energy system, as a result of which hourly shutdown schedules, as announced earlier, will be applied from 15:00 to 23:00.
At the same time, a record volume of imports from Romania, Slovakia, Poland, Hungary, Moldova is scheduled for today – 29,796 MWh with a maximum capacity in some hours up to 1,689 MW, which corresponds to the maximum possible value. The last record was recorded on Saturday – 29,100 MWh.
NEC “Ukrenergo” plans to apply schedules of hourly shutdowns all day Thursday.
As noted by the system operator in its Facebook on Wednesday evening, this is due to the expected cloudiness for tomorrow, which will reduce the production of electricity by solar plants.
It also clarifies that the GGOs concern both the population and industry.
As reported, today GPOs apply from 19:00 until the end of the day.
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