National Energy Company Ukrenergo began reconstruction of six substations in the western region of the country׃ Ivano-Frankivsk, Bohorodchany, Rivne and Kovel with a voltage of 330 kV, as well as Kalush and Boryslav with a voltage of 220 kV for the funds of the International Bank for Reconstruction and Development (IBRD) with a total of EUR 60 million.
According to the press service of Ukrenergo, the implementation of this project will enable to increase the reliability of the region’s transmission system, reduce technological losses of electricity and operating costs, transfer substations to automated work with the possibility of remote control from the main dispatch center.
“The reconstruction of these substations is financed by the International Bank for Reconstruction and Development within the framework of the Second Power Transmission Project. It should be noted that this is an additional component of the project, the implementation of which became possible due to significant savings achieved during the international public bidding for the basic volume of the project,” Investment Director of Ukrenergo Oleh Pavlenko said.
Reconstruction of six substations provides, in particular, the complete replacement of 330-110 kV switchgears at all substations, the installation of an automated process control system (APCS) for remote monitoring and control of substation equipment, the construction of new premises for relay protection of equipment and general control points of a substation.
As part of the work, contracts were signed with three foreign companies: Chinese-based Xian Electric Engineering Co. Ltd, the Turkish consortium Balikesir Elektromekanik Sanayi Tesisleri A.S. and BEST Elektrik Taahhut Ve Ticaret A.S., as well as with the Kazakh ASPMK-519.
The work is being carried out within the framework of a comprehensive substation automation program, which provides for the reconstruction of all Ukrenergo substations with the introduction of automated process control systems.
The program is aimed at improving the reliability of the power transmission system, creating a technical base for introducing smart grid technology in backbone networks, ensuring the level of reliability and security of the network in accordance with the ENTSO-E requirements.
At the first stage, 57 substations will be reconstructed by 2025, which are formed into nine investment packages. Four more investment packages provide for the reconstruction of 38 substations.
After tests at power unit No. 3 of Yuzhnoukrainsk nuclear power plant (NPP), the program for testing excitation systems of turbine generators of power units of Ukrainian NPPs, included in the catalog of measures of the agreement on the terms of future integration of the united energy system of Ukraine with the European Network of Transmission System Operators for Electricity ENTSO-E, has been successfully completed.
According to the website of Energoatom, in addition to specialists of Energoatom and Ukrenergo, representatives of the ENTSO-E Consortium and DMSS-Engineering with the support of the USAID Energy Security Project took part in testing the excitation systems of turbine generators.
The company recalled that Energoatom began this program on August 17, 2020 together with Ukrenergo as part of checking the compliance of the domestic generation with the ENTSO-E technological standards. Corresponding tests were carried out at power unit No. 2 of Rivne NPP, No. 1 of Zaporizhia NPP, as well as power units No. 1 and No. 3 of Yuzhnoukrainsk NPP.
According to Energoatom, on the basis of research data, the ENTSO-E Transmission System Operators Consortium (EMC, MAVIR, PSE, SEPS, 50Hertz and Transelectrica) will create a common mathematical model of the synchronous operation of the Ukrainian and European power systems. Also, this information will be used to study the static and dynamic stability of the united energy system of Ukraine, provided that it works in parallel with ENTSO-E.
Energoatom noted that Ukrenergo signed a service contract for the implementation of this item in the catalog of events with the CONSORTIUM in 2019.
At the same time, commenting on the completion of the tests, the Ministry of Energy noted on the website that in addition to the planned technical measures, in order to successfully complete the synchronization, it is necessary to certify the transmission system operator in accordance with the requirements of the Third Energy Package of the EU.
ENERGOATOM, ENERGY SYSTEM, ENTSO-E, SYNCHRONIZATION, UKRENERGO
NPC Ukrenergo and Hungary’s power transmission system operator Mavir ZRt first signed an emergency power exchange agreement.
The press service of Ukrenergo reported that the agreement would allow the two operators to supply electricity to their areas of power supply and frequency regulation to prevent emergency or remove its consequences in power systems.
“The largest capacity of emergency assistance is up to 200 MW. The amount of emergency assistance can be increased to more than 200 MW by mutual agreement of the parties, if there are adequate technical capabilities, available reserves and available inter-zone capacity. The capacity for emergency assistance is not reserved in advance,” the company said.
The company said that agreements on emergency energy exchanges with neighboring countries are prescribed by ENTSO-E’s general rules to create additional reserve mechanisms to enhance the reliability of power systems during synchronous operation of the Burshtyn TPP Island and ENTSO-E.
As reported, in August 2019, Ukrenergo and Poland’s Polskie Sieci Elektroenergetyczne (PSE) signed the emergency power exchange agreement.
PrJSC Ukrenergo saw a net loss of UAH 18.31 billion in January-June 2020 compared to UAH 1.765 billion of net profit over the same period in 2019.
According to a report presented by the national energy company, its net income increased by seven times (by UAH 21.698 billion), to UAH 25.299 billion, in H1, 2020. Its gross loss amounted to UAH 16.756 billion in January-June 2020 against UAH 2.93 billion of gross profit over the same time in 2019.
As reported, Ukrenergo in 2019 reduced its net profit by 28.4% (by UAH 738.63 million) compared to 2018, to UAH 1.864 billion. Its net income over the past year increased by 4.4 times, to UAH 26.326 billion, gross profit doubled to UAH 6.245 billion, EBIDTA rose by 20.4%, to UAH 4.062 billion.
Ukrenergo operates trunk and interstate power grids, as well as performs the centralized dispatching of the country’s combined energy system. It is subordinate to the Ministry of Finance.
The European Bank for Reconstruction and Development (EBRD), together with Ukrenergo, is developing a project of building a 200 MW energy storage system to regulate frequency in the energy system, Olga Yeriomina, the EBRD senior banker for power and energy projects, said.
“The EBRD, together with Ukrenergo, is really working on a project to build an energy storage facility that would not need a feed-in tariff and that could solve the issue of regulatory capacities and reduce the price of electricity in the market. We are considering the possibility of financing a 200 MW construction,” she said at an online meeting at the Energy Club.
She clarified that the matter concerns a project, which is to be financed through an EBRD loan under state guarantees.
“With regard to regulation, Ukrenergo is obliged to provide system services, and these 200 MW will not participate in trading in the market, this will be a system service. An increase in the current tariff of the operator will not be required,” she added.
At the same time, she noted the growing need of the Ukrainian energy system for balancing capacities, which causes the need for the fastest government decisions in this direction.
“We see the situation with the shutdown of nuclear power plants. It’s hard for us now to figure out where the technical necessity is, where repairs are needed, and where administrative intervention is. But the faster the Ukrainian government structures would support our project idea, the faster the issue of flexible generating capacities would be resolved. There are a lot of distortions in the market, and we need to make up for time, take quick and decisive steps,” the banker said.
NEC Ukrenergo is working on a project to create its own research and development (R&D) office and expects to present its own vision of the office’s activities and tasks by the end of 2020.
“Ukrenergo has a consultation project with RTE International, and one of the cases of this project is to support us in creating R&D office of Ukrenergo. Now we are working on writing a roadmap, developing a structure, creating human resources, and formulating office’s tasks. I think that we will be able to present some specific developments by the end of the year,” Head of Strategic Planning and Analysis Division of NEC Ukrenergo Natalia Slobodian said during an online meeting at Energy Club on Thursday, April 30.
She said that R&D office will focus on solving the main problems in the energy system, optimizing the work taking into account changes in the economy, and quickly responding to challenges like those created now due to the coronavirus disease (COVID-19) pandemic.
“Ukrenergo has rather ambitious plans to follow national and global trends in creating leading and innovational products,” Slobodian said.
In her opinion, the benefits of state-owned companies from the creation of R&D offices are obvious, as concern for innovation increases the financial and investment attractiveness of enterprises, allows them to create highly intelligent jobs, and also makes the enterprises attractive to young professionals.
She also said that there is an opportunity to involve grant support for the work of such offices, and additional financial resources are not required for the commercialization of the products they create.
“There is no need to spend money on the commercialization of all the products that R&D offices make. They immediately test the products in market conditions and at once bring them to the market, creating demand in this way,” Slobodian said.
Ultimately, in her opinion, all efforts to introduce innovative technologies are aimed at improving the quality of customer service and providing them with additional opportunities. “The beneficial owner is a consumer by 100%. He gets a stable energy supply, cheap electricity and the opportunity to get market benefits via innovation,” Slobodian said.
