For Ukraine approved investment plan for modernization of power grids and storage system

The Board of the Climate Investment Funds (CIF) approved for Ukraine a $116.2 million investment plan aimed at developing power grids, renewable energy and energy storage systems. This was reported by the Ministry of Energy.

It concerns the program "Integration of Renewable Energy Sources" (REI). It should help Ukraine increase electricity exchange capabilities with Europe, modernize key network facilities and attract private investment in large battery systems.

The program will consist of public and private components.

In the public part, jointly with the World Bank and NPC "Ukrenergo", an investment package worth about $200 million has been formed. One of its key projects will be the construction of the 400 kV Chernivtsi-Suceava interstate power transmission line between Ukraine and Romania.

According to the Ministry of Energy's calculations, the new interconnector will provide additional transmission capacity of 880 MW towards Ukraine and 445 MW towards European power grids.

This should increase Ukraine's ability to import electricity from the EU during periods of deficit and export it when there is surplus generation.

The public part of the program also provides for the modernization and strengthening of physical protection of five high-voltage substations, as well as the updating of IT, telecommunications and operational infrastructure of "Ukrenergo".

A separate block will concern the private sector. It is being developed by the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development.

The plan provides for support for private investment in electricity storage systems. In particular, it refers to autonomous battery energy storage systems (BESS) with a total capacity of 610 MW.

Such systems allow storing electricity in hours of surplus generation and feeding it into the grid during peak consumption or deficit. For Ukraine, they are also important due to the need to balance the power system after significant losses of traditional generation as a result of Russian attacks.

The private direction of the program also provides for the development of renewable generation in combination with storage and other distributed energy solutions.

According to First Deputy Prime Minister - Minister of Energy Denys Shmyhal, the implementation of projects should increase the resilience of the Ukrainian energy system and accelerate its further integration with the European network.

At the same time, $116.2 million is the amount of the CIF-approved investment plan, not funds already transferred to Ukraine. Individual projects within it will be implemented jointly with the World Bank, IFC, EBRD and other partners with the involvement of additional financing.

Based on materials from: Ministry of Energy of Ukraine.