EBRD Grants €149 Million Loan to Upgrade Ukraine’s Transmission

EBRD Grants €149 Million Loan to Upgrade Ukraine’s Transmission

European Bank for Reconstruction and Development (EBRD) has announced that it will provide a €149 Million Loan for the upgrade of Ukraine’s transmission network

Ukraine's Transmission EBRD

The European Bank for Reconstruction and Development (EBRD) has announced that it will provide a €149 Million Loan to support the upgrade of Ukraine’s transmission network.

The investment will help Ukrenergo upgrade its key transmission infrastructure required for the synchronisation with the European electricity networks. It will also assist Ukraine in aligning its legal framework and operational practices with the EU 3rd Energy Package.

Ukrenergo will use the 15-year sovereign-guaranteed loan to acquire up to 26 new transformers and carry out the automation and upgrade of 12 high-voltage substations in key locations of the Ukrainian transmission network. The loan will also contribute to the annual reduction of CO2 emissions by 20,500 tonnes.

The investment will strengthen Ukrenergo’s capacity to accommodate the growing share of renewables in the Ukrainian grid, with an increasing share of wind and solar power. A flexible, smart grid will be key to the sustainable electricity sector of the future.

EBRD financing is also promoting the commercialisation and institutional development of Ukrenergo through the implementation of a comprehensive Corporate Governance Action Plan and robust procurement standards.

The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made a cumulative commitment of almost €13.6 billion through 432 projects in the country.

Recently, we reported that in order to fulfill the vision of a USD 5 trillion economy over the next few years, India will require an estimated investment of Rs 5 lakh crore in the transmission sector, as per a new analysis by the Confederation of Indian Industry (CII).

According to the estimates, India will be consuming 1.8 trillion units by 2025 as the country’s growth trajectory accelerates, and this requires large investments in the transmission sector, particularly at the state level. The transmission sector has seen a fall in the investments to below 1.8 lakh crore in the last 5 years but this will need to see a significant jump as 500 GW of renewable energy will be added to the grid by 2030.

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Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.