Ukrenergo signs agreement on financing consulting services on joint contracts with KfW
National energy company Ukrenergo and KfW (Germany) have signed an agreement on providing grants to finance consulting service in joint projects, the company's press service has reported.
The press service said that the grants are provided from the special fund of the Federal Ministry of Economic Cooperation and Development of Germany (BMZ) via KfW to finance advisors to be selected and contracted by Ukrenergo.
In particular, one of the agreements provides for financing of monitoring services for the implementation of the current project entitled "Reconstruction of Substations in Eastern Ukraine." The second agreement provides for the preparation and monitoring of the implementation of a new project entitled "Improving Energy Efficiency in Power Transmission (Reconstruction of Transformer Substations) II."
The agreements signed on September 6 provide for the selection one of the best European companies that will manage the implementation of projects on behalf of Ukrenergo at an open tender, in accordance with the criteria of KfW.
"The implementation of these projects is aimed at upgrading substation equipment, increasing energy efficiency by reducing technological losses in networks, ensuring the reliability of the operation of the main electricity grids and the power supply to consumers," Ukrenergo said.
According to Director for Investments and Strategy of Ukrenergo Volodymyr Kudrytsky, the project to increase the energy efficiency of power transmission will become a pilot project for the full automation of nine substations of the southwestern region at the expense of Germany.
"This level of complex modernization of substations will be one of the real steps of Ukrenergo to implement the catalog of measures for the possibility of integrating Ukraine's united power grid into the European ENTSO-E network of systemic operators," he said.
Ukrenergo operates trunk and interstate power transmission lines and provides centralized oversight of the integrated power grids. It is a state company run by the Energy and Coal Industry Ministry.
