Ukrenergo signs memos with EBRD, IFC on developing networks, energy storages
National Energy Company Ukrenergo in the framework of the RE:think. Invest in Ukraine investment forum held in Mariupol has signed a memorandum of cooperation with the European Bank for Reconstruction and Development (EBRD) to develop power grids in the south of Donetsk region and the development of battery energy storages systems (BESS) for regulating frequency and power in the Ukrainian energy system.
"The EBRD is currently the largest creditor of our company, which allows us to quickly catch up with the renewal of our trunk power lines. I hope that the new project will be prepared at a high pace, will give new opportunities and new flexibility to our electric power system to meet the new challenges of tomorrow," Head of Ukrenergo Vsevolod Kovalchuk said after signing the document on Tuesday in Mariupol during the RE: think. Invest in Ukraine investment forum.
Ukrenergo also signed a technical assistance agreement with IFC, which will help develop an auction mechanism to attract private investment in the development of energy storage systems in the country.
"This project is a continuation of the first memorandum that our company signed with the EBRD. It has the government's part of investments in the development of energy storage systems, and IFC, which traditionally accompanies private business, will jointly develop the legal part for holding auctions with us," Kovalchuk said.
"It is impossible to solve this problem solely through the efforts of investments in the public sector [the rapid development of renewable energy and the need for appropriate regulation of frequency and power], therefore it is very important to create investment and institutional opportunities for attracting private capital to new sectors of the economy," the head of the company said.
Ukrenergo operates trunk and interstate power transmission lines, as well as performs the centralized dispatching of the country's united energy system. It is subordinate to the Ministry of Finance.