Ukrenergo intends to invest over UAH 7 bln in network development in 2021
NPC Ukrenergo plans to invest UAH 7.128 billion in network development in 2021, according to the company's website last week.
According to the report, UAH 5.43 billion (76%) is planned to be invested in technical re-equipment, reconstruction and equipment acquisition, UAH 1.698 billion (24%) – in new construction.
At the same time, more than 75% of all investments are loans attracted by NEC Ukrenergo from international financial institutions, in particular the International Bank for Reconstruction and Development (IBRD), the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the German government's bank KfW. The rest of the financing is the company's tariff and own funds.
The increase in the share of debt financing is a component of the investment policy of Ukrenergo, which has been pursued by the company for over five years. This policy makes it possible to attract loans for an average of 20 years at low interest rates (up to 3%), which reduces the burden on the company's tariff, Ukrenergo said.
"In 2021, Ukrenergo plans to enter the final stretch in the implementation of the substation power equipment replacement program. We will also focus on comprehensive reconstruction and automation of substations, implementation of projects to ensure the reliability of energy supply to border and front-line regions in eastern Ukraine," Investment Director of Ukrenergo Oleh Pavlenko, quoted by the press service, said.
According to him, the implementation of all these measures will help Ukraine to confidently go through the period of isolated operation of the power system, preceding integration into ENTSO-E, as well as increase the technological level of equipment and control systems to European standards.