The second electricity transmission project


The purpose of the project:

Other

Key spending unit
Ministry of Energy of Ukraine
Functional classification of expenditures and budget crediting
0433 - Електроенергетична галузь
Target priority of the government
990100 - Інші пріоритети Уряду
Score
4.4325

Basic data

Detailed description of the project

Agreement on a loan between Ukraine and the IBRD dated 10/02/2015 No. 8462-UAAgreement on a loan of the Clean Technologies Fund between Ukraine and the IBRD dated 10/02/2015 No.TF017661Agreement on providing a grant to the Trust Fund of one donor for the co-financing of the Second Electricity Transmission Project in Ukraine (Additional financing for the Second project on the transmission of electricity) between Ukraine and the International Development Bank and the IDA dated 18.07.2023 # ТF0С819 Project outlinePart 1 "Reconstruction of transformer substations" (funds  MBRR): Central ES: Substation 330 kV "Novokiivska"; Substation 330 kV "Nivky", Substation 330 kV "Zhytomyrska", Substation 330 kV "Cherkaska". Northern EC: Substation 330 kV "Kremenchuk", Substation 330 kV "Sumi". "Rivne", 220 kV substation "Kalush",  Bogorodchany 330 kV substation, Ivano-Frankivsk 330 kV substation, Boryslav 220 kV substation and Substation 330 kV "Kovel". Part 2.1 "Installation and connection of reactive power compensating devices for 5 substations 220/330 kV: Substation 330 kV "Novovolynsk", 220 kV "Lutsk South", 330 kV "Kovel" , 330 kV "Shepetivka", 330 kV "Kamyanets-Podilska"; Part 2.2 "Smart networks" (implementation of advanced technologies of intelligent management of energy systems and networks to optimize their functioning, ensure safety, reliability and efficiency of electricity transmission in the conditions of integration of renewable energy sources in the UES of Ukraine. According to the Grant Agreement dated 07/18/2023, additional funding in the amount of 37, EUR 74 million for the implementation of measures to install STATCOM reactive power control devices at 4 330/750 kV substations within the framework of the Project: Substation 330 kV "Novokiivska", Substation 750 kV "Vinnytsia", Substation 330 kV " Kremenchuk, Substation 330 kV "Konotop") (funds of the FCT, grant funds of the MBRD/MAR); Part 2.3 "Balancing market" (implementation of the system of information technologies and related means of communication to fulfill the duties of the System Operator of the Balancing Market) (funds of the MBRD); Part 2.4 "Institutional Development of Ukrenergo" (implementation of the information management system, audit, services in the Company consultants, staff training) (funds of the IBRD).

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Problems

Current status, description of problems and needs for their solution
The project is at the final stage of its implementation. Within the framework of the Project, 42 contracts were concluded, of which 17 contracts were implemented. At the moment, due to force majeure, preparations are underway for the early completion of 5 contracts within the scope of the actually performed works. The expected completion date of other contracts is June 2025.  increasing the level of reliability of high-voltage substation equipment,  reducing the probability of emergency situations in the operation of the electricity transmission system,  reducing the risks of interruptions in the supply of electricity for the population and industry,  improvement of the conditions for increasing the efficiency of the operation of the United Energy System of Ukraine by increasing the reliability of the electricity transmission system,  improvement of the situation with compensation of reactive power in networks, which will create technical conditions for closer integration of the UES of Ukraine into the European Network of Electric Power Transmission System Operators (ENTSO-E),  creation of prerequisites for the effective functioning of the electricity market in Ukraine.
A detailed description of the project goal and the way to achieve it
The goal of the project is to increase the reliability of the electricity transmission system, create prerequisites for the introduction of a full-scale electricity market and its effective functioning, which will allow Ukraine to become an important and full-fledged player on the European electricity markets.

Coordination of the project with strategic documents

Sphere development strategies
The project complies with the provisions of the Energy Strategy of Ukraine for the period until 2050, approved by the order of the CMU of April 21, 2023 No. 373.

Involved organizations

Organization
MINISTRY OF ENERGY OF UKRAINE
Roles
  • Project author
  • An initiator
EDRPOU code
37552996
Organization
PRIVATE JOINT STOCK COMPANY "NATIONAL ENERGY COMPANY "UKRENERGO"
Roles
  • A balance holder
  • An executor
  • An initiator
  • Beneficiary
EDRPOU code
00100227

Demand for the service and its dynamics

Category
Year
Rating
Measure

Project indicators

Indicator
Base value
Target value
Other
0
1

Risk assessment

Risk
Category
Degree
Probability
Strategy
force majeure circumstances related to the armed aggression of the Russian Federation against Ukraine
Other risk
Critical
High
Reduction

Project plan

Implementation
Financing
Preparation
Budgeting
Appraisal
Assessment
Technical design
Feasibility study
3997 days
3286 days
3286 days
3286 days
364 days
364 days
364 days
364 days

Documents

Name
Date
Concept_PPE-2_i_STATCOM_14-08-2024.docx
Common document
21.08.2024
13:58:06 UTC

Gallery

DREAM Code

DREAM-UA-190824-ED9A827B

Status

Active

Create date

19.08.2024

Estimated budget

14'280'000'000

Project creator

MINISTRY OF ENERGY OF UKRAINE

Initiator

MINISTRY OF ENERGY OF UKRAINE. PRIVATE JOINT STOCK COMPANY "NATIONAL ENERGY COMPANY "UKRENERGO"

Implementer

PRIVATE JOINT STOCK COMPANY "NATIONAL ENERGY COMPANY "UKRENERGO"

Project implementation period

01.22 - 12.25

Geography

The territory of Ukraine

Classification of sectors of economic activity according to the taxonomy of the World Bank

LT - Energy Transmission and Distribution