Energy efficiency in the transmission sector (modernization of substations) II (Inv.)

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Ukraine is one of the most energy-intensive countries in the world. This reduces the competitiveness of companies and has a negative impact on the employment situation in the country. The use of outdated and inefficient technologies in the electricity sector is a major factor in this. At 12% (2015), losses in the Ukrainian power grid are twice as high as in the EU. The efficiency potential in the power grid is estimated at 11 million t oe. The country is a member of the European Energy Community and is striving to synchronize its transmission network with the European interconnected grid CESA. As part of the so-called Substation Automation Program, all substations in the transmission network are to be modernized by 2027. The implementation is taking place in an environment that is characterized by a fundamental reorganization of the Ukrainian energy market and is intended to contribute to improved framework conditions for the sustainable operation of the transmission network in particular and to the medium-term stabilization of energy prices for end consumers. The FC measure is part of this Substation Automation Program. The aim of the FC measure is to make a significant contribution to a stable and efficient power supply in the Ukrainian power grid, especially in the south-western power grid. The FC measure is intended to modernize all nine substations in the south-western transmission grid in an energy-efficient manner and prepare them for automated control. The total cost of the measure is EUR 44.4 million. This is to be financed through an FC loan of EUR 32.5 million, grants of EUR 3.1 million and a contribution from the sponsor UKRENERGO.