World Bank allocates $ 212 million for the integration of the energy grid of Ukraine and the EU
June 30, Washington DC Board of Directors of the World Bank approved funding package in the amount of 212 US $ 177 million, under which US $ 177 million was provided by the International Bank for Reconstruction and Development, and the Clean Technologies Fund allocated on concessional terms a loan of US $ 34 million and a grant of US $ 1 million for the implementation of the project "Ukraine - Improving the Sustainability of the Energy System for the European integration of the energy grid "(Installation of hybrid systems for the production of electricity in JSC" Ukrhydroenergo ").
According to the authors, the project will increase the flexibility of the Ukrainian energy system, will help in synchronization with the European energy network and decarbonization of the energy sector.
Ukrainian private joint stock company "Ukrhydroenergo" acts as a borrower and an organization executing the project. Funding is being provided for the installation of 197 MW of energy storage systems in combination with solar panels at four hydroelectric power plants in Ukraine, which are planned to be attracted to provide ancillary services to the national electricity grid.
“World Bank funding will help mitigate the risks associated with the synchronization of the Ukrainian energy system with the European energy network and will help decarbonize it by supporting greater integration of renewable energy. Synchronization of electricity grids is a strategic goal at the national level aimed at creating a competitive and transparent electricity market in accordance with the requirements of European legislation and market practices. This is a key step towards greater integration with European markets and will provide tangible benefits for Ukraine, in particular improved reliability and security of energy supply through diversification of electricity sources, and access to EU markets. The project will also help to increase the level of involvement of the private sector in the accumulation of electricity ", - said in Ukrhydroenergo.
“This is one of the most innovative projects launched by the World Bank in the Europe and Central Asia region. It will help Ukraine integrate its energy system into the European energy grid, reduce stakeholder influence, and help achieve greater energy independence. I am delighted that the project will also help join the European Green Deal, ”said Arup Banerjee, World Bank Regional Director for Eastern Europe.
The World Bank's current portfolio of investment projects in Ukraine is approximately US $ 3.4 billion in 11 ongoing investment projects and one ongoing Results Program. The investment supports the improvement of basic public services that directly benefit ordinary people in areas such as water, sanitation, heating, electricity, energy efficiency, roads, social protection, education and health, and private sector development. Since Ukraine joined the World Bank in 1992, the Bank has committed more than $ 13 billion to the country through approximately 80 projects and programs.