Page 49 - UKRRptAug21

The programme is made up a $212mn financing package, including a $177mn International Bank of Reconstruction and Development (IBRD) loan, a $34mn Clean Technology Fund (CTF) concessional loan, and a $1mn CTF grant for a new project in Ukraine – Improving Power System Resilience for European Power Grid Integration (Installation of Hybrid Systems for Electricity Production in Ukrhydroenergo).
The project will enhance the flexibility of the Ukrainian power system to help synchronize it with the European electricity grid and decarbonize the power sector.
The Ukrainian Private Joint Stock Company Ukrhydroenergo (UHE) is the borrower and implementing agency of the project. The project provides financing for the installation of 197-megawatt short-duration battery energy storage systems combined with solar power plants within four hydropower plant sites (Kyiv, Kaniv, Kremenchuk and Seredniodniprovska) to further allow for ancillary services to the national power grid. Also, a long-duration battery with a solar power plant will be installed within Dniester Hydro Power Plant.
The World Bank’s financing will help mitigate technical risks associated with synchronizing Ukraine’s power grid with the European electricity grid and will help decarbonize it by facilitating greater integration of renewable energy.
Power grid synchronization is a national strategic objective that will result in the creation of competitive and transparent electricity markets aligned with EU regulations and market practices. It is a key milestone on the journey to closer integration with European markets, and will bring tangible benefits for Ukraine, including enhanced reliability and security of electricity supply through diversification of energy sources, and access to the EU’s market. The project will also help enhance private sector engagement in electricity storage.
Ukraine’s National Energy and Utilities Regulatory Commission (NEURC) held an emergency meeting to stabilize the electricity market after prices plummeted on the day-ahead segment, the regulator reported on July 5. The price crash on July 2-4 was caused by falling demand from electricity buyers who wield significant market power, including the company D.Trading, which is part of oligarch Rinat Akhmetov’s energy conglomerate DTEK. Ukraine’s energy market, which was launched on July 1, 2019, has four segments: two-way deals, the day-ahead market, the same-day market and the emergency balancing market. On the day-ahead market, participants buy and sell electricity for the following day at binding prices. NEURC ordered the country’s grid operators to buy enough electricity on the day-ahead market to compensate for losses. The regulator also imposed a limit on how much electricity a producer can sell to a company that’s part of the same vertically-integrated business. It must not exceed half of a producer’s monthly electricity sales. Finally, the regulator set a price floor, below which market participants are not allowed to bid until July 8.
49 UKRAINE Country Report August 2021 www.intellinews.com