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World Bank approves 212 million US dollars financing package for Ukraine’s power grid synchronisation

The World Bank approved a 212 million US dollars financing package for a new project in Ukraine called Improving Power System Resilience for European Power Grid Integration. The project will enhance the flexibility of the Ukrainian power system to help synchronise it with the European electricity grid and decarbonise 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.

“This is one of the most innovative projects that the World Bank is launching in the Europe and Central Asia region,” said Arup Banerji, World Bank Regional Country Director for Eastern Europe. “It will help Ukraine integrate its power system with the European power grid, reduce the influence of vested interests and contribute to the achievement of a more energy independent Ukraine. I am pleased that the project also helps Ukraine align with the European Green Deal.”

Power grid synchronisation 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.

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