Ukraine needs to invest $15 billion to modernize the energy system

Ukraine needs to invest $15 billion to modernize the energy system shutterstock
Katerina Belousova

New generation facilities must be built according to new technologies and principles of the green transition

Volodymyr Kudrytskyi, the chairman of the board of NEC "Ukrenergo", said that within 5-10 years, Ukraine should invest $15 billion to increase the capacity and flexibility of the energy system.

The company developed the so-called investment menu to make the energy mix cheaper and more environmentally friendly, reports "Ukrenergo" on Facebook.

According to Ukrenergo's calculations, this money should be invested in:

  • 4.5 GW wind power plants – $5.4 billion;
  • 3.8 GW solar power plants – $2.5 billion;
  • 1.1 GW TPP on biofuel – $1.2 billion;
  • 1.4 GW of highly maneuverable thermal power plants – $1.1 billion;
  • 2 GW hydro-accumulating power plants "GAES" – $3.7 billion.

facebook.com/npcukrenergo

Kudrytsky emphasized that it will be possible to attract funds only if the market environment in Ukraine will contribute to the return of these investments. To attract investors, it is necessary to ensure:

  • absence of debts in the electricity market;
  • the possibility of concluding long-term contracts in the market of auxiliary services;
  • full synchronization of the rules of operation of the Ukrainian electricity market with the rules of the European markets.

"Then Ukraine will certainly have huge competitive advantages even over its neighbors. We are ready to build power plants faster, perhaps at a slightly lower price. This way, Ukraine will be able to become a big magnet for energy investments, and they will lead us to a more secure, and cheaper for the final consumer of the energy system. And this should give impetus to the competitiveness of the Ukrainian economy," he said.

Kudrytskyi explained that new generation facilities must be built according to new technologies and principles of the green transition, without using such expensive fuels as gas and coal.

He added that the transformation of the energy system should take place primarily at the expense of private investors.

Earlier, EcoPolitic wrote, that Oleksiy Chernyshov, the head of Naftogaz of Ukraine, said that the company had decided to invest in the construction of two wind and one solar power plants.

As EcoPolitic previously reported, more than 60 countries support the agreement between the EU, the US and the UAE to triple the use of renewable energy by 2030 and to abandon the use of coal.

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