NPC UKRENERGO

NPC Ukrenergo received EUR 86 million from the European Investment Bank. The funds will be used to build anti-drone protection at key substations of the electricity transmission system. ‘We are very grateful to our partners for their continued support. In the context of russian attacks on the power grid, the protection of key equipment at our substations is vital. The effectiveness of the already implemented projects was proven, in particular, during the recent massive missile and drone strikes in November and December. Work on the construction of protection is ongoing. The more substations we manage to protect, the more resilient the Ukrainian power system will be, the lower the risk of forced blackouts for consumers will be,’ said Oleksii Brekht, Acting CEO of NPC Ukrenergo. EIB Vice President Teresa Czerwińska said: ‘This €86 million investment is an important step towards strengthening Ukraine's power infrastructure in the face of ongoing military threats. By supporting NPC Ukrenergo in the construction of anti-drone shelters, we aim to ensure a stable supply of electricity across the country, meeting the needs of both civilians and businesses. The EIB remains a strong partner of Ukraine, working alongside its EU partners to rebuild and modernise critical infrastructure, including in the power sector, which is key to ensuring daily life, economic stability and the country's recovery’. Overall, since the beginning of the full-scale war, the European Investment Bank has provided NPC Ukrenergo with a total of EUR 136 million in loan support. Once again, we express our gratitude to our partners for their assistance in this challenging time.

The NEURC approved tariffs for NPC Ukrenergo for 2025. The tariff for electricity transmission services was approved at UAH 686.23/MWh (+0.16 UAH/kWh compared to the current year's tariff), and for dispatch control services - at UAH 98.97/MWh (-0.005 UAH/kWh compared to the current year's tariff).  The largest share of NPC Ukrenergo's expenses included in the tariffs is the cost of PSO, purchase of reserves (ancillary services), servicing and repayment of IFO loans, settlements in the electricity market (costs related to the purchase of electricity to compensate for technological costs, costs of system constraints, etc.), which the power system operator must pay by law. Expenses related to the operating activities of NPC Ukrenergo account for up to 11% of both tariffs. This means that ensuring the company's vital activity, carrying out repairs and restoration works, construction and modernisation of our facilities make up the smallest share in the tariff structure. ❗ The change in tariffs of NPC Ukrenergo does not affect the cost of electricity for households, so the tariffs for household consumers will not change. Read more about the new tariffs of NPC Ukrenergo by following the link in the first comment.

The newly appointed Supervisory Board of NPC Ukrenergo held its first meeting on 12 December 2024.   Independent representative Jeppe Kofod became Chairman of the Supervisory Board, while Anatolii Hulei, a representative of the state, became his Deputy. The Supervisory Board established the committees on audit, appointment and remuneration, investment and strategy, and determined their heads.   In general, the Supervisory Board of NPC Ukrenergo consists of 7 people: four independent members elected based on the results of the competition and three representatives of the state.

Further cooperation, urgent needs for equipment to restore the Ukrainian power system and financing the construction of protection at key substations of the transmission system. These topics were discussed today by Oleksii Brekht, Acting CEO of NPC Ukrenergo, and representatives of the German government delegation headed by Svenja Schulze, Minister of Economic Cooperation and Development. The German partners visited one of NPC Ukrenergo’s facilities to see the consequences of russian attacks and the process of elimination of the damage.   ‘When we talk about assistance from partners, we should understand that it covers a very wide range of issues. During the full-scale war, NPC Ukrenergo has repeatedly received critical equipment from German partners. But financial support was equally important. In particular, it was used to equip our facilities with security systems and purchase high-voltage equipment. We highly appreciate the level of support provided by the German government,’ said Oleksii Brekht, Acting CEO of NPC Ukrenergo.   During the visit, the German government delegation also handed over 15 aerial platform trucks to NPC Ukrenergo for the work on high-voltage lines. This assistance was financed by the Federal Government, while the German Society for International Cooperation (GIZ) procured and delivered the equipment.   ‘The third winter of war is posing a huge challenge for Ukraine: in recent months Russia has carried out targeted attacks on energy and heating infrastructure. These attacks are part of Russia’s perfidious plan to weaken people’s resolve and leave them to freeze in the dark. My Ministry is supporting Ukraine’s efforts to provide power and heat, and will continue to provide this support. Ukraine can rely on Germany’s support,’ said Minister for Economic Cooperation and Development Svenja Schulze.    Since the beginning of the full-scale war, thanks to the cooperation with the German government, NPC Ukrenergo has attracted 209 million euros for the restoration and development of the electricity transmission system networks. In particular, grants and loans provided through the KfW were used to promptly purchase equipment and materials necessary to restore damaged transmission facilities, reconstruct substations and provide protection for scarce equipment.   Also, thanks to the German Society for International Cooperation (GIZ), NPC Ukrenergo received donor assistance amounting to more than 10 million euros. In addition to the aerial platform trucks handed over today, it includes 800 tonnes of transformer oil and various high-voltage equipment. 

The Cabinet of Ministers of Ukraine has approved the new Supervisory Board of NPC Ukrenergo, appointed by the Ministry of Energy.   In total, the Supervisory Board of NPC Ukrenergo consists of 7 persons: four independent members, Patrick Graichen, Luigi De Francisci, Jeppe Kofod, Jan Montell, elected based on the results of the competition, and three representatives of the state, Yuriy Boiko, Anatolii Hulei and Oleksii Nikitin. It can be stated that the new composition of the Supervisory Board has been fully formed.   Adherence to the principles of corporate governance independence by the Company has been and is the practice of daily work at NPC Ukrenergo and constitutes the basis of the trust of international partners, investors, and creditors.   For more details, please follow the link below. 

The Cabinet of Ministers of Ukraine has approved the candidacies of four new independent members of the Supervisory Board of NPC Ukrenergo. They are Patrick Roland Graichen, Luigi de Francisci, Jeppe Sebastian Kofod, and Jan Henrik Montell. All the candidates have extensive experience and considerable international authority. The search for independent members of the Supervisory Board was conducted by Korn Ferry, the world’s #1 executive search and corporate governance development firm in accordance with the best international standards of transparency and impartiality of selection, which allowed attracting strong professionals to participate in the process. Briefly about the candidates approved by the Cabinet of Ministers: Patrick Roland Graichen is a well-known European expert on climate and energy issues. He previously served as State Secretary at the Federal Ministry for Environment and Climate Protection, where he played a key role in shaping national energy strategies. Prior to that, he headed Agora Energy Transition, a leading European think tank, for ten years, where he made significant efforts to promote energy transformation and sustainable development strategies in the EU. Luigi de Francisci was responsible for regulatory affairs at TERNA, the largest Italian system operator in Europe. He also served as a member of the ENTSO-E Board for more than six years. Luigi served as an independent member of the Supervisory Board of Ukrenergo from 2019 to 2021, where he was responsible for strategic transformations that led to the successful connection to the European power grid and accession to ENTSO-E. Jeppe Sebastian Kofod is a well-known European politician and expert in energy and security issues. He has extensive experience in public administration, having served as Minister of Foreign Affairs of Denmark from 2018 to 2022, as well as parliamentary experience as a member of the European Parliament and the Danish Parliament. Overall, he has more than 25 years of experience in the EU diplomatic sphere, a deep understanding of the energy market and regulation, and a strong network of connections in international and European politics. Jan Henrik Montell successfully combined corporate governance experience and background as CFO of a Finnish electricity transmission system operator. At Fingrid, he has been responsible for strategic finance, digital transformation, investments, corporate finance, and risk management for more than eight years. Prior to that, Jan worked as a partner at KPMG and has valuable experience as a board member of Nord Pool, the Scandinavian energy exchange. For more details, please follow the link below.

NPC Ukrenergo not only restores damaged infrastructure that is under constant attacks by the russian army, but also opens up opportunities for partnership between Ukrainian and international technology businesses. Thanks to transparent procurement and cooperation with partners, the company actively uses modern technologies, ensuring the stability and further development of the power system of Ukraine.   Work on the restoration and development of the transmission system network is combined with the maximum promotion of the integration of new generating capacities.   “This creates unique opportunities for international partners because our need for equipment and technological solutions is very high. We carry out a lot of restoration work on our own but there is a need for new technologies and solutions. The company is ready to attract advanced solutions through transparent and efficient procurement,” said Oleh Pavlenko, Investment Director of NPC Ukrenergo, during a conference at the ReBuild Ukraine Construction and Energy exhibition, which brought representatives of 500 companies from 30 countries altogether in Warsaw.   During the conference, representatives of NPC Ukrenergo emphasised their readiness to share their own experience in restoring and protecting infrastructure. They also talked about incentives for building decentralised generation that is resistant to attacks.   The power system modernisation plan opens up huge opportunities for equipment manufacturers, developers and investors, as it is supported by both a request from the Ukrainian state and opportunities that NPC Ukrenergo’s partners, international financial institutions, are ready to provide.

NPC Ukrenergo will temporarily suspend payments under the Company’s Guaranteed Sustainability-Linked Green Notes starting from 9 November. This technical decision will be applicable until the restructuring process is finalised, which is planned in the nearest months. NPC Ukrenergo, together with the Government of Ukraine, is taking all necessary measures to reach an agreement with bondholders in the near future. The provisions of a separate law, as well as two resolutions of the Cabinet of Ministers and an order of the authorised management body of NPC Ukrenergo from the state, the Ministry of Energy, constitute the basis for suspending the payments. These regulations were adopted within the framework of Ukraine’s fulfilment of the terms of cooperation with the International Monetary Fund.   NPC Ukrenergo has notified its partners and creditors of the temporary suspension of payments under the Green and Sustainability-linked bonds and provided its reassurances of the Company’s operational and financial stability. NPC Ukrenergo continues to fulfil its obligations and operational functions stipulated by the national legislation and the Company’s charter. With regard to the current tasks, these relate to the preparation for winter, restoration, protection and strengthening of the resilience of the integrated power system of Ukraine in wartime.   For more information on the decision to temporarily suspend payments under the Green and Sustainability-linked bonds, please follow the link in the first comment.

NPC Ukrenergo received a EUR 10 million grant from the European Bank for Reconstruction and Development (EBRD).   The funds will serve to cover the Company’s critical operating expenses and maintain its liquidity. The relevant agreement was signed yesterday by Oleksii Brekht, Acting Chairman of the Company’s Management Board, and Grzegorz Zieliński, Director of Energy Europe at EBRD.   EBRD is a reliable partner of NPC Ukrenergo, which provides the Company with significant support during the war. Previous grants and loans from the Bank were directed to the needs of restoring the transmission system’s network and purchasing expensive equipment, in particular, autotransformers, as well as maintaining the Company’s liquidity in challenging conditions. In addition, EBRD finances the installation of passive protection at NPC Ukrenergo’s key substations. We are grateful to the European Bank for Reconstruction and Development for its continued support and significant contribution to ensuring Ukraine’s energy security.

European transmission system operators increase the capacity for electricity import to Ukraine and Moldova for this winter. The maximum capacity of electricity import to Ukraine from the power systems of neighbouring European system operators will increase from 1,700 to 2,100 MW starting 1 December.   Calculations regarding the feasibility of increasing the technical capabilities of Ukraine’s electricity import have been performed since June of this year – after russia inflicted several devastating attacks on the Ukrainian power system and the possible shortage of power in it during the heating season became significant.   The import capacity limit of 2,100 MW will be applicable from 1 December 2024. Starting from March 2025, the transmission system operators will be able to reassess the commercial capacity limit between the EU and Ukraine and Moldova on a monthly basis.   We are thankful to our European partners for their immense and timely support. We also express gratitude to President Volodymyr Zelenskyi for his personal involvement in the highest level negotiations on the increase of technical capacity for electricity import.   For more information, follow the links in the comments below.