The German government, through the state development bank KfW, will allocate a €76 million ($80 million) grant to Ukraine’s national power grid operator Ukrenergo to finance the protection of substations, new high-voltage equipment, and network upgrades along the border with Europe.
The grant agreement was signed on 13 October, Ukrenergo announced.
According to Ukrenergo CEO Volodymyr Kudrytskyi, the funds will strengthen defenses at energy infrastructure sites, finance restoration and modernization projects, and support new transmission line construction.
“These measures will help improve the reliability of power supply to consumers. The provided financing will also assist Ukrenergo in further developing interconnections between Ukraine’s and Moldova’s power systems with continental Europe’s,” Kudrytskyi said.
Ambassador Martin Jaeger said the funding will support Ukraine’s ability to successfully pass this winter season by facilitating swift rebuilding and protective structures at substations.
Jaeger added that Germany’s recently announced second winter aid package, including Patriot air defense systems, IRIS-T, and Gepard, will help protect critically important infrastructure.
In total, Ukrenergo has attracted over €220 million in KfW loans and grants for substation restoration and reconstruction. German transmission system operators have also provided over 100 pieces of equipment needed to repair Ukrenergo’s transmission lines and substations.
The damage inflicted by Russia’s aggression aimed at freezing Ukrainians last winter was enormous. A UN Development Program report found Ukraine’s energy generation capacity in April 2023 was down 51% versus pre-invasion February 2022.
During the full-scale invasion of Ukraine, Russian forces launched over 1,200 missiles and kamikaze drones to degrade Ukraine’s critical civilian infrastructure, particularly the energy system, Ukraine’s state-owned electricity transmission system operator Ukrenergo reported on 8 April 2023.
Around 250 Russian missiles and drones hit their targets, and 43% of the main power grids were damaged, according to Ukrenergo. All thermal and hydroelectric power plants in Ukraine were shelled and damaged.
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