Securing the electricity supply: KfW supports Ukraine in repairing wartime damage and more efficient electricity infrastructure

• EUR 76 million for the repair and rehabilitation of electricity grid infrastructure

• Sustainable reconstruction of transformer stations, supply of replacement materials, measures to protect transformer stations

• Integration into the European electricity grid

• Reduction of CO2 emissions through reduced energy losses

Today, on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), KfW signed a contract with the Ukrainian transmission system operator UKRENERGO for a grant of EUR 76 million to remedy wartime damage in the Ukrainian electricity grid and substations, as well as measures to achieve higher energy efficiency of the entire grid. The intent behind this is to support the Ukrainian population’s energy supply security. As part of the reconstruction of the grid infrastructure, components such as reinforced concrete are to be integrated to physically protect the facilities against further attacks, and modern energy-efficient technologies are to be used. The repair and reconstruction measures will use automated digital control technology, which will support the further integration of the Ukrainian grid into the European grid and the integration of further renewable energies into the Ukrainian electricity grid. This is because only a flexible modern grid and exchange options with the European electricity network can compensate for the production fluctuations, in particular from additional solar and wind power in the grid.

“Reconstruction, rehabilitation and expansion of the electricity grid infrastructure are of the utmost importance for the reconstruction and further economic development of the country. Greater energy efficiency and integration into Europe’s electricity grid will improve the general conditions for economic activities and the daily lives of the Ukrainian population nationwide by securing the electricity supply,”

said Christiane Laibach, Member of the Executive Board of KfW Group.

Ukraine’s electricity grid infrastructure has been severely damaged by targeted Russian attacks since the start of the war. Generation capacity fell from 37.6 gigawatts to 18.3 gigawatts by 30 April 2023. Out of 94 high-voltage transformers, 41 have been damaged or completely destroyed by attacks. This leads to massive limitations, instability and power outages in the grid.

Further information about KfW Development Bank is available at: ­ www.kfw-entwicklungsbank.de