A Ukraine firm is set to build a 197MW lithium-ion energy storage system after securing a nine-figure loan from the World Bank.
Ukraine private joint stock company Ukrhydroenergo (UHE) has borrowed a total of $212 million for the project to help link Ukraine’s power grid with the European power grid.
Power grid synchronisation is a Ukrainian strategic objective to create a competitive power market aligned with EU regulations and market practices.
The project aims to enhance reliability and security of power supply through diversification of energy sources, and access to the EU’s market.
The project will combine the energy storage systems with solar power plants within four hydropower plant sites (Kyiv, Kaniv, Kremenchuk and Seredniodniprovska) to allow for ancillary services to the national power grid.
A long-duration battery with a solar power plant will also be installed within Dniester Hydro Power Plant.
The loan includes: a $177 million International Bank of Reconstruction and Development (IBRD) loan; a $34 million Clean Technology Fund (CTF) concessional loan; and a $1 million CTF grant for a new project in Ukraine – Improving Power System Resilience for European Power Grid Integration (Installation of Hybrid Systems for Electricity Production in Ukrhydroenergo).
Rup Banerji, World Bank regional country director for eastern Europe, said: “This 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.”
The World Bank has already been working to prepare Ukraine’s power infrastructure for synchronisation with the EU power grid under the ongoing Second Power Transmission Project (PTP2).