A project to improve the reliability of power transmission system and support implementation of the wholesale electricity market in Ukraine. 


In 2014, Ukraine’s transmission system comprised 136 substations (SS). The total installed capacity of transformers was about 78,900 megavolt-amperes (MVA) over 22,892 km (by circuits) of backbone and overhead lines (OHLs). Many SSs and OHLs have exhausted their useful life and require urgent replacement. According to UE data, 16,700 km of transmission lines have operated for over 30 years (72.8 percent of all), of which 10,890 km have operated for more than 40 years (47.5 percent of all). Aging and inadequate reconstruction rates of transmission lines have led to unreliable operations. In 2012, 229 out of 343 auto-transformers (67 percent) were over 25 years old.

The network can’t support the present load due to high technical losses and poor reliability, instability, and low quality of power supply, which is costly, inconvenient, and potentially dangerous to customers. These problems also threaten sustainable economic growth and renewable energy integration in Ukraine. Despite positive reforms in the last decade, the power sector is still plagued by high financial insolvency and operating inefficiencies.

Objectives and Outputs:

The Project will provide a strategic framework for the development of Ukraine’s power sector. Ukraine, with the support of the World Bank, has been implementing Energy Sector Reforms since 2004, providing investments for energy infrastructure, improving the safety and reliability of power supply, contributing to the uninterrupted operation of the Ukrainian energy market, and supporting Ukraine in its legislative, institutional, and technical harmonization of the energy sector with the EU Internal Energy Market. To support these reforms, the Project will focus on strategic directions for Ukraine’s power system, including scale-up of renewable power integration and low carbon development, plans and requirements for network integration/synchronization with ENTSO-E and development of a competitive electricity market.

These plans will underpin the selection and rationale for specific investment projects financed by this Project. The Project will help Ukraine overcome the challenges of strategic planning, implementation, and finance of transmission system rehabilitation. Ukraine’s power system has eight regional systems. The most malfunctioned ones (as indicated by number of faults, energy not served, and technical losses) are the Central Power System, including four regions and Ukraine’s capital (a total of 8.4 million people), and the Northern Power System, including three regions (a total of 5.8 million people).

The Project also supports the World Bank’s twin goals. Improved power sector competitiveness will result in greater sector ability to attract investment and generate revenues. Secure energy supply will stimulate local economic development while improved quality of energy supply at a reasonable cost will ultimately benefit the end users, including households and small businesses. The core objective of the current Country Partnership Strategy is to help the government overcome implementation bottlenecks affecting successive reform programs. Bank-supported activities are organized along two main pillars: support for “building relations with citizens” and “building relations with businesses.”

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

IBRD Project Portal

Project Details
Cover Note | Project Document | Proposed Decision
Approved on November 4, 2014 (Approved Decision)
Approved amount(s):
USD 48.425 million

Project Preparation Grant 
Project Preparation Grant | Proposed Decision
Approved on October 25, 2012 (Approved Decision)
Approved amount(s):
USD 500,000 (PPG)

Comments and Responses:
Germany (October 25, 2012)