29.12.2008 
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24.12.2008
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DEVELOPMENT STRATEGY  The mission of NJSC “Energy Company of Ukraine” consists in performance of the tasks of Ukrainian government in electric-power industry concerning provision with the efficient and balanced heat and power supply of consumers, renovation and expanding of generating capacities with the simultaneous reduction of technological environmental impact, increase of export potential and integration of the integrated Power System of Ukraine to the European power system - Union for the Co-ordination of Transmission of Electricity (UCTE), realization of the further reforms in the National electric power sector.
According to the accepted Government Action Program “Ukrainian Breakthrough - for People, not for Politicians” the priority tasks have been worked out and are being fulfilled by NJSC “Energy Company of Ukraine” in the following directions:
I. Attraction of the non-state investments in the thermal power system development
II. Integration of the integrated Power System of Ukraine to the transeuropean power networks and energy market.
III. Advancing of the state regulatory functions in the energy market
IV. Reduction of the critical dependence on the monopoly energy coal supplies via diversification of supplies and switch to the system of long-term contracts.
V. Ensuring reconstruction of the existing energy capacities and building of the new energy capacities on the hydroelectric power plants and pumped-storage plants.
The investment policy of the company is based on the Energy Strategy of Ukraine till 2030 and is being implemented according to the following priority directions:
1. Integration of the integrated Power System of Ukraine to the European power system.
Integration of the integrated Power System of Ukraine to the European power system is impossible without application of technical standards combined with the standards of the UCTE (Union for the Co-ordination of Transmission of Electricity).
It is necessary to modernize turbine regulation systems of thermal power plants, to install automatic regulators of capacity and frequency, to replace the electrotechnical equipment of switchgears by the new equipment, to replace protective relay, measuring and telecommunication systems of monitoring and control of hydroelectric power plants etc. in order to ensure the compliance of power generating companies with the requirements of UCTE.
2. Reconstruction of the existing capacities.
The operating time of 80% of thermal power generation equipment is 1.7-2.5 times higher of its design life. In view of the physical and functional depreciation of power equipment power units don’t meet the requirements of work reliability and efficiency of fuel utilization and are partially subject to substantial reconstruction, the rest of power units are required to be taken out of service. Thermal generation renovation must be started immediately and 25 power units of thermal power plants with the installed capacity of 7700 MW must be renovated till the year 2018.
3. Environment protection
The aspiration of Ukraine to become a member of the EU imposes great obligations on the power system of the country. Thus, in regard to the impact on the ambient air, it is necessary to ensure the fulfillment of the requirements of the Directive 2001/80/EU concerning the ultimate level of pollutant emissions of thermal power plants. For that purpose it is necessary to improve the existing ashes cleaning systems on thermal power plants, to equip the power plants with modern systems of cleaning the gas from sulfur and nitrogen oxides.
4. Construction of new capacities
It is planned to replace the power units by the modern power units with the total installed capacity of 3650 MW in the nearest decade with the aim of meeting the growing power demand.
In accordance with the National Energy Strategy till 2030 the investment policy is formed according to the following trends:
- reconstruction and construction of the new thermal power plants;
- rehabilitation and increase of hydraulic power capacities, including pumped-storage plants and small-scale hydropower industry;
- development and technical re-equipment of transmission lines by the voltage of 0.4-150 kV.
As a whole during the years 2008-2018 it is planned to involve 17.5 bln USD (approximately 88.4 bln UAH) for the construction of new thermal power plants, reconstruction and modernization of the existing thermal power plants, meeting the EU requirements concerning impact on the ambient air and synchronization with UCTE:
- around 0.8 bln USD of the above mentioned sum – for the implementation of measures on 52 power units of thermal power plants for ensuring the compliance with UCTE standards;
- around 4.6 bln USD – for the reconstruction of 25 power units of thermal power plants;
- around 4.8 bln USD - for the ensuring the performance of European standards concerning impact on ambient air;
- around 7.3 bln USD - for the construction of new capacities.
Investments into the power system, in particular into the development of thermal generation are capital‑intensive and long-lasting. The lack of own funds of power generating companies, the impossibility to bring in necessary credit resources of banking institutions for a long-run period, underdevelopment of other financial instruments in Ukraine didn’t permit the realization of reconstruction and modernization in necessary scope and determined the functional and the physical depreciation of the equipment of thermal power plants.
One of the priority tasks of NJSC “Energy Company of Ukraine” is bringing in the thermal power industry the private investments of strategic investors, who have necessary professional experience of work in power industry and sufficient financial resources to carry out investment obligations.
In the hydropower industry in order to increase extremely insufficient for the country power system regulating and flexible capacities, creation of favourable conditions for the integration of the integrated Power System of Ukraine to the European power system and power export increase, it is necessary to provide the completion of realization of three big-scale projects:
- second line of reconstruction of hydroelectric power plants of Dnieper hydraulic power system and Dnistrovs’ka hydroelectric power plant‑1 with the aim to increase by 2011 the capacity to 235 MW and to prolong the exploiting resource of plants on 30-40 years, which has been financed with bringing in financial resources of the World Bank;
- completion of the construction of Dnistrovska pumped-storage plant by phase-in of 3 hydraulic units with a total capacity of 972 MW during 2008-2012;
- completion of the construction of Kanivska pumped-storage plant by phase-in of 4 hydraulic units with a total capacity of 1000 MW during 2012-2015.
Rehabilitation and expanding of hydropower capacities by 2018 requires more than 15 bln UAH of investments.
The projects of the investment programs of energy supplying companies for 2008-2010 are provided to draw about 3.5 bln UAH for the construction and reconstruction of transmission lines by the voltage of 0.4-150 kV. This will permit to construct and renovate about 11.8 thousand km of transmission lines by the voltage of 0.4-150kV and 5500 electric power substations by the voltage of 6-150 kV, provided by the Program of development of transmission lines by the voltage of 35-110 (150) kV, approved by the Government in September, 2007, and complies with approved by the Government in February, 2008, Action Plan for preparation and carrying out in Ukraine the final part of the14th European Championship for national football teams sanctioned by UEFA (UEFA Euro 2012).
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