Second Power Transmission Project

The objective of the Second Power Transmission Project in Ukraine is to improve the reliability of the power transmission system and support the implementation of the Wholesale Electricity Market in Ukraine. The project consists of the following three components and subcomponents: (1) Rehabilitation of Transmission Substations. Replacement of outdated high voltage equipment, installation of gas-insulated switchgears, and replacement of auxiliary power equipment, protective layering and substation control and automation systems in selected high voltage transmission substations. (2) Electricity Market Enhancement. This component consists of four subcomponents: Subcomponent 2.1: Installation and connection of reactive power compensation devices for selected high voltage transmission substations. Subcomponent 2.2: Introduction of Smart Grid through purchase and installation of Smart Grid solutions including: (a) modernization of the telecommunications network between renewable energy sources, key substations of transmission networks and system operator control centers; and (b) modernization of the regional and national system of load distribution and organization of control centers. Subcomponent 2.3: Provision of support to the Balancing Market through purchase and installation of hardware and software for the proper functioning of the Balancing Market of electricity, ancillary services market and fulfillment of administrative settlement services, administration of commercial settlement, as well as other services of the System Operator based on the Electricity Market Law of Ukraine. Subcomponent 2.4: Support for institutional development of the Project Implementing Entity (UE) by: (a) establishing a corporate-wide management information system (MIS) in the Project Implementing Entity; (b) providing technical assistance to the Project Implementing Entity on procurement, financial management and project management; and (c) financing of 9 audits and training.