Industry: Energy and Chemical Industry: Ukraine Transaction Price: $ 6.53 billion Transaction Mode: Equity Financing
Project introduction
Project Name: Kakhovka HPP-2 Project Construction.
Coordinator: Ukrainian Ministry of Energy.
Project site: Kherson region, Nova Kakhovka.
Technical indicators:
● Capacity: 250 MW.
● Hydropower unit: 4x62.5MW
● Annual power generation: 1,423 million kilowatts per hour (including HPP-1).
● Construction period: 6 years.
Estimated total investment: $6.53 billion.
Financial details:
● Development Plan (DPP):20 years.
● net present value (NPV): USD 58.4 million.
● Internal rate of return (IRR): 7.3.
●PI:1.12
● Weighted average cost of capital (WACC): 5.41%.
Project phase/project status:
The first stage "TEO" in the three-stage design has been completed. TEO (feasibility study) was approved by CMU decree No.156-p on March 10, 2017.
In the development of the second stage of the three-stage design, the development of the three-stage design P (basic design) is underway.
Socio-economic effects/project advantages:
● Improve the energy independence of the country and the safety, stability and flexibility of the Ukrainian power system.
● The average long-term power generation is increased due to the use of spill discharge.
● It will help the Ukrainian power system meet the frequency and active power control requirements integrated with the European Transmission System Operator Network (ENTSO-E), especially in the secondary and tertiary regulation range.
● Extend the service life of Kahofka hydraulic system.
● Develop infrastructure in Hellson and create new employment opportunities.
Cooperation intention
The project is now seeking investment.