Ukraine seeks investment in energy construction projects (5)

2021-10-29
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Industry: Energy and chemical industry region: Ukraine transaction price: $ 26.4 billion Transaction method: equity financing

Project introduction

Project name: Construction of Units 3 and 4 of Khmelnitsky NPP

Ownership: State-owned

Project address: RomenastyNFP, Netishyn (Khmelnitsky region)

Project objectives:

Ensuring Ukraine's energy independence and strengthening the country's role in the international electricity market. Increase the power capacity of Khmelnitski Nuclear Power Station by 2,094 MW.

Construction cycle: 84 months (7 years)

Form of investment: mixed financing

Total investment forecast: $26.4 billion

Financial details:

●DPP:33 years

● NPV: $3.43 billion

● IRR: 7.22%

●PI: 123

Technical demonstration:

● The completion of the construction of two generating units is of strategic significance to Ukraine as it will contribute to its energy security.

● Stability of energy systems, supply of electricity to consumers and creation of thousands of jobs, which will improve social and economic development in the region and other regions.

● It will bring Ukraine closer to the strategy of synchronizing its domestic energy system with that of the European Union, and integrate it into the European energy network by establishing a backup power supply at the Khmelnitski nuclear power plant site and connecting it with ENTSO-E.

Economic effects:

The commissioning of units 3 and 4 of the Khmelnitski Nuclear Power Plant will provide:

●15.4 billion kilowatt-hours of additional electricity supply per year for Ukraine's energy system.

● Stable supply of required electricity to consumers.

●Provide opportunities for balanced consumption of Ukraine's existing natural fuel resources. Reduce the negative impact on the environment by reducing greenhouse gas emissions.

● Keep electricity prices at a level acceptable to consumers.

Cooperation intention

The project is now seeking investment.