Some facts about Ukraine’s existing electricity infrastructure:
- Thermal production of electricity accounts for 47% of Ukraine’s electricity production and is based on facilities that are estimated to be 95% past rated 100,000 hours of operation; 80% have been operating for over 200,000 hours; and 50% have been operating for over 30 years.
- Losses due to inefficient power network design are estimated to be about 2.5 times the average of western countries, or about 15% of total electricity production. This is an average number and some areas of power delivery experience much higher losses.
- Of Ukraine’s almost 1Million km of electricity distribution lines, 50% require replacement or modernization. The estimated cost of this renovation is $16.5Billion.
- Ukraine consumes about 2.5 times the energy required per unit of GDP.
- Ukraine’s cross-subsidy tariff structure artificially lowers the residential end-user rate and thus lowers incentives for energy conservation while almost eliminating the business case for investment into aging infrastructure.
