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Cabinet of Ministers approves of modernizing Dniproenergo power unit

Cabinet of Ministers approves of modernizing Dniproenergo power unit

17 September 2010

The Cabinet of Ministers of Ukraine approved technical documentation for the modernization of power unit #1 at Zaporizhya TPP, part of Dniproenergo (UX: DNEN UK), Interfax reported yesterday. Total CapEx will amount to UAH 427 mln (USD 53.7 mln). Expected efficiency improvements were not disclosed. Yegor Samusenko: All modernization projects approved by government are usually approved by National Electricity Regulatory Commission afterward, which means up to 80% of the CapEx will be additionally included in Dniproenergo’s tariffs. Though details on expected efficiency improvements were not provided, the payback period is usually 2-3 years, given that we expect 4/5 of the CapEx to be provided through an investment surcharge included in its tariffs.

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