Zakarpatia Fuel & Energy Company Created

The Antimonopoly Committee permitted state-controlled Zakarpatoblenergo (ZOEN: SELL) and the Cyprian company Darisima Investments to create Zakarpatia Fuel & Energy Company (ZTEK). According to Zakarpatoblenergo, the new company was established to attract investments for the modernization of Tereble-Rikska hydropower station. Alexander Paraschiy: Tereble-Rikska HPP with a capacity of 27 MW together with Kalush CHPP, 100 MW, and Zakhidenergo’s Burshtyn TPP, 2300 MW are three generation objects of Burstyn Energy Island, which is connected to European UCTE network. Because reconstruction of the HPP will increase its electricity export potential, the return on the reconstruction project looks like it will be high. Though, as no plan of reconstruction is disclosed, and ownership structure of ZTEK is not clear, it is hard to say whether Zakarpatoblenergo will benefit from the creation of the joint venture.