Economic and Technical Analysis of Ukraine Back-to-Back Interconnection with Europe

The main objective of the assignment is to conduct technical and economic analysis of the proposed BtB interconnection (600MW) between the IPS of Ukraine and the European power system (ENTSO-E). After the planned synchronization of the IPS of Ukraine with the ENTSO-E, the reallocation of the BtB converter station to the border with Belarus was analyzed. The target years included 2022, 2025 and 2030.

Within the technical and economic project evaluation, transmission network analysis, electricity market analysis, as well as economic analysis were performed. For the needs of electricity market analysis, electricity market model that includes Ukraine, Moldova, Belarus, Central East Europe and South East Europe was developed, in order to assess the market indicators and potential benefits for Ukraine from project commissioning. The technical assessment was based on selection of technology and optimal location for the proposed BtB, estimation of costs, as well as the project impact on power system operation in terms of: load flow, short circuits, NTCs, variation of losses. For both electricity market analysis and transmission network analysis, professional and commercial software tool packages were used – Antares and PSS/E. 

On the basis of quantified benefits and costs, final economic assessment was conducted using the NPV and EIRR analysis.

Type of services provided:

• Electricity market modeling of Ukraine, Moldova, Belarus, Central East Europe, South East Europe
• Electricity market and economy assessment of benefits of Ukraine BtB Interconnection with Europe
• Transmission network analysis and technical assessment (technology, cost and optimal location) of the proposed BtB station
• Economic feasibility assessment of the proposed HVDC project