Ukraine and Germany have signed a package of agreements in the energy sector totaling over €155 million. The agreements provide for the restoration and modernization of the power grid, the acceleration of deliveries of critical equipment, the development of distributed generation, and the upgrading of underground gas storage facilities, according to Dengi.ua , citing the press service of the Ukrainian Ministry of Energy.
The agreements were signed on the sidelines of the Ukrainian-German Business Forum in the presence of Ukrainian President Volodymyr Zelenskyy and German Federal Chancellor Friedrich Merz.
“We thank German businesses for their proactive stance and willingness to deepen our partnership in order to modernize Ukraine’s energy sector and strengthen our shared energy security,” said First Deputy Prime Minister of Ukraine and Minister of Energy Denys Shmyhal.
Siemens Energy to Help Restore the Power Grid
The Ministry of Energy of Ukraine and Siemens Energy have agreed to cooperate on the restoration and modernization of the Ukrainian power grid.
Special attention will be paid to enhancing its resilience. In particular, the parties are considering the possibility of using 12 Siemens Energy gas turbine units for distributed generation.
Such solutions are expected to help increase the reliability of the power supply and strengthen the system’s capacity to supply electricity to consumers.
Ukraine to Accelerate the Procurement of Critical Equipment
NEC “Ukrenergo” has reached agreements with two German transmission system operators— 50Hertz and Amprion.
The parties will work together to expedite Ukraine’s receipt of critical electrical equipment.
To this end, the companies intend to:
- identify available production capacities;
- coordinate efforts with international manufacturers;
- identify the nearest available production slots;
- expedite the delivery of transformers, cables, and switching equipment.
This equipment is necessary for the restoration and further modernization of Ukraine’s power grid.
Naftogaz and Siemens Energy to Modernize Gas Infrastructure
Naftogaz and Siemens Energy have signed a separate agreement. The collaboration will focus on three key areas:
- First: enhancing energy security and protecting critical infrastructure.
- Second: modernizing underground gas storage facilities.
- Third: technical cooperation in power generation.
The companies are also considering a project to supply five gas turbine compressor units.
In addition, the parties are exploring the possibility of creating additional power generation capacity based on Siemens Energy technologies and automated control systems.
What the New Energy Package Entails
Overall, the agreements between Ukraine and Germany cover several key areas — from the restoration of the power grid and equipment supplies to the development of power generation and the modernization of gas infrastructure.
The total value of the portfolio of agreements exceeds €155 million. Cooperation with German companies is expected to accelerate the restoration of energy facilities while simultaneously creating conditions for the further modernization of Ukraine’s energy sector.