Schneider Electric partners with DTEK on Ukrainian grid modernisation

DTEK Group and Schneider Electric have announced a memorandum of understanding (MoU) to bring innovative energy solutions to Ukraine with a focus on smart infrastructure, grid modernisation, digitisation and industry solutions.

The partnership between DTEK, the largest private investor in Ukraine’s energy sector, and tech developer Schneider Electric, involves a framework for cooperation to implement projects that will enhance energy efficiency, ensure supply reliability and promote sustainable energy across Ukraine.

In the light of the current critical situation facing Ukraine’s energy system, the parties will focus on cooperation in the following areas:

• Collaborative initiatives and information sharing that identify, apply and promote effective measures and solutions to implement pilot projects in the energy sector.

• Developing and implementing battery storage assets, in and outside Ukraine, to create a more dispersed and resilient energy grid.

• Modernising Ukraine’s electricity grid to enhance reliability of supply, minimise energy losses and create a more flexible, future-proof network.

• Developing and implementing pilot/demo projects that test innovative solutions with the aim of creating a more energy efficient energy sector.

• Identifying potential project financing solutions alongside European export credit agencies (ECAs) and other international financial institutions.

• Meeting DTEK’s immediate needs to fast-track restoration and maximise DTEK’s energy generation capabilities.

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Schneider Electric & DTEK: a two year partnership

Commenting in a release was Maxim Timchenko, CEO of DTEK: “Schneider Electric has been our trustworthy partner over two difficult years for Ukraine and the Ukrainian energy industry.

“Today, this partnership is a significant step forward in our mission to transform the energy landscape of Ukraine. By combining our resources and expertise, we are poised to implement cutting-edge solutions that will not only meet the immediate needs of our energy sector but also ensure its resilience and sustainability in the future.”

According to DTEK, Schneider Electric was one of the first companies to answer DTEK’s call for help after the start of Russia’s February 2022 full-scale invasion.

Schneider Electric provided electrical equipment to the areas that needed rapid restoration, donating 43,000 pieces of emergency equipment worth €4 million (₴150 million; $4.3 million).

Donations included a range of medium and low voltage equipment such as frequency converters, circuit breakers, and digital solutions to facilitate the repair, maintenance and remote monitoring of critical energy infrastructure across the grid.

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Said Mykhaylo Bubnov, CEO of Schneider Electric Ukraine: “Schneider Electric understands the specific needs of the Ukrainian energy sector and has profound expertise in technologies and practices that can enhance energy efficiency and sustainability.

“We have a long-term business relationship with DTEK. Our cooperation especially intensified after the outbreak of a full-scale war in Ukraine, when we transferred electrical equipment for the rapid restoration of damaged critical infrastructure facilities.

“Now, like two years ago, we understand the importance of supporting the Ukrainian energy system, coordinated cooperation and quick coordinated actions. We look forward to sharing our extensive knowledge and solutions with DTEK.”

Recovery conference

The partnership between DTEK and Schneider Electric comes ahead of the third Ukrainian Recovery Conference, hosted in Berlin on June 11 and 12, 2024.

By bringing together over 2,000 participants from politics, business, civil society and municipalities, the aim of the conference is to facilitate long-term agreements and international initiatives in areas such as business development and training skilled workers.

Over 600 representatives from Ukrainian, German and international companies in sectors such as energy, healthcare, logistics and arms, alongside representatives from municipalities and civil society, will present their work during the event as part of the Recovery Forum.

Commenting on the conference in a release was German development minister Svenja Schulze: “Even during the current times of war, Ukraine needs to continually rebuild houses, water pipelines, hospitals and power grids.

“Giving up is not an option. People want to keep on living in their country, and to do so they need electricity, water and a roof over their heads. The Recovery Conference in Berlin sends a strong message of solidarity. Partners from around the world are joining forces to support the recovery of Ukraine.

“This task is too big to be tackled by governments alone – which is why we are expressly inviting companies, civil society and municipalities to the conference. The conference aims to combine this broad spectrum of activities and channel them in a targeted way towards meeting Ukraine’s short- and long-term recovery needs.”

Although the Recovery conference has been and will be critical for garnering support for the war-torn country, efforts in the country’s restoration have not been all smooth sailing.

On the eve of the conference, Mustam Nayyem, the head of Ukraine’s reconstruction agency, resigned.

Announcing his resignation in a Facebook post, Nayyem cited systemic obstacles preventing him from performing his powers effectively.

One complaint in a list includes a lack of approval for EIB funding: “Right now, for the third month, the Government has not approved the payment of almost €150 million ($161 million) euros, which was lent by the state to the EIB for critically important projects, including water supply and energy protection.”