The World Bank and Ukraine utility OJSC UkrHydroEnergo have signed an agreement for the purchase and sale of 1 million carbon dioxide emission reduction units resulting from the Ukraine’s World Bank-funded Hydropower Rehabilitation Project.
Officials of the World Bank, as trustee to the Netherlands European Carbon Facility, signed the purchase agreement with UkrHydroEnergo officials September 15. It is the first such agreement signed by the World Bank in Ukraine under the Kyoto Protocol of the United Nations Framework Convention on Climate Change.
The emission reduction units, each representing a ton of carbon dioxide, are to be generated by Ukraine’s Hydropower Rehabilitation Project, a program to rehabilitate 46 generating units at nine Ukraine hydroelectric projects.
The World Bank has lent US$106 million for the hydro program, which already has solicited proposals to supply excitation equipment (HNN 8/16/06) and governors (HNN 6/2/06) for the hydro plants, as well as consultants to help implement a Ukrainian wholesale electricity market. (HNN 7/20/06)
In addition to hydro plant refurbishment, the program includes dam safety, UkrHydroEnergo institutional development, energy sector reform, and wholesale power market implementation.
By 2012, the project is expected to increase hydropower generation by 470 gigawatt-hours per year, providing additional peaking power and regulating capacity to the Ukrainian system. The emission reductions are created by displacing fossil-fueled generation with zero-emission hydropower.
“The revenue from the sale of the emission reduction units to the World Bank Netherlands European Carbon Facility provides important added cash flow the project,” UkrHydroEnergo Chairman Semen Potashnik said.
For information on the Hydropower Rehabilitation Project, contact OJSC UkrHydroEnergo, Director Vadym Rassovsky, Reconstruction and Generation Department, Room 221, Second Floor, OSJC UkrHydroEnergo office, 07300 Vyshgorod, Kyiv Region, Ukraine; (380) 44-9622294; Fax: (380) 44-9622007; E-mail: email@example.com.