UPS of Ukraine Current Status and Development Plans for 2010 with Outlook for 2020

1. UPS of UkraineCurrent Statusand Development Plans for 2010with Outlook for 2020

2. Characteristics of UPS of Ukraine The Unified Power System (UPS) of Ukraine is one of the largest power pools of Europe. The total installed capacity of power plans per 12/31/09 is 52,958 МW includingTPPs - 27,257 МW and PPs – 13,835 МW, HPPs/PSHPPs – 5,413.5 МW. The length of the prime power transmission network of the UPS of Ukraine exceeds 22,000 km.

3. Installed capacity structure of UPS of Ukraine

4. Development of the Main Transmission Network of UPS of Ukraine The concept of development of the main transmission network remains actual for the Unified Power System of Ukraine for the prospect of 2020, according to which provision of power generation function and parallel operation with other countries power systems is provided by the 330-750 kV with steady increasing the role of the 750 kV network. In general the policy of development a system organizing 750 kV network is aimed at creation of a circular grid with 3 750 kV latitude mains what enables maximum utilization of existing power plant capacity of the West and East of Ukraine. To eliminate the existing and prevent new bottle necks by 2015 construction and commissioning of main transmission networks in the UPS of Ukraine are foreseeing which will enable of transmission of the power plan capacity, form the system creating network of the UPS of Ukraine for transmission of power from the power excessive Western regions of the country to the deficient Central and Eastern regions, increase reliability of power supply of the Autonomous Republic of Crimea, the City of Kyiv, the Central and Western Oblasts and Eastern Donbass, as well as reinforce interstate ties in order to increase export of electricity

5. To this aim it is necessary to commission 3,000 MV*А of transformer capacity and over 1,500 km of main transmission lines namely: - 750 kV OHLRovenska NPP- Kyevska; - 750 kVOHL Zaporozhskaya NPP – Kakhovskaya with SS 750 kVKakhovskaya with branching 330 kV OHL (designing of the OHL and SS in the drawing stage has began); - 330 kV OHL Dnestrovskaya PSHPP – Bar; - 330 kVOHL Lutsk Severnaya – Ternopol; - 330 kV OHL Ternopol – Kamenets - Podolsky; - 330 kV OHLAjalyk – Usatovo#2 (OHL construction commenced in 2009); - 330 kV OHLNovodesskaya – Artsiz with expansion 330 kV SSArtsiz; - Switching the 220 kV OHL Simferopol – Sevastopol to the nominal voltage of 330 kV - 330 kV SS Zapadnaya in Kyiv; - 500 – 220 kV OHL to connect the 500 kV SSNovodonbasskaya considering itsextension; - 330 kV OHL Zapadnoukrainskaya – Bogorodchany; - 330 kVZapadnooukrainskaya – Drogobychwith SS 330 kVDrogobych; - 220 kVMukachevo – Khustwith SS 220 kVKhust.

6. Integration into ENTSO-E To enable parallel operation of UPS of Ukraine with European power system and to improve standards of operation of the UPS and incrementally bring them to the level UCTE requirements it is necessary to do a large scope of technical and organizational measures, aimed at modernization and development of the whole power system, improvement of power plan technical condition, power transmission system and bringing environmental characteristics of their operations to the level of these requirements

7. Development of Wind Power Generation in UPS of Ukraine As per 01/01/2009 , the installed capacity of wind power plans of the UPS of Ukraine is 83.9 MW. NEK Ukrenergo produced technical requirements for connection of wind power plants with a capacity of 550 MW to the power transmission network: • Wind power plant Nova-Eko-1with the capacity of 100 MWis to be connected to the SS 220 kVNS-3 by construction of the 220 kV OHL NS-3 – Nova-Eko-1 with SS 220 kVNova-Eko-1; • Wind power plant Nova-Eko-1 with the capacity of 200 MW is to be connected to SS 330 kVOstrovskaya by construction of the 330 kVOHL Ostrovskaya – Nova-Eko-2 SS 330 kVNova-Eko-2; • Wind power plantZaoadno-KrymskayaVES Ltdwith the capacity250 MWis to be connected to 220 kVDonuzlavand SS 110 kVZiminoby construction of the twodouble loop OHL110 kV Zapadno-KrymskayaVES – Donuzlavand Zapadno-KrymskayaVES – Zimino with SS kVZapadno-KrymskayaVES".

8. Prospects of the WPP Development NEK Ukrenergo has approvedtechnical requirements for implementation of pre-project designing diagrams of wind power plant generation with a capacity of nearly 9,769MW: • Autonomous Republic of Crimea (3,749 MW) • Nikolaevskaya oblast (1,500 MW) • Khersonskaya oblast (300 MW) • Zaporozhskaya oblast (2,550 MW) • Luganskaya oblast (250 MW) • Odesskaya oblast (500 MW) • Kievskaya oblast (100 МW) • Donetskaya oblast (820 МW) Intensive development of wind power generation of the recent time is conditioned by the State policy of supporting development of alternative power sources (modifications to the Law of Ukraine On Electric PowerSector of 04/01/2009, Directive of the Cabinet of Ministers of Ukraine of 02/19/2009 On Implementation of Investment Projects of Wind Power Plant Construction in the Autonomous Republic of Crimea and Nikolaevskaya Oblast, etc)

9. Dynamics of the capacity consumption increase of the UPS of Ukraine

10. Commissioning New Generation Capacities Dobrotvorskaya TPP Khmelnitskaya NPP Kievskaya CHPP 6 The UPS of Ukraine development plan foresees the follwing: • Commissioning 2 new units of the capacity 1,000 MW each at theKhmelnitskaya NPP; • Commissioning 3 new units of the capacity 225 МWeach at theDobrotvorskaya TPP; • Construction of theDnestrovskaya PSHPP; • Commissioning of a new unit of the capacity300 MWat theKievskaya CHPP-6; • Construction of theKanevskaya PSHPP; • Completion of construction Tashlytskaya PSHPP. KanevskayaPSHPP Dnestrovskaya PSHPP Tashlytskaya PSHPP

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