Ukrzaliznytsia establishes new company UZ Energo to address energy needs

Ukrzaliznytsia will soon implement distributed electricity generation to meet the needs of the company and consumers connected to the community's networks. For this purpose, a separate legal entity, LLC UZ Energo, has been established.

Currently, Ukrzaliznytsia, one of Ukraine's largest electricity consumers, faces a significant deficit in electrical energy. Consumption limits cover only 75% of the company's actual requirements for transportation processes and current economic activities. According to forecasts, approaching the autumn-winter period may exacerbate the electricity supply deficit, potentially affecting train operations and municipal services for household consumers. Ukrzaliznytsia also operates as a distributor of electricity and water supply systems.

"Ukrzaliznytsia ranks among Ukraine's top five distribution companies in terms of network length and electricity transfer volumes. The company plays a crucial role in Ukraine's Unified Energy System, providing electricity to numerous households and businesses nationwide. Last winter, we assisted the country's energy system by ensuring power supply to certain administrative units. Given the current generation challenges, we are gearing up to support Ukraine through its most challenging autumn-winter period in history. Hence, the decision to construct dozens of gas turbine power units totaling up to 250 MW has been approved. Currently, Ukrzaliznytsia is actively negotiating with suppliers and international financial organizations to swiftly implement this project," noted Eugene Lysenko, CEO of Ukrzaliznytsia.

The newly formed company UZ Energo will construct gas power plants with a total capacity of up to 250 MW across various regions of Ukraine. Initially, these plants will be installed in regional centers and connected to Ukrzaliznytsia's network, supplying power to railway facilities, social services, and critical infrastructure facilities in other sectors of the economy.

In compliance with legal requirements, activities involving electricity generation using gas turbine power units and energy storage installations must be carried out by a separate legal entity distinct from the distribution system operator, with a license for commercial electricity production. Thus, Ukrzaliznytsia's management has approved the creation of a separate company, wholly owned by LLC Zbut Energy LTD, in which Ukrzaliznytsia holds a 100% stake in the statutory capital.

It is worth noting that Ukrzaliznytsia, as the operator of the electricity distribution system, serves over 100,000 connected consumers.