EBRD Grants €22.3m To Power One To Build 36.8 MW Gas-Piston Plants And 31.5 MW Battery Storage To Boost Ukraine’s Energy Security Amid War Damage

The European Bank for Reconstruction and Development (EBRD) is providing €22.3 million in financing to Power One, a private Ukrainian energy company, to help strengthen Ukraine’s energy security. The funding will support the development of new peaking generation capacity and battery energy storage systems (BESS), both of which are essential to stabilising the country’s electricity supply. With this loan, Power One will build and operate advanced gas-piston power plants with a total capacity of 36.8 megawatts. It will also install battery energy storage systems with a combined capacity of 31.5 megawatts across several locations in western Ukraine. These facilities are intended to help the country manage electricity demand more effectively and reduce the risk of power outages.

Since the start of Russia’s full-scale invasion, Ukraine’s energy system has experienced continuous and severe damage. Attacks on energy infrastructure intensified in October 2025, resulting in the loss of around 9,000 megawatts of generation capacity and about 90 per cent of Ukraine’s flexible power generation. This loss has led to widespread rolling blackouts, disrupting daily life for millions of people and affecting businesses across the country. As Ukraine prepares for its fifth winter during the war, the need for reliable and flexible power solutions is more urgent than ever. Gas-fired peaking plants are particularly important because they come online only when electricity demand is at its highest.

They can start up and shut down quickly, allowing them to respond to sudden spikes in demand or to compensate for fluctuations in renewable energy supply from sources like wind and solar power. Battery energy storage systems will further enhance the resilience of the energy grid. By storing electricity and releasing it when needed, these systems help maintain a stable and consistent power supply. The combination of peaking plants and BESS will strengthen Ukraine’s ability to manage peak loads, reduce the frequency and duration of blackouts, and maintain reliable electricity and heating, especially during the coldest months of the year.

In the long term, these new energy assets will help support the integration of more renewable energy into Ukraine’s electricity mix, serving as balancing capacity for intermittent sources and contributing to the country’s clean energy transition. The EBRD’s financing is supported by an additional €3 million investment grant from Norway. The project also benefits from partial first-loss risk coverage through the European Union’s Ukraine Investment Framework, further reducing financial risks and encouraging investment.

Power One is a newly established company that is fully owned by Dragon Capital, one of Ukraine’s leading investment firms and a long-standing client of the EBRD. The EBRD remains Ukraine’s largest institutional investor and has committed more than €8.5 billion to the country since the beginning of the war. Its investment strategy in Ukraine focuses on ensuring energy security, restoring critical infrastructure, supporting food and trade systems, and promoting private sector resilience.