EBRD And EU Provide €75M Loan To Ukraine’s Ukrhydroenergo For Hydro Plant Upgrades, Green Energy, Staff Training, And Wartime Energy Security

The European Bank for Reconstruction and Development (EBRD) is supporting Ukraine’s state-owned hydropower company, Ukrhydroenergo (UHE), with a financing package designed to secure critical equipment for hydro power plants and reinforce the country’s energy resilience amid ongoing wartime challenges.

The package includes a senior loan of up to €75 million from the EBRD and up to €20 million in investment grants from international donors, contributing to a total project cost of €120 million, which also includes UHE’s own funds. The financing will fund the supply of essential equipment, including an emergency reserve stock of electrical components, and consultancy services to ensure efficient project implementation.

The EBRD loan is backed by a European Union guarantee under the Ukraine Investment Framework (UIF), which is aimed at unlocking financing for Ukraine’s recovery and long-term development. The project is part of the EBRD-UIF HI BAR agreement signed in 2024, focusing on strategic sectors such as renewable energy.

The investment will enable UHE to replace damaged and worn-out components at selected hydro power plants, enhancing operational efficiency and increasing renewable energy generation. Once complete, the project is expected to produce around 223 GWh of green electricity per year, reducing Ukraine’s reliance on electricity imports and strengthening its ability to meet peak demand. It is also expected to contribute annual CO₂ savings of more than 96,000 tonnes.

In addition to infrastructure upgrades, the project includes a strategic training programme for UHE engineering staff, addressing human capital gaps to ensure smooth integration of modern equipment and compliance with European standards. All procured equipment will meet EU environmental and safety standards, and project activities will take place within existing facilities without any land acquisition or displacement.

The project is fully aligned with the Paris Agreement and qualifies as 100 per cent green finance under EBRD’s Green Economy Transition methodology. Donor-funded technical cooperation will further support the project, providing rapid capacity-building for procurement, enhanced ESG practices, and the development of a gender action plan, reinforcing UHE’s commitment to sustainability and inclusion.

By backing this initiative, the EBRD aims to help Ukraine maintain a stable and secure energy system, accelerate its green transition, and strengthen resilience under challenging conditions. Since the start of Russia’s full-scale invasion in 2022, the EBRD has significantly increased its support in Ukraine, including energy security, vital infrastructure, food security, trade, and private sector development. By 2025, the Bank’s total wartime investments in Ukraine are expected to approach €9 billion, making it the country’s largest institutional investor.