EBRD and EU support Ukraine’s energy security with €75 million for hydropower

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. The total project cost, including UHE’s own funds, is €120 million. The financing will cover the supply of critical equipment for hydropower plants, including the emergency reserve stock of electrical equipment and the consultancy services for project implementation.

The EBRD’s loan is supported by an EU guarantee under its Ukraine Investment Framework (UIF), dedicated to unlocking financing for Ukraine’s recovery and long-term growth. The project falls within the EBRD-UIF HI BAR agreement signed in 2024. The UIF works to unlock financing for Ukraine’s strategic sectors, notably renewable energy.

This investment will enable UHE to replace damaged and worn-out components at selected hydropower plants, improving operational efficiency and increasing renewable energy generation. Once completed, the project is expected to deliver approximately 223 GWh/y of green electricity, reducing Ukraine’s reliance on electricity imports and strengthening its ability to meet peak demand. The initiative will also contribute to annual carbon dioxide savings of more than 96 000 t.

The project aligns with the EBRD’s Resilience and Livelihoods Framework, supporting essential infrastructure under challenging conditions. It will also introduce a strategic training programme to address human capital gaps among UHE’s engineering staff, ensuring smooth integration of modern equipment and compliance with European standards.

All equipment procured will comply with EU environmental and safety standards, and activities will be implemented within existing facilities without land acquisition or displacement. The project is fully aligned with the Paris Agreement’s mitigation and adaptation goals and qualifies as 100% green finance under the EBRD’s Green Economy Transition methodology.

The project will be supported by donor-funded technical cooperation assignments, including rapid capacity-building for procurement and a strategic new training programme for hydro power engineers and technical specialists. Additional programmes will focus on improving UHE’s ESG practices and developing a gender action plan, reinforcing the company’s commitment to sustainability and inclusion.

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