The European Bank for Reconstruction and Development (EBRD) has approved a financing package of up to €75m for Ukraine’s state-owned hydropower producer Ukrhydroenergo to support the procurement of critical equipment and strengthen energy security during wartime.
The package consists of a senior loan of up to €75m from the EBRD, supported by an EU guarantee, alongside up to €20m in investment grants from international donors. Including Ukrhydroenergo’s own contribution, the total project cost is €120m.
The financing will be used to supply essential equipment for hydropower plants, including emergency reserve stocks of electrical components, as well as consultancy services for project implementation. The EBRD loan is backed by a guarantee from the EU under the Ukraine Investment Framework, which aims to unlock financing for the country’s recovery and long-term growth. The project falls under the EBRD-UIF HI BAR agreement signed in 2024, with a focus on strategic sectors such as renewable energy.
The investment will allow Ukrhydroenergo to replace damaged and worn components at selected hydropower plants, improving efficiency and increasing renewable electricity output. Once completed, the project is expected to generate around 223GWh of electricity annually, helping to reduce reliance on imports and support peak demand. It is also projected to cut carbon dioxide emissions by more than 96,000 tonnes per year.
The project is aligned with the EBRD’s Resilience and Livelihoods Framework and includes a training programme to address skills gaps among engineering staff, supporting the integration of new equipment and compliance with European standards. All equipment will meet EU environmental and safety requirements, with works carried out at existing facilities and no land acquisition or displacement involved.
The investment is consistent with the Paris Agreement’s mitigation and adaptation goals and qualifies as 100% green finance under the EBRD’s Green Economy Transition methodology. Donor-funded technical cooperation will support procurement capacity-building, specialist training for hydropower engineers, improvements in environmental, social and governance practices, and the development of a gender action plan.
The EBRD has significantly expanded its operations in Ukraine since Russia’s full-scale invasion in 2022. By the end of 2025, total wartime investments are expected to approach €9bn, spanning energy security, critical infrastructure, food security, trade and private-sector support. The Bank remains Ukraine’s largest institutional investor.
