The European Bank for Reconstruction and Development (EBRD) has signed an agreement with PJSC Ukrhydroenergo to provide a €75 million loan to finance the project “Modernization and restoration of hydroelectric power plant generation facilities,” the company said.
“The loan financing is supported by a European Union guarantee under the Ukraine Investment Framework, an instrument for mobilizing financing for Ukraine’s recovery and long-term growth,” the company said in a statement on its Telegram channel on Thursday.
According to the statement, the financing package also includes investment grants from international donors amounting to EUR 20 million.
“The estimated total cost of the project, including Ukrhydroenergo’s own contribution, is approximately EUR 120 million,” the company concluded.
According to the chairman of the supervisory board, Valentin Gvozdiy, attracting EBRD financing under the EU guarantee is an important confirmation of the confidence of international partners in Ukrhydroenergo and the quality of the company’s corporate governance.
“The project will strengthen the reliability of hydroelectric power plants and, accordingly, the stability of Ukraine’s energy system,” he said.
As noted in the statement, the project funds are planned to be used, in particular, to purchase critically needed equipment for certain hydroelectric power plants of the company, such as hydraulic power equipment damaged as a result of Russia’s military aggression, hydromechanical equipment for modernization, and equipment for responding to emergencies in conditions of martial law (emergency assistance mechanism).
As noted by Bogdan Sukhetsky, acting director general of Ukrhydroenergo, the funding will enable the timely purchase and implementation of critically needed equipment, as well as the creation of a reserve for rapid response to emergencies.
“The availability of these funds is important for maintaining the continuous operation of the enterprise and fulfilling production tasks in difficult conditions,” he stressed.
The project also includes programs to improve the qualifications of engineering personnel, enhance ESG practices, and prepare an action plan for gender equality. The project is scheduled for completion in 2030.
Ukraine in January-June 2021 additionally commissioned 709 MW of new electrical installations based on renewable energy sources (RES), which made it possible to increase the overall capacity of RES generation in the country to 9,225 MW.
According to the State Agency on Energy Efficiency and Energy Saving of Ukraine, in particular, in January-June, wind power plants (WPP) with a capacity of 278.4 MW were additionally built, solar power plants (SPP) for 257.4 MW, SPPs of private households – for 156 MW, biomass power plants – for 10.4 MW, biogas power plants – for 6 MW, and small hydropower facilities (HPP) – for 1.6 MW were also commissioned.
“About EUR530 million has been invested in the establishment of 709 MW of renewable energy facilities,” the agency stressed.
Of the total capacity of 9,225 MW of Ukrainian renewable energy sources, the share of solar power plants is 6,351 MW, renewable energy sources – 1,593 MW, household solar power plants – 933 MW, solid biofuel power plants – 119 MW, small hydroelectric power plants – 118 MW and biogas plants – 111 MW.
The largest renewable energy capacity in Ukraine was commissioned in 2019 – some 4,669 MW, while in 2020 – 1,574 MW, in 2018 – 848 MW, in 2017 – 291 MW, in 2016 – 136 MW, in 2015 – 32 MW.
HPP, RENEWABLE ENERGY, RENEWABLE ENERGY FACILITIES, SPP, WPP
