BAKU, Azerbaijan, January 9. The European Bank
for Reconstruction and Development (EBRD) is providing a €95
million financing package to Ukraine’s state-owned hydropower
company, Ukrhydroenergo (UHE), aimed at securing critical equipment
and strengthening the country’s energy resilience during wartime,
Trend reports
via the Bank.


The package includes a senior loan of up to €75 million from the
EBRD, backed by an EU guarantee under the Ukraine Investment
Framework (UIF), and up to €20 million in investment grants from
international donors. Total project costs, including UHE’s own
contributions, are estimated at €120 million.


Funding will cover the supply of key hydro plant equipment,
including emergency reserve stock of electrical components, as well
as consultancy services for project implementation. The investment
is expected to allow UHE to replace damaged and worn-out equipment,
improve operational efficiency, and increase renewable energy
output. The project could deliver around 223 GWh of green
electricity annually, cutting Ukraine’s reliance on electricity
imports and saving more than 96,000 tonnes of CO₂ each year.


The project falls under the EBRD-UIF HI BAR agreement signed in
2024 and is fully aligned with EU environmental and safety
standards. It also qualifies as 100% green finance under the bank’s
Green Economy Transition methodology and complies with Paris
Agreement goals.







In addition to equipment supply, the initiative will introduce a
strategic training programme for UHE engineers to support
integration of modern technologies and European-standard
compliance. Technical cooperation assignments funded by donors will
focus on procurement capacity, ESG practices, and the development
of a gender action plan.


“The project will help Ukraine maintain a stable energy system,
accelerate its green transition, and strengthen resilience under
unprecedented challenges,” the EBRD said.


By the end of 2025, total wartime financing from the bank is
expected to approach €9 billion, making the EBRD Ukraine’s largest
institutional investor.