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.