Ukrainian hydro company receives funds to rebuild war-torn assets
Power Engineering International
Posted on: 30 April 2025
Ukrhydroenergo has received the first tranche of €50 million under a loan agreement with the EBRD and the Italian Government to rebuild Ukrainian hydro assets.
Ukrhydroenergo, a Ukrainian state-owned hydropower generating company, has received the first tranche of €50 million ($56.8 million) under a loan agreement with the European Bank for Reconstruction and Development (EBRD) and the Italian Government for the “Emergency Restoration of Hydropower Plants” project.
The funds were provided in March 2025 for emergency liquidity support of the company.
This first €50 million out of a total of €200 million ($228 million) is meant to provide financial support to Ukrhydroenergo and strengthen the financial stability of the company in the event of martial law, the company said.
The purpose of the project is to restore some of Ukraine’s energy infrastructure that was damaged or destroyed as part of the Russian military invasion, which began in February 2022.
Last December, Ukraine’s Cabinet of Ministers approved the proposal submitted by the Ministry of Energy and Ukrhydroenergo, which is meant to restore Ukrainian hydropower facilities within two years, Ukrinform reports.
Have you read?
EIB announces €420m for infrastructure and energy projects in Ukraine
DTEK expands Tyligulska wind farm to 500MW
Ukraine’s energy system has been regularly targeted by Russia since its full-scale invasion in 2022, with attacks intensifying since the spring of 2024, per the International Energy Agency (IEA).
Over the course of 2022-23, about half of Ukraine’s power generation capacity was either occupied by Russian forces, destroyed or damaged, and approximately half of the large network substations were damaged by missiles and drones.
By May 2024, Ukraine was left with only around one-third of its pre-war capacity, even before another round of attacks during the summer. Ukraine experienced an acute power deficit over the summer months of 2024, when its generation capacity fell 2.3GW below its peak demand of 12GW, despite electricity imports from Ukraine’s western neighbours.
Originally published by Sean Wolfe on Factor This!
