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Ukrhydroenergo Secures Initial Funding for Hydropower Restoration in Ukraine
Ukrhydroenergo, the state-owned operator of hydropower resources in Ukraine, has successfully obtained the first installment of €50 million (approximately $56.8 million) from a financial agreement established with the European Bank for Reconstruction and Development (EBRD) and the Italian Government. This funding is allocated for the project titled “Emergency Restoration of Hydropower Plants.”
The initial tranche was disbursed in March 2025 as essential liquidity support for Ukrhydroenergo. This sum is part of a substantial total of €200 million aimed at enhancing the company’s financial resilience, particularly in the context of ongoing martial law, as noted by Ukrhydroenergo.
This initiative is designed to repair and revive critical segments of Ukraine’s energy infrastructure that have been damaged or entirely destroyed as a consequence of the Russian military invasion initiated in February 2022. In December of the previous year, Ukraine’s Cabinet of Ministers approved a plan proposed by the Ministry of Energy in conjunction with Ukrhydroenergo, which aims to rehabilitate various hydropower facilities over the next two years, according to Ukrinform.
Since the onset of the full-scale invasion by Russia in 2022, Ukraine’s energy infrastructure has been consistently attacked, with escalations observed since the spring of 2024, as reported by the International Energy Agency (IEA). During the years 2022 to 2023, nearly 50% of Ukraine’s power generation capabilities were either occupied by Russian military forces, destroyed, or severely damaged, with around half of the major network substations suffering damage from missile strikes and drone assaults.
As of May 2024, the country was operating at approximately one-third of its pre-war energy generation capacity, prior to experiencing an additional surge of attacks in the summer months. During the summer of 2024, Ukraine faced a significant power shortage, with its generation capacity falling short by 2.3 GW against a peak demand of 12 GW, despite attempts to supplement the deficit through electricity imports from neighboring western countries.
Source
www.renewableenergyworld.com