Ukraine's embattled hydropower firm gets 75 million euro boost for repairs
Ukraine’s largest hydropower company received a new financial boost via a 75 million euro ($88 million) loan agreement from the European Bank for Reconstruction and Development (EBRD) on Jan. 8, amid relentless Russian attacks on Ukraine's energy infrastructure.
The loan will help state-owned Ukrhydroenergo purchase stockpiles of critical supplies and replacements for equipment damaged by Russian attacks, as well as to refurbish and modernize old equipment.
The loan is part of a larger 120 million euro ($140 million) recovery project that includes 20 million euros ($23 million) in investment grants from international donors and Ukrhydroenergo’s own money.
The project also covers training programs for engineering staff for professional development, as well as improving environmental practices and a gender action plan.
"The project will enhance the reliability of hydropower plants and, accordingly, the stability of Ukraine's power system," said Valentyn Gvozdiy, head of Ukrhydroenergo’s supervisory board, in a statement.
"It is an important confirmation of international partners' confidence in Ukrhydroenergo and the quality of the company’s corporate governance."
Ukraine generates roughly 10% of its electricity from hydropower, which is classified as a renewable energy source. Russia has frequently targeted Ukraine’s hydropower plants, including Ukrhydroenergo’s plant in Zaporizhzhia, which lost a third of its generation capacity in 2024 following Russian missile strikes.
Russian troops blew up the Kakhovka dam, currently under occupation, in June 2023, causing a mass humanitarian disaster in southern Ukraine. The damage cost Ukrhydroenergo $2.7 billion, and the plant could take up to seven years to rebuild once liberated, the company said.
The EBRD’s new package is supported by an EU guarantee under the Ukraine Investment Framework (UIF). The bank, alongside the Italian government, previously signed a 200 million euro ($234 million) financial package with Ukrhydroenergo in February 2024. The first 50 million euro ($58 million) tranche was distributed in March 2025.
