Ukrhydroenergo and the World Bank signed Loan Agreement under the “Additional Financing for Ukraine–Improving Power System Resilience for European Power Grid Integration (Installation of Hybrid Systems for Electricity Production in Ukrhydroenergo) Project
On April 25, 2025, during the Spring Meetings of the World Bank and the International Monetary Fund held at the World Bank (IBRD) office in Washington, D.C., the Loan Agreement and the Guarantee Agreement were signed between Ukraine and the IBRD acting as an implementing entity of the Clean Technology Fund under the Ukraine – Improving Power System Resilience for European Power Grid Integration (Installation of Hybrid Systems for Electricity Production in Ukrhydroenergo) Project.
Prime Minister of Ukraine Denys Shmyhal, World Bank Managing Director of Operations Anna Bjerde, World Bank Country Director for Eastern Europe Bob Saum and Director General of Ukrhydroenergo Ihor Syrota signed the above-mentioned agreements.
US$ 70 million are provided to support stability of Ukraine’s energy system.
The Project envisages installation of storage systems at four generating facilities of Ukrhydroenergo and is aimed at improving the Company’s performance and extending of the list of ancillary services provided by it in the electricity market. Target capacity of solar (PV) plants is 35.9 MW and battery storage planned capacity is 197 MW. The Project Feasibility Study development is currently underway.
The Additional Financing Project is implemented within the framework of the mutual agreement between Ukrhydroenergo and the World Bank on the loan restructuring and reallocation of funds in order to rapidly respond and solve problems in the context of wartime and overcome the consequences of emergencies in case of their occurrence at Ukrhydroenergo’s facilities.
It should be noted that Ukrhydroenergo has a long-term and successful experience of partnership with the World Bank.
“Cooperation between the World Bank and Ukrhydroenergo has been going on for almost 30 years. During this period, with the financial support of the Bank, a number of extremely important projects resulting in equipment refurbishing, its improved efficiency and extended service life of our HPPs and PSPs has been implemented. We are very grateful to our partners for their assistance in restoring the lost generating capacities and implementing the priority energy projects aimed at increasing Ukraine’s energy resilience”, - said Ihor Syrota, Director General of Ukrhydroenergo.
Background:
Considering the urgency of implementing the Project for its primary purpose, the World Bank requested additional financing for the existing Project under the Global Energy Storage Program in the amount of US$ 70 million from the Clean Technology Fund (CTF).
On June 25, 2024, the CTF Trust Fund Committee approved the Government's request of additional financing in the amount of US$ 70 million.
On April 4, 2025, the Cabinet of Ministers recognized that it would be expedient for Ukrhydroenergo to attract a loan in the amount of US$ 70 million from the World Bank under the state guarantee.
