The European Investment Bank (EIB) is lending EUR 200 million to finance the implementation of the ambitious UkrHydroEnergo programme focused on modernising and upgrading electrical energy generation from hydropower.

EIB Vice-President Anton Rop stated: “This is the first EIB-financed project in Ukraine contributing to increasing the share of electricity generation from renewable sources. This will contribute to the reduction of alternative fossil fuel consumption implying a significant decrease in CO2 emissions and help Ukraine to meet its climate change commitments.”

The EIB funds will support the refurbishment and upgrading of 22 conventional and pumped storage hydropower plant units at six power stations along the Dnieper River in central Ukraine. The total final installed capacity of this project will be 980 MW. Once completed, it will extend the economic lifetime of these renewable energy facilities and increase the available electrical capacity by 10%. In addition, the project will improve the operational performance of the Ukrainian power system and assist in its synchronisation in the medium term with the European electricity transmission system.

This project will be co-financed by the European Bank for Reconstruction and Development (EBRD). Technical assistance to support project implementation is funded through the Neighbourhood Investment Facility.

The EIB has so far provided loans in Ukraine, including the current loan, totalling some EUR 1.3 billion covering projects in the energy, road and water sectors, and – indirectly through commercial banks – operations supporting SMEs.