The World Bank approved a $212 million loan package to Ukrhydroenergo for the creation of energy storage facilities, the institution announced on June 30.
“The project will enhance the flexibility of the Ukrainian power system to help synchronize it with the European electricity grid and decarbonize the power sector,” the World Bank announced in a press release.
Ukrhydroenergo, the state-owned operator of hydroelectric power plants in Ukraine, will receive a $177 million loan from the International Bank of Reconstruction and Development (IBRD) and a $34 million loan and $1 million grant from the Clean Technology Fund (CTF).
The loan capital will be used to build 197-megawatt short-duration battery energy storage systems, combined with solar power plants, at four separate hydroelectric plants.
The money will also be used to build a long-duration storage facility at the Dniester Hydro Power Plant.
Arup Banerji, the World Bank’s Regional Country Director for Eastern Europe, said that the investment is “one of the most innovative projects that the World Bank is launching in the Europe and Central Asia region.”
“It will help Ukraine integrate its power system with the European power grid, reduce the influence of vested interests, and contribute to the achievement of a more energy independent Ukraine,” he added.
Meanwhile, Ukrhydroenergo representatives expressed hopes that “the project will encourage greater involvement of the private sector in energy storage.”
The loan package brings the World Bank’s current investment portfolio in Ukraine up to $3.4 billion, spread across 12 different projects aimed at improving infrastructure, health, education and private sector development.
