EBRD loans €160 for decentralised Ukraine power generation

• 4 days ago (2025-07-14)
• David Flin

Europe 1127 Gas engine plant 77

---

The European Bank for Reconstruction and Development (EBRD) has signed an agreement to supply a €160 million loan to Ukrnafta , a Ukrainian state-owned oil and gas company which is using EBRD finance to supply and install small-scale gas-fired distributed power and cogeneration capacity around the country.

The loan will enable Ukrnafta to install facilities with a total power generation capacity of 250 MW.

There will also be €121 million of grants from external donors and Sweden’s Swedfund will provide a €1 million grant for technical assistance.

The project includes workforce management and leadership training programmes.

While the gas-fired engines will provide supplementary energy to the country in the short-term, the same equipment can later be used to support Ukraine’s plan to increase the share of renewables in its energy mix, with the gas engines then being used to balance intermittent renewable energy input.