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The European Bank for Reconstruction and Development (EBRD) is supporting Ukraine’s energy security by lending €22.3 million to private Ukrainian energy company Power One for the financing of new peaking generation capacity and battery energy storage systems (BESS).
The loan will enable Power One to construct and operate advanced gas-piston power plants with total capacity of 36.8 megawatts (MW) and BESS with total capacity of 31.5 MW at multiple sites in western Ukraine.
Ukraine’s energy facilities have faced a campaign of destruction since the start of Russia’s full-scale invasion, with the attacks intensifying in October 2025. The country has lost approximately 9,000 MW of its generation capacity and 90 per cent of all available flexible generation since the start of the war, directly affecting households and businesses, and causing regular rolling blackouts that are disrupting the lives of millions of people.
As Ukraine faces its fifth wartime winter, distributed flexible power generation and BESS are urgently needed to preserve the power system and ensure Ukrainians have electricity and heating during the coldest months of the year.
Gas-fired peakers operate only during periods of high electricity demand to balance the grid and prevent blackouts. They are designed to start up and shut down quickly, making them ideal for responding to sudden demand surges or for balancing intermittent renewable energy sources such as solar and wind.
Meanwhile, integrating BESS will significantly enhance energy diversification and allow for flexibility in the energy supply chain. Incorporating both technologies will help to stabilise Ukraine’s grid during peak demand periods, reducing the frequency and duration of power outages and ensuring uninterrupted electricity supply.
In the long term, the infrastructure will act as balancing capacity for renewable energy, supporting Ukraine’s green energy future.
The EBRD’s loan is complemented by a €3 million investment grant from Norway and benefits from partial first-loss risk cover from the EU’s Ukraine Investment Framework.
Power One is a newly created entity established and 100 per cent owned by Dragon Capital, a leading investment firm in Ukraine and longstanding client of the EBRD.
The EBRD is Ukraine’s largest institutional investor and has deployed more than €8.5 billion in the country since the start of the war. Its five investment priorities in Ukraine are support for energy security, vital infrastructure, food security, trade and the private sector.