RLF - Power One BESS and Power Generation Support

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

EUR 22.3 loan in favour of Power One LLC (Ukraine) to construct private power generation capacities, consisting of gas-fired peakers with a total capacity of 36.8MW and BESS facilities with a total capacity of 31.5MW, in Ukraine

Project ID 56367

Status Approved

Location

Ukraine

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Hrinchenko Antonina
Hrinchenko.AI@power1.energy
+380933610170
36-D Saksaganskogo Street, 01033 Kyiv, Ukraine

Project ID 56367

Status Approved

Location

Ukraine

Business Sector

Energy

Notice Type

Private

Approval Date

22 Oct 2025

Disclosure date

13 Nov 2025

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Project Objectives

Provide fast-response capacity and storage to stabilise the grid, support wartime energy security, enable renewable integration, and supply ancillary services (peaking, frequency response).

Transition Impact

ETI score: 70

Primary Quality: Resilient. The proposed financing package will finance the construction of a flexible gas-fired power generation capacity in Ukraine, as well as installation of a BESS, enhancing the resilience of Ukraine's power system.

Secondary Quality: Inclusive. The Project will help safeguard access to electricity for people, preserving their living standards and livelihoods under Russia's ongoing full-scale aggression, while ensuring uninterrupted energy supply to people's homes and workplaces (including in energy deficit regions of Ukraine).

Client Information

POWER ONE

Power One, a Limited Liability Company registered in Ukraine, is a newly created entity established and 100% owned by Dragon Capital, a leading investment firm and long-term client of the Bank.

EBRD Finance Summary

EUR 22,300,000.00

Total Project Cost

EUR 41,800,000.00

Additionality

Financing Structure: Crisis response - EBRD financing is provided under the extraordinary circumstances of the war and effectively bridges the financing gap when the market for long-term capex financing in Ukraine is nearly closed.

Risk mitigation: EBRD's ability to absorb country and political risk enables it to continue financing in Ukraine during wartime, enabling continued financing and mobilising support from other donors and investors.

Environmental and Social Summary

Category B (ESP 2024), high risk due to country context, sector and size of power plants. The development of a number of gas engine power plants in Ukraine, all of which will be below 50 MW thermal requires an environmental and social assessment to confirm compliance with National and EU legislation as well as the Bank ESR requirements. The equipment will include standard gas engine modules that are designed to meet EU standards. All plants are below 300 MW thermal threshold for A category plants and the project is aligned with the Bank Energy Policy and agreed derogation for Ukraine with respect to fossil fuels.

The Project was subject to the Bank's limited E&S due diligence due to the war constraints, security risks, however adequate information has been provided to enable a meaningful E&S due diligence and assessment of E&S risks and develop an ESAP that allow the Project to be structured to meet the Bank ESRs. An NTS outlines the nature of the project and type of gas engines used plus environmental and social mitigation measures and will be disclosed as part of PSD.

It should be noted that there is a statutory limitation in Ukraine on the disclosure of geographical locations, other sensitive information involving critical infrastructure, and stakeholder engagement due to the ongoing war. Co-generation and generation facilities are also exempt from the Ukrainian EIA legislation. This has been reflected in the disclosure of information and will be updated to include more detailed site-specific inflation in the future once martial law is lifted. The disclosure allows for appropriate description of the project and E&S impacts and mitigation measures but is not detailed and will need to be updated. This is included in the ESAP to allow the project to meet the Banks requirements in the future.

Notwithstanding the above constrains the Bank has undertaken an independent risk based environmental and social due diligence and assessment, inclusive of the national EIAs prepared for each site and a preliminary E&S impact assessment based on available data for the three sites being developed. This is summarized in the Non-Technical Summary (NTS) for the project. The Bank's ESDD has confirmed that the project will not have major adverse impacts on environmental and social receptors during construction and operations and will meet the EU Medium Sized Combustion Plant Directive (MCPD) emission standards for new gas engines as well as BAT (Best Available Technology) requirements under EU regulations for the sector as applicable to this size of plant. If any plant will be above 50 MW thermal (i.e. cumulative impact associated with a number of engines at one site) the Company will impact the BAT requirement as defined under the EU Industrial Emission Directive (IED) and add additional DeNOx abatement. Noise and air modelling undertaken by the Client, did not show any risks to sensitive areas or reach of National or EU air quality standards, but post construction assessment will be undertaken to verify this, and as needed abatement mitigation measures added.

Power One, the company set up for project implementation has a dedicated Human Resource policy, worker grievance mechanism, environmental protection programme and is in the process of adopting required ESMS to be cascaded down from the Sponsors level, who have well established policies and procedures, including corporate Environmental and Social Policy, Code of Conduct and Ethics, and Grievance Mechanism. Project works will be carried out by a competent EPC contractor with Client's supervision and oversight. Construction related E&S impacts will be managed by dedicated management plans detailed in the ESAP and agreed with the Client. BESS equipment will be delivered to the border by Hithium and handed over to EPC contractor for further delivery on site. Hithium as BESS supplier is a Chinese company with presence in many other countries, including the USA, has been assessed in terms of supply chain management systems, their risk screening and traceability policies. The company has a very mature SCMS in place with human rights policy statement, Supplier CoC signed by all their suppliers, third party-verification and audits, that are published and disclosed with corrective actions agreed. EBRD has followed the management approach to BESS and ring-fencing Tier 1 and Tier 2 suppliers and manufacturing facilities used for the project that are not in high-risk locations, while preparing the Project with the client and Hithium. Hithium is not operating in high-risk locations and is a manufacturer of batteries produced at facilities that have been visited by external certification bodies, including for the purposes of Power One project. Batteries used in BESS are lithium iron based.

Socio-economic and demographic data has been reviewed during E&S DD by an independent consultant who has confirmed that each site is not located in an environmentally sensitive areas and no sensitive social receptors in immediate vicinity. Project construction will be implemented under special Security Plan and all industry-specific health and safety standards, including traffic management and construction engineering supervision. No resettlement will be associated with the project as the land required for sites have been acquired via commercial lease and easement agreements with the private owners. Cadastral data outside project area is currently not available due to martial law, however, impact on livelihoods and conversion of agricultural land into construction land will be assessed by the Client as ESAP commitment once martial law is lifted. With respect to associated facilities, namely the overhead transmission line and the gas pipeline connection points, these are of limited scale and, following verification, no material environmental or social impacts have been identified. Project-specific Stakeholder Engagement Plan (SEP) and grievance mechanism have been developed and adopted by the Company, containing precautionary approach to meet national requirements and to protect safety of stakeholders without compromising the purpose of consultation, which will take place at the project level via bilateral and targeted engagements and safe information sharing. Additional public consultation and full local E&S assessment disclosures will be carried out and updates to SEP and public consultation summary will be made once the Martial Law is lifted.

The ESAP has been agreed in principle and is scheduled for final agreement prior to Board submission. Through the implementation of the Bank's ESAP, the Company will meet the Bank's requirements in the future. The Company will appoint a dedicated manager to help manage the E&S risks and ESAP implementation. The bank will continue to engage with the Client on developing and strengthening its ESG management system.

Green assessments

Paris Agreement alignment
The project is determined aligned with the mitigation and adaptation goals of the Paris Agreement ("PA") based on the application of the EBRD's Paris alignment approach for directly financed investments.

For mitigation, following a specific assessment, the project is deemed as aligned with Ukraine's updated 2021 NDC and the 2024 National Energy and Climate Plan (NECP), which targets new flexible capacity to support renewables and reduce curtailment. It is consistent with a low-carbon pathway (the 2023 Clean Energy Roadmap for Ukraine recognises the short-term role of flexible gas generation until renewables are scaled up), and has a low-risk of carbon lock-in (there are no long-term contracts - merchant sales, it is limited in size and usage - peaking use, and it's deployed as emergency infrastructure in light of Ukraine's damaged energy capacity).

Material physical climate risks were identified for the project and were addressed through ESAP actions. The project does not contravene national policies for adaptation or the climate resilience of the wider system. It is, therefore, aligned with the adaptation goals of the Paris Agreement.

Green finance attribution
41% of the EBRD financing is classified as green finance, as it supports activities to achieve climate mitigation objectives (BESS component). The attribution is made in line with the methodology to determine the green finance attribution of EBRD investments, and specific guidance in the section 3 & 4.

Company Contact Information

Hrinchenko Antonina
Hrinchenko.AI@power1.energy
+380933610170
36-D Saksaganskogo Street, 01033 Kyiv, Ukraine

PSD Last Updated

13 Nov 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search

RLF - Power One BESS and Power Generation Support

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)