State-owned Oschadbank has provided Electricity Ukraine LLC with long-term project financing of €23.6 million for the construction of a modern battery energy storage system (BESS) with a capacity of 50 MW and storage capacity of 131.2 MWh. The project will become one of the largest electricity storage facilities in Ukraine and is aimed at increasing the resilience of the power system amid the war and shortages in generation capacity.
According to the bank, a distinctive feature of the deal was the involvement of international insurance coverage arranged with the participation of Lloyd’s syndicates. For the Ukrainian banking sector, this is one of the first examples of structuring an energy project using international insurance for war-related and infrastructure risks.
Serhii Chernikov, Director of Oschadbank’s Corporate Business Department, said that the willingness of international insurance companies to participate in Ukrainian energy projects even during wartime creates opportunities for scaling up investment in the energy sector and implementing more complex infrastructure initiatives.
According to him, since the start of the full-scale war, Oschadbank has already signed agreements to finance energy projects worth more than UAH 7.4 billion and continues to hold a leading position among Ukrainian banks in financing energy infrastructure.
The BESS project is being implemented on the basis of a long-term contract with NPC Ukrenergo. The energy storage system will provide automatic frequency restoration reserve services, one of the key power system balancing mechanisms that helps stabilize grid operations in conditions of unstable generation and peak loads.
The bank clarified that the loan covers around 70% of the project’s total cost. The main purpose of the construction is to increase the flexibility of Ukraine’s power system against the backdrop of the consequences of Russian attacks on energy infrastructure and limited generation capacity.
Maksym Pyshnyi, Director of Electricity Ukraine LLC, emphasized that energy storage systems are becoming a critically important element of Ukraine’s future energy architecture and a foundation of the country’s energy security. He also said that the company plans to implement several additional energy infrastructure projects and expects to continue cooperation with Oschadbank.
Pyshnyi also highlighted the role of the Ukrainian government in the development of the energy storage sector. According to him, the launch of such projects became possible thanks to the creation of the necessary regulatory framework, in particular the adoption of Cabinet of Ministers Resolution No. 1320 in December 2023, which regulates the construction and reconstruction of energy and gas infrastructure facilities.
Oschadbank also reported that, with the bank’s support, nearly 600 MW of new energy capacity has already been created in Ukraine, accounting for more than 38% of the total volume of new energy facilities financed by the country’s entire banking system.
