To cushion against deficits caused by Russian attacks on Ukraine’s energy infrastructure, Ukrainian companies and citizens borrowed $336 million to create an extra 549 megawatts (MW) of power generation in the past nine months.
For context, 1 MW can power approximately 670 homes in the US simultaneously, though the results can differ depending on the usage.
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After the 20 largest Ukrainian banks signed a memorandum that prioritizes loans for energy, companies borrowed Hr. 14.1 billion ($336 million) to purchase power generation equipment between June 2024 and March 2, 2025, according to a Tuesday press release by Ukraine’s central bank.
However, the central bank said the demand is almost six times higher, where the total amount of loans applied reached Hr.81.7 billion ($1.95 billion).
The interest rate for energy loans in Ukraine under the signed agreement on local banking market is 13.5%.
The largest allocations were directed towards:
- the purchase and installation of gas-piston cogeneration units (219 MW)
- the construction of solar power plants (162 MW)
- the purchase of diesel and gasoline generators (124 MW)
These projects are being implemented in 21 regions across Ukraine.
Banks also provided 6,266 loans worth Hr.712 million ($16.95 million) to individuals on top of those to companies.
Russian attacks dealt a heavy blow to Ukraine’s energy sector. Ukraine has lost more than half of its power generation capacity – around 9 gigawatts (GW) or more – due to infrastructure being damaged or destroyed by Russian attacks.
For context, Estonia’s total installed generation capacity was 2.3 GW as of January 2021, according to an Estonian energy operator.
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Ukraine’s energy sector has lost $14.6 billion in direct damages from Russia’s invasion. The indirect losses due to lost revenues, higher electricity prices and blackout-induced operation disruptions have reached $43.1 billion, according to the Kyiv School of Economics (KSE).
At present, over half of Ukraine’s energy comes from its nuclear stations, with the remaining supplies coming from co-generation plants, small generators purchased by businesses and households, and alternative energy sources.
However, Ukraine’s energy deficit decreased from 25% on average in the fourth quarter of 2022 to 4% in 2024 thanks to various governmental and private initiatives, National Bank of Ukraine Deputy Governor Sergiy Nikolaychuk told Kyiv Post previously in an exclusive interview.
However, Nikolaychuk said the energy gap “will be with us for a long time.”
“We understand that during peak consumption and low temperatures we will face blackouts. The system will most likely be unable to fully meet demand,” he added.
