Oschadbank has Financed the First Energy Project Covered by International Insurance Amounting to EUR 23.6 Million

Oschadbank has provided LLC “Elektryka Ukraine” with EUR 23.6 million of the long-term project financing for the construction of a 50 MW battery energy storage system (BESS) with a capacity of 131.2 MWh.

This financing covers approximately 70% of the project's cost and aims to increase the flexibility and resilience of Ukraine's energy system amid limited generation capacity and high loads caused by the war.

The project has been implemented under a long-term contract with NPC “Ukrenergo” and provides automatic frequency restoration reserve services - one of the key mechanisms ensuring the energy system balance.

An essential feature to the agreement has been the involvement of international insurance coverage through the participation of Lloyd’s syndicates. While this is the first case for Oschadbank in the context of energy project financing, this is one of the few cases in Ukraine when international insurers have participated in covering the risks of an infrastructure project amid a war.

BESS systems have a strategic role within the modern energy sector: they enable electricity to be quickly stored in periods of surplus and released into the grid during periods of deficit, thereby maintaining the stability of the energy system, lowering the risk of emergency blackouts, as well as increasing the reliability of the power supply.

” This project marks Oschadbank’s first experience in energy financing structuring that attracts international insurance coverage, in particular through the participation of Lloyd’s syndicates. At the same time, Oschadbank holds a leading position in energy financing. Throughout the full-scale war, the bank has already concluded agreements amounting to over UAH 7.4 billion in the corporate business segment to finance the energy sector. The fact that international insurance companies are now willing to participate in energy projects in Ukraine amid the war paves the way for a significant growth in the energy sector and the complex infrastructure projects' implementation,” stated Serhii Chernikov, Director of the Corporate Business Department of Oschadbank.

“We are sincerely grateful to Oschadbank for its trust, professionalism and willingness to support the Ukrainian energy sector even in the most difficult periods. Furthermore, we would like to express our deepest gratitude to the Government of Ukraine for adopting Resolution No. 1320, providing the regulatory framework required for the implementation of such projects. Thanks to this decision, we were able to build this energy storage facility and are planning to build more. Energy storage systems are more than just an infrastructure asset; they form the basis of Ukraine's energy security and the future energy grid. We look forward to continued fruitful cooperation with Oschadbank in our future project implementation, as there is still much work ahead in developing a reliable and modern infrastructure for the country’s energy sector,” said Maksym Pyshnyy, Director of LLC "Elektryka Ukraine".

Oschadbank ranks among the leaders in terms of financing the energy sector. With the bank’s support, new energy capacities totaling nearly 600 MW have already been generated, representing over 38% of the total volume financed by the Ukrainian banking system.