Oschadbank is developing its own energy system and has allocated UAH 11 billion to Ukraine’s energy transformation

Over the past two and a half years, Ukrainian banks have financed energy projects with a total value of over UAH 64 billion. Oschadbank is one of the leaders in this field: in 2026, the bank entered into loan agreements to finance energy projects totalling UAH 11 billion. At the same time, the bank is developing its own energy supply system, moving from backup power to active energy consumption management. This was stated by Yurii Katsion, Chairman of the Management Board of Oschadbank, during the first annual forum of the Ukrainian Association of Renewable Energy, UKRAINE RENEWABLE ENERGY AGENDA 2027.

According to Yurii Katsion, despite the war risks, the energy sector remains one of the most active areas for investment in Ukraine. Cooperation between banks and international financial institutions plays a key role in the market’s development, particularly the use of risk-sharing instruments, which enable more funding to be attracted to new projects.

“Investors in the energy sector can still be described as the greatest optimists in the country. It is they who, despite all the risks, are investing in the country’s future. Lending trends confirm growing business interest in this sector: whilst Oschadbank concluded energy loan agreements totalling UAH 6.77 billion for the whole of 2025, in 2026 the amount reached UAH 11 billion. This demonstrates the business community’s willingness to invest in the country’s energy independence and to implement long-term projects,” said Yurii Katsion.

In the banker’s opinion, a key factor in ensuring continued growth in lending to the energy sector will be restoring the corporate tax rate for banks to at least 25%, down from the current 50%. Such a high tax rate has a critical impact on capital adequacy and limits the banking system’s capacity to lend to the real economy.

Of the total amount of loan agreements concluded by Oschadbank to finance the energy sector in 2026, UAH 8.83 billion relates to corporate business, with a further UAH 1.94 billion going to micro, small and medium-sized enterprises. Half of the agreements in the MSME segment were concluded with the support of state and international programmes. By way of comparison, in 2025 the amount of loan agreements in the energy sector stood at UAH 5.64 billion for large corporate clients and UAH 1.13 billion for MSMEs.

Although large power generation facilities have a long operational lifespan — ranging from 10 to 25 years or more — the payback period for certain projects can now be as short as three years. This enhances the investment appeal of the energy sector and encourages businesses to invest more actively in new capacities.

The Chairman of the Management Board of Oschadbank identified forecasting the medium- and long-term cost of electricity as one of the key challenges for attracting further investment. It is precisely these pricing scenarios that largely determine the economic model of an energy project and its ability to service the financing raised.

Insurance and hedging instruments for price risks should become an important area of market development. They will help make project financial models more resilient to market fluctuations and increase the willingness of banks and international investors to finance new generation and energy storage systems.

Oschadbank’s own experience demonstrates how modern solutions in energy can combine the continuity of infrastructure operations with economic efficiency. The bank has obtained the status of an active electricity consumer and is developing its own energy consumption management system.

The entire branch network is equipped with inverters and battery systems that provide at least four hours of autonomous operation, and in most cases up to eight hours. Automated commercial electricity metering systems have also been installed in branches and regional offices.

To manage this infrastructure, Oschadbank has set up its own control centre. It monitors hourly electricity prices and determines the optimal times for charging and discharging the battery systems. This not only ensures the uninterrupted operation of the banking network during power cuts but also delivers economic benefits through optimised energy consumption.

“We were among the first to implement such a system. It is important for us that energy storage systems ensure not only the continuity of the infrastructure’s operation but also deliver economic benefits. That is why we have set up a control centre that monitors market prices and helps determine the optimal time to use the stored electricity. We continue to develop this system,” said Yurii Katsion.

The UKRAINE RENEWABLE ENERGY AGENDA 2027 forum brought together representatives from the government, the energy business, the banking sector and international financial institutions to discuss the prospects for the development of renewable energy and attracting investment into Ukraine’s energy sector.