Укргідроенерго

First among state-owned companies: Ukrhydroenergo's supervisory board approves financial plan Ukrhydroenergo's supervisory board was the first among state-owned companies to approve the financial plan 2025 based on the new rules that meet OECD requirements. Previously, such powers belonged exclusively to the shareholder, but now this right has been transferred to the Supervisory Board, significantly strengthening the company's corporate governance. At the same time, the medium-term strategic plan for 2025-2027 was approved. These documents were developed based on the key financial, operational and non-financial indicators in the Owner's Expectations Letter. Dr. Valentyn Gvozdiy, chairman of the supervisory board, emphasised the importance of this step:  ‘We were the first among state-owned companies to pave the way for strengthening corporate governance. Thanks to the updated legislation, we are setting high standards of compliance, which are important for attracting investment and ensuring the company's sustainable development. These plans provide clear benchmarks for achieving financial, operational and non-financial goals aligned with Ukrhydroenergo's sustainable development strategy and the state's expectations as a shareholder.’ The Strategic Plan for 2025-2027 envisages infrastructure modernisation, implementation of new projects and introduction of innovative technologies. Such decisions of the Supervisory Board are intended to ensure stable development, optimise financial performance and strengthen Ukrhydroenergo's leadership position in the energy market. For reference, the Government issued an order today approving the Owner's Letter of Expectations for Ukrhydroenergo, which sets out the key requirements and parameters of the company's operations. The document is available at link https://lnkd.in/dc37VmQt The Supervisory Board's Nomination and Remuneration, Risk Management, Strategy and Sustainable Development, Innovation, and Audit Committees met and approved the financial and strategic plans. Nataliya Mykolska Oleg Terletskyi Vitalii Kushnirov Steve Walsh #Ukrhydroenergo #SupervisoryBoard #2025 #financialplan #corporategovernance

Official Statement To the attention of the media and the public Today, certain Ukrainian telegram channels and websites began spreading inaccurate information regarding the procurement of cable products by Ukrhydroenergo from Turkish company ALTAIR LOJISTIK VE TICARET ANONIM. To prevent further manipulation on this sensitive topic, especially given the current situation in the country, we urge everyone to refrain from spreading false information. We recommend relying on verified sources or contacting Ukrhydroenergo for official comments. The matter concerns the results of the procurement procedure conducted as an open tender on the Prozorro electronic procurement platform in 2023. As a result, Ukrhydroenergo and ALTAIR LOJISTIK VE TICARET ANONIM signed the contract for the supply of cable products. It is important to clarify that this procurement covers only a tiny part of the construction of protective structure and, unlike erroneously reported by some sources, has only indirect relation to the construction project. The open tender for 150 kV and 330 kV cables took place from November 29, 2023 to December 13, 2023, and the contract was signed on December 25, 2023. We confirm that during the procurement process and at the time of signing the contract, neither ALTAIR LOJISTIK VE TICARET ANONIM nor its potential beneficiary, Mr. Andrejs Bradens, was included in the list of individuals subject to special economic or other restrictive measures (sanctions). Ukrhydroenergo fully complied with all Ukrainian legislation, thoroughly verifying its contractors for connections to the Russian Federation. On December 4, 2024, it became publicly known that the potential beneficiary of ALTAIR LOJISTIK VE TICARET ANONIM, Mr. Andrejs Bradens, had been added to the U.S. sanctions list. As of December 4, 2024, ALTAIR LOJISTIK VE TICARET ANONIM, which was awarded the contract under the aforementioned tender, is not listed in any sanctions registers. Nevertheless, upon receiving on December 4, 2024 information regarding inclusion of Mr. Andrejs Bradens, the potential beneficiary of ALTAIR LOJISTIK VE TICARET ANONIM, in the U.S. sanctions list, Ukrhydroenergo immediately initiated additional inspections. Based on the results of these inspections, appropriate measures will be taken in accordance with the current contract and Ukrainian legislation. Ukrhydroenergo operates as an open and transparent business. For any inquiries, all the parties interested may contact the Company's press office.

The Supervisory Board of Ukrhydroenergo has approved proposals for the draft Owner’s Expectations Letter for 2025, outlining the company’s key financial, operational, and non-financial objectives. During the meeting, Valentyn Gvozdiy (Валентин Гвоздій) chairman of the supervisory board, informed board members that, according to the company's Charter, approving objectives and financial indicators—such as profitability, liquidity, and solvency ratios, as well as the maximum threshold for capital investments—falls within the Board’s purview. "Submitting proposals to the draft Owner’s Expectations Letter is a crucial step toward strengthening the principles of corporate governance at Ukrhydroenergo. It establishes clear benchmarks for achieving financial, operational, and non-financial objectives aligned with the company’s sustainable development strategy and the state’s expectations as the shareholder", emphasized Valentyn Gvozdiy. The indicators outlined in the draft letter are part of Ukrhydroenergo’s strategy to ensure the company’s stable development, optimize its financial performance, and strengthen its position in the energy market. Additionally, the Supervisory Board approved the company’s activity report for the first nine months of the current year. The report, presented by CEO Ihor Syrota (Ігор Сирота) highlighted the achievement of key financial metrics, including profitability and tax contributions, despite numerous challenges caused by the ongoing war and missile strikes. The company has focused on restoring infrastructure following significant damage to hydroelectric facilities sustained in March, May, June, and August this year. Moreover, the Supervisory Board committee meetings were held, covering appointments and remuneration, risk management, strategy and sustainable development, and auditing. #Ukrhydroenergo #HPP #PSPP #Hydropower #Energy #Supervisory_Board

Despite the challenges of war, Ukrhydroenergo plans to advance the foundations of hydrogen energy in Ukraine Ukrhydroenergo is working on a "green" hydrogen pilot project, an important step toward decarbonising Ukraine's energy sector. This project aims to strengthen the country's energy independence, gradually integrate Ukraine into the global hydrogen market, and align with the European energy system. This was stated by Dr. Valentyn Gvozdiy, Chairman of the Supervisory Board of Ukrhydroenergo, during European Hydrogen Week. At the "Investing in Ukraine's Hydrogen Future: Minimizing Risks and Ensuring Tomorrow's Energy Market" event, Gvozdiy emphasised the importance of developing the hydrogen sector to secure Ukraine's energy independence. He outlined the plans to launch pilot hydrogen projects, establish research centres for hydrogen storage technologies, and create incentive programs to attract investments in hydrogen infrastructure. Against the backdrop of relentless missile and drone attacks by russian forces on Ukraine’s energy infrastructure, Ukrhydroenergo prioritizes restoring damaged hydropower plants, safeguarding hydropower facilities, and ensuring the energy system's flexibility. In this context, the production of green hydrogen as an alternative energy source has become more critical than ever. According to Valentyn Gvozdiy, developing hydrogen energy requires overcoming significant barriers, particularly the high cost of equipment and the lack of a developed consumption market: "The hydrogen energy sector faces challenges due to the high cost of production equipment, especially electrolyzers, which range from $800,000 to $1.2 million per megawatt of capacity. The absence of a mature consumption market also complicates the economic feasibility of such projects. It would be prudent to explore ways to reduce these barriers, such as through international financing or technical innovations. We view hydrogen as a product and a means of energy storage, enabling us to avoid energy losses and use it efficiently." Despite these challenges, Ukrhydroenergo emphasises the necessity of attracting investments and international financing. The company has progressed by negotiating with international financial institutions and potential investors and establishing partnerships with European counterparts to secure financial support for hydrogen projects. Valentyn Gvozdiy also noted that limited state guarantees pose a significant hurdle for project implementation. However, the company actively seeks solutions with international partners, including exploring risk insurance through international financial institutions and creating joint investment platforms with European partners to ensure stable financing. #EuropeanHydrogenWeek #Ukrhydroenergo #Hydrogen #energy #energysystem #electricity #Ukraine #news

Ukrhydroenergo news digest: Recovery is an urgent priority ✔️ Attracting funding to restore destroyed or damaged facilities. ✔️ Possibility to purchase critical backup equipment that guarantees uninterrupted operation of facilities in case of new massive attacks. ✔️ Construction of high level protective facilities and applying of innovative technologies aimed at strengthening the energy infrastructure. - These were the key topics discussed last week on the sidelines of the ReBuild Ukraine conference in Warsaw. Summary: ◼ ReBuild Ukraine: Ukrhydroenergo's management and supervisory board members join the dialogue on rebuilding Ukraine's energy sector. ◼ At a conference, Oleg Terletskyi, a member of the company's supervisory board, emphasized that quick solutions and new approaches are needed to ensure energy stability. DEEPENING COOPERATION WITH FINANCIAL INSTITUTIONS ◼ Ukrhydroenergo and the EBRD discussed opportunities for further cooperation and support for projects to restore lost capacity and perspective projects. ◼ The The World Bank Treasury (IBRD • IDA) and Ukrhydroenergo discussed the next steps in the implementation of the Ukraine - Enhancing Power System Resilience for European Power System Integration Project ◼ Ukrhydroenergo and the European Investment Bank (EIB) discussed further joint steps to support Ukraine's energy stability ◼ Ukrhydroenergo and KfW discussed financing for energy recovery MEETINGS WITH INTERNATIONAL PARTNERS ◼ Top managers of the Austrian company Voith Hydro & Co KG met with the management of Ukrhydroenergo. ◼ Representatives of Ukrhydroenergo visited the factory of the Polish electrical equipment manufacturer TWERD ENERGO-PLUS Sp. z o.o. and visited the facilities of Apator. ◼ Ukrhydroenergo discussed the resumption of the reconstruction of hydroelectric units at the Dnipro HPP with ANDRITZ Hydro. ◼ Representatives of Ukrhydroenergo and the Canadian company Aecon Group Inc. discussed the implementation of the Kanivska PSP construction project ◼ Post-war reconstruction of Ukraine: Webuild and Ukrhydroenergo discuss deepening cooperation. ◼ Ukrhydroenergo enhancing long-term contacts with the Slovenian company Riko d.o.o. ◼ Ukrhydroenergo and Statkraft plan to cooperate in the field of hydropower. Due to the latest massive attack of Russian forces on Ukrainian energy facilities at the November 17, it’s crucial to optimize and speed up the process of approving the documentation required for procurement procedures for critical equipment. #Ukraine #rebuild #recovery #criticalequipment

Ukrhydroenergo and Statkraft plan to cooperate in the hydropower sector On the sidelines of the Rebuild Ukraine forum in Warsaw, Deputy CEO of Ukrhydroenergo Oleksandr Krush met with Petter Tollefsen, Director of International Relations at Statkraft, the Norwegian energy company. During the meeting, the parties discussed opportunities for cooperation in the field of experience exchange and personnel training. The companies are planning to implement joint programs to improve the skills of their employees, which will help to implement the world's best practices in hydropower. The parties also discussed possible technical assistance to Ukrhydroenergo from Statkraft. “Cooperation with Statkraft, a leading hydropower producer in Europe, opens up new opportunities for integrating innovative solutions into the Ukrainian energy sector,” said Oleksandr Krush. Ukrhydroenergo continues to develop partnership projects with international companies to improve efficiency and implement modern standards in the management of energy facilities. #Ukrhydroenergo #hydropower #energy #cooperation #improveskills #opportunities

Ukrhydroenergo and European Investment Bank (EIB) discuss next steps to support Ukraine's energy stability In Warsaw, the general director of Ukrhydroenergo, Ihor Syrota, held a meeting with representatives of the European Investment Bank (EIB) to discuss the resilience of Ukraine's hydropower plants under wartime challenges and prospects for cooperation on strategic projects. Participants included head of the public sector lending department for Eastern European countries, Rafal Rybacki, senior loan officers Pawel Malinowski and Kinga Soltesz, as well as senior engineers Oliver Froend and Oleksandr Antoniuk. Representing Ukrhydroenergo were supervisory board member Vitalii Kushnirov and director of the department of innovative projects, Mariia Bishko. The primary topic of the meeting was the progress in implementing the project “Rehabilitation of Equipment to Enhance Operational Stability and Reliability of Hydropower Plants”. This initiative aims to strengthen Ukraine's energy infrastructure, which has faced ongoing threats for nearly three years due to military actions by russia. EIB representatives once again expressed their support for Ukrhydroenergo, emphasizing that they are actively reviewing submitted documents to approve and launch the joint project. Particular attention was given to resuming cooperation on financing the construction of the Kaniv PSP. This large-scale project is crucial for ensuring Ukraine’s energy independence and enabling its energy system to meet the growing demand for electricity. Commenting on the meeting, Ihor Syrota stated: "The European Investment Bank is a reliable partner proven through many years of cooperation, and today we have received yet another strong signal of support. By discussing future projects, we take an important step toward restoring our infrastructure, which is critically important for the stability of Ukraine's energy system." This meeting reaffirmed the commitment of Ukrhydroenergo and the EIB to continue working together to ensure the resilience and modernization of Ukraine's energy sector, which remains a top priority even under martial law. #Ukrhydroenergo #energy #hydropower #rebuild #financing

Ukrhydroenergo and KfW discussed financing for energy recovery As part of the Rebuild Ukraine conference, Ukrhydroenergo representatives held talks with representatives of the German Government's state-owned bank Kreditanstalt für Wiederaufbau (KfW). The purpose of the meeting was to discuss ways to attract financing to restore the damaged facilities and ensure the sustainable operation of the Ukrainian power system. Ihor Syrota, CEO of Ukrhydroenergo, discussed the current state of Ukraine's power system and the challenges faced by hydropower generation with Thomas Eisenbach, Head of Energy and Natural Resources in Eastern Europe, Caucasus and Central Asia at KfW Development Bank, and Almut Ahlers, Senior Project Portfolio Manager at KfW. Particular attention was paid to finding new financing mechanisms that will allow the restoration work to continue in 2025. “Since the beginning of the full-scale invasion, we have lost 40% of our hydroelectric generation capacity due to targeted attacks by the Russians. We understand how important it is to restore these capacities as soon as possible, as they play a key role in balancing the power system during peak load hours. Cooperation with international financial institutions is critical to further stabilize Ukraine's power system. We are committed to consolidating our efforts to attract resources and utilize them as efficiently as possible,” said Ihor Syrota. #Ukrhydroenergo #energy #power #hydropower #rebuild #financing

A new stage of cooperation: IBRD and Ukrhydroenergo agree on future priorities On 14 November, representatives of Ukrhydroenergo met with representatives of the International Bank for Reconstruction and Development (The World Bank Treasury (IBRD • IDA) in Warsaw as part of the Rebuild Ukraine conference to discuss the next steps in the implementation of Ukraine - Enhancing Power System Resilience for European Grid Integration Project (Installation of Hybrid Power Generation Systems at Ukrhydroenergo). During the meeting, the World Bank's Chief Energy Specialist Koji Nishida and the World Bank's Lead Energy Specialist for Eastern Europe and Central Asia Silvia Martinez Romero agreed with Ukrhydroenergo CEO Ihor Syrota, Vitalii Kushnirov, member of the Supervisory Board of Ukrhydroenergo, and Maria Bishko, Director of the Innovative Projects Department, on further actions to co-finance the Project, which was necessary due to the restructuring of part of the funds associated with the need to restore equipment damaged by missile attacks by the aggressor country and create a reserve of electrical components. This approach will ensure the prompt restoration of critical infrastructure, increasing the resilience of Ukraine's power system to possible future threats. The meeting was focused on the implementation of measures under the Emergency Response component of the Project. The key issue in this context is Ukrhydroenergo's support in ensuring stable operation of HPPs and PSPs. In particular, they discussed the purchase of critical backup equipment to ensure the uninterrupted operation of the plants in the event of massive attacks. The meeting also raised the possibility of resuming cooperation in the framework of allocating funding for the Kanivska PSP project. The results of the meeting demonstrated the continued support of the partners, who once again confirmed their readiness to work together to strengthen the Ukrainian energy sector. For Ukrhydroenergo, this was another piece of evidence of trust and commitment to the company's further development. The agreed initiatives open up new opportunities to modernise infrastructure, improve energy security and adapt to modern challenges. The partners expressed their readiness to actively contribute to the implementation of innovative solutions that will strengthen Ukraine's position as an important participant in the European energy market. #Ukrhydroenergo #energy #hydropower #futurepriorities

Resilience in every kilowatt: Ukrhydroenergo's investments in the country's energy stability Despite more than 140 missile strikes and the loss of 40% of its capacity, Ukrhydroenergo actively invests in the protection and restoration of energy infrastructure. At the ReBuild Ukraine conference in Warsaw, company supervisory board member Oleg Terletskyi emphasised that swift decisions and new approaches are essential to ensure energy stability. These include building protective structures and implementing innovative technologies to strengthen the energy infrastructure, which remains vulnerable due to Russia's military aggression. “Our investment activities encompass four main areas: reconstruction of existing facilities, implementation of new promising projects, recovery efforts, and protection of equipment, buildings, and structures,” said Oleh Terletskyi. According to him, these strategic areas aim to strengthen Ukraine's energy system in the long term, which is crucial for national security and economic recovery. The war has posed a significant challenge to the company's management system. Terletskyi noted that independent corporate governance during wartime has proven to be a critical factor in maintaining the company’s operational effectiveness. Transparency and accountability in management help sustain the trust of key international partners and investors, on whom the company places significant hope for recovery and development. To date, Ukrhydroenergo has attracted more than $600 million from international partners, offering not only loans but also investments in the future of Ukrainian energy. "This is a crucial step for energy independence. The funds raised will enable the company to continue implementing new projects to strengthen Ukraine's energy resilience and restore lost capacity," concluded Oleh Terletskyi. #Ukrhydroenergo #Rebuild_Ukraine #hydropower #energy #recovery