EIB Backs Ukraine’s Energy Rebuild with Decarbonisation Plan for War-Damaged Power Giant Centrenergo

The European Investment Bank (EIB) has stepped up support for Ukraine’s war-ravaged energy sector, announcing €350,000 in technical assistance to help state-owned power company Centrenergo rebuild its operations while transitioning to clean energy.

The initiative marks a pivotal moment in Ukraine’s energy recovery strategy—linking immediate reconstruction needs with long-term decarbonisation and energy security goals following widespread destruction caused by Russia’s invasion.

From Devastation to Transformation

Before the full-scale invasion in 2022, Centrenergo was a key pillar of Ukraine’s power system, supplying electricity to millions of households and businesses. Today, all of its major power plants have been destroyed or rendered inoperable, leaving the company without generation capacity.

Rather than simply restoring outdated infrastructure, the EIB-backed programme aims to rebuild smarter and greener.

“Ukraine’s energy system has suffered severe losses, and recovery must go hand in hand with modernisation,” said EIB Vice-President Karl Nehammer. “We are supporting Centrenergo to rebuild in a way that is more resilient and aligned with the green transition.”

Blueprint for a Low-Carbon Energy Future

Under the agreement, EIB experts will work closely with Centrenergo to develop a comprehensive decarbonisation roadmap, including:

• Assessment of damaged energy assets

• Identification of priority investments for rebuilding capacity

• Transition planning away from coal-based generation

• Integration of low- and near-zero emission technologies

The goal is to create a phased, investment-ready strategy that not only restores electricity supply but also positions Ukraine as a future player in Europe’s clean energy landscape.

Energy analysts say such planning is critical, as rebuilding legacy coal infrastructure would risk locking Ukraine into outdated, carbon-intensive systems for decades.

Aligning Recovery with National and European Goals

The project directly supports Ukraine’s National Energy and Climate Plan, which aims to align the country’s energy sector with European Union climate targets and accelerate integration with EU energy markets.

Ukraine’s Deputy Minister of Energy, Anatolii Kutsevol, described the initiative as a vital step in rebuilding the sector.

“This support will help restore Centrenergo’s facilities after Russian attacks while enabling the transition to carbon-neutral energy production technologies,” he said. “It is an important contribution to strengthening and modernising our energy system.”

Turning Crisis into Opportunity

For Centrenergo, the destruction of its thermal power assets—while devastating—has also created an opportunity to rethink its energy model.

“This is a historic moment for us,” said CEO Yevhen Harkavyi. “After losing a large part of our thermal generation, we must seize this opportunity to replace it with clean energy sources.”

He added that the partnership with the EIB provides a clear foundation for rebuilding a more resilient and sustainable power system, not only for Ukraine but also as part of Europe’s broader energy security framework.

EU-Backed Advisory Support

The technical assistance is being financed through the EIB’s “EU for Ukraine Advisory Programme”, which focuses on providing expertise and strategic guidance for reconstruction projects across key sectors.

While the €350,000 funding is modest compared to the scale of Ukraine’s energy losses, its value lies in unlocking larger investment flows by creating bankable, well-structured projects that can attract international financing.

Energy Security at the Heart of Recovery

Ukraine’s energy infrastructure has been a primary target during the war, with repeated attacks causing widespread blackouts and disrupting economic activity.

Rebuilding the system is therefore not only a matter of infrastructure—but also of national resilience, economic recovery, and geopolitical stability.

Experts say combining reconstruction with decarbonisation could position Ukraine as a future hub for clean energy, including renewable power exports and green hydrogen, particularly as Europe seeks to reduce dependence on fossil fuels.

Laying the Groundwork for a Resilient Future

As Ukraine moves from emergency response to long-term recovery, the Centrenergo initiative signals a strategic shift: rebuilding not just what was lost, but creating a more sustainable, secure, and future-proof energy system.

With international support and a clear transition roadmap, Ukraine’s energy sector could emerge from the conflict stronger—aligned with global climate goals and integrated into Europe’s evolving energy landscape.