Innovative Energy Storage System, developed with the support of the USAID, is to Increase Efficiency at Ukrhydroenergo, and Advance Ukraine’s Integration with European Electricity Grid

July 5, 2021

Unique USAID-developed power storage solution to be implemented with $212 million in World Bank financing

The United States Agency for International Development (USAID), via its Energy Security Project (ESP) developed a unique energy storage system for Ukrhydroenergo, a major supplier of hydropower-generated electricity in Ukraine. The new battery energy storage system will operate in tandem with hydropower plant turbines to provide quick response to the national power grid, while simultaneously reducing the wear-and-tear on the hydro units, improving overall power system reliability and reducing operational costs. USAID ESP prepared a detailed project feasibility study, unlocking $212 million in World Bank financing for implementation at Ukrhydroenergo.

This innovative solution engineered USAID energy advisors will add a combination of short- and long-duration batteries to five strategically selected hydropower plants along Ukraine’s main power generation backbone: Dniester (long-duration battery), Kyiv, Kaniv, Kremenchuk, and Seredniodniprovska. In addition, solar energy systems will be installed to help Ukrhydroenergo reduce daytime energy usage and operational costs at each hydropower plant. Utilizing such renewable and leading-edge technologies supports decarbonization of the energy sector, increases energy efficiency, and decreases dependence on energy imports – fundamental goals of USAID technical assistance in Ukraine.

The state-of-the-art battery systems and related management software will also improve responsiveness and flexibility in Ukraine’s electricity grid, which will advance ongoing efforts to integrate Ukraine into the European Network of Transmission System Operators for Electricity (ENTSO-E).

The Government of Ukraine endorsed the project on June 2, and the World Bank’s Board of Executive Directors approved $212 million for its implementation on June 30.


  • Ukraine’s national power system is vulnerable to reduced flexibility and seasonal electricity generation drops (i.e., when rivers near hydropower plants freeze). This USAID-supported project at Ukrhydroenergo will provide a state-of-the-art power management and balancing system that will help Ukraine increase flexibility and improve seasonal resilience.
  • Ukrhydroenergo is experiencing increasingly high operations and maintenance costs to keep its turbines running, as well as high costs to meet power balancing requirements. The battery storage solution integrates real-time automated operation and load management between the batteries, hydro turbines (at plant and individual turbine levels), pumped hydro stations, and the national transmission system to improve power system reliability and stability, leading to improved power quality.
  • The solar systems installed at each hydropower plant are designed to help Ukrhydroenergo reduce on-site operational costs without delivering this solar-generated electricity into the national grid.
  • The battery systems are designed to be built within existing hydropower plant facilities.
  • The design of the Dniester site includes an opportunity for the local municipality to provide charging points for electric vehicles (EVs).


The USAID Energy Security Project (ESP) works with Ukrainian government, private sector, and civil society leaders to improve Ukraine’s energy security, and transform Ukraine’s energy sector into a modern, market-oriented, EU-integrated, engine of growth. The ESP is working to enhance the energy legal and regulatory environment and increase the reliability of power supply to support sustainable economic growth. ESP’s work is focused on helping the Government of Ukraine create competitive energy markets that will increase transparency, reduce corruption, and benefit the Ukrainian people. ESP also helps the Government of Ukraine and energy sector counterparts improve energy supply and mitigate the impacts of Kremlin aggression. The Project’s activities are centered on support to Electricity, Gas, District Heating, and Renewable Energy projects, as well as cross-cutting actions that promote Gender Integration and Environmental and Social Responsibility. Learn more at