DTEK to build one of Europe's largest energy storage facilities, company announces

Ukraine's largest private energy company DTEK secured a $72-million loan to build one of the largest battery energy storage complexes in Eastern Europe, the company said on June 3.

Ukraine’s second most profitable bank, state-owned Oschadbank, state-owned Ukrgasbank, and PUMB will provide the funding for the project, which includes six energy storage installations across the country, totaling 200 megawatts to power 600,000 households.

Battery energy storage facilities are like a large power bank connected to energy grids, and are crucial for storing energy created by renewables like solar and wind for later use. The share of renewable energy in Ukraine's grid was about 10% before Russia’s full-scale invasion. Kyiv wants to up this to 27% by 2030.

Other similar energy storage systems in Eastern Europe include Lithuanian electricity transmission system operator Litgrid's 200-MW units launched in 2023 and a 55-MW battery energy storage system in Razlog in southwestern Bulgaria that went online in 2024.

The loan — DTEK's largest domestic loan agreement to finance new energy infrastructure — covers part of the construction costs for five of the installations and runs until Sept. 25, 2030. DTEK, owned by Ukraine’s richest man Rinat Akhmetov, will cover the remaining costs. PUMB is majority-owned by Akhmetov via his System Capital Management (SCM) Holdings.

"DTEK’s investments in new energy capacity are not only a response to current challenges but also a contribution to the long-term strategy of ensuring Ukraine’s energy resilience and independence. Our goal is not just to restore but to create modern and reliable energy that will become the foundation for the country’s economic development," DTEK CEO Maksym Timchenko said.

Last year, DTEK lost 90% of its energy generation capacities due to Russian attacks on energy infrastructure. In total, Ukraine lost 9 gigawatts of its energy capacity, around half of the country’s peak winter consumption, which facilitated discussions on the need to decentralize its energy sources.

The company sees battery energy storage facilities as a path to decentralization and unification with the EU. In March, DTEK announced it was building Poland’s first large electricity storage facility as part of its plan to establish a pan-European energy system connected to Ukraine.

DTEK has continued to invest in energy projects in Ukraine, most notably committing 450 million euros ($468 million) to expand the Tyligulska Wind Power Plant near the Black Sea coast in cooperation with Denmark's state-owned Export and Investment Fund. It marked the largest ever private investment in Ukraine’s energy sector.

Unlike other state-owned energy companies in Ukraine, DTEK hasn’t been able to secure funding from the European Bank for Reconstruction and Development (EBRD).

Cooperation with Ukrainian banks strengthens Ukraine’s energy security and potential, the company said.

"We recognize our responsibility as a bank that consistently supports the country, and we are doing everything we can to financially contribute to the development of new energy capacities. This is not just about investing in infrastructure — it’s about strengthening the strategic energy independence and security of our state," Serhiy Chernenko, Chairman of PUMB’s Board, said.