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US will provide Ukraine with $522 million to strengthen energy system

Sep 25, 2023

Ukraine and the US have signed a memorandum of understanding on cooperation to ensure the sustainability of our country's energy system, which includes $522 million to strengthen it, of which $100 million is subject to certain conditions.

This is reported with reference to the memorandum published on the website of the US Embassy in Ukraine.


The agreement provides for cooperation to improve the resilience of Ukraine's energy system, in particular by restoring critical infrastructure, introducing distributed generation, reforming the energy sector, and facilitating Ukraine's post-war transition to a low-carbon, competitive, and EU-integrated energy economy.

The agreement provides for the following areas:

  • Restoration of Ukraine’s damaged electricity, heating, and gas infrastructure, including the purchase and installation of main lines autotransformers;
  • Strengthening the resilience of the power system through increased adequacy and flexibility, including improvement of resiliency to power disruptions in essential services sectors like heating, water, sanitation, transport, telecommunications, and health;
  • Installation of distributed gas generation (including CCGT turbines of USA production);
  • Expansion of distributed generation from renewable and other energy sources in the power and heat sectors;
  • Strengthening of Ukraine’s physical interconnection with European gas and electricity networks.

The memorandum also provides for cooperation in the field of civilian nuclear energy and the protection of Ukraine's most important energy infrastructure, including physical anti-drone and anti-missile defense, cybersecurity, etc.

The agreement includes $522 million to strengthen Ukraine's energy system, of which $100 million is subject to certain conditions.

The additional $100 million is conditioned on the Ukrainian government taking a number of steps. In particular, the Cabinet of Ministers has to approve a new charter and establish the Supervisory Board of the Ukrainian GTS Operator LLC by October 30, launch a competition for the election of members of the Supervisory Board of NNEGC Energoatom by November 30, and establish Energoatom PJSC by December 31.

In addition, the National Energy and Utilities Regulatory Commission must establish the procedure, scope, degree, and frequency of submission of information on wholesale energy trade related to REMIT legislation by April 1, 2024.

Author – Anastasiya Glotova, 25/09/2023

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