Key facts
- Ukraine's largest private energy company, DTEK, secured an $85 million loan from the U.S. International Development Finance Corporation.
- The loan is for a critical battery storage project and is the DFC's largest wartime transaction.
- DTEK is owned by Ukraine's richest man, Rinat Akhmetov.
- The battery storage system, built with Fluence Energy Inc., has a capacity of 200 megawatts and can power 600,000 Ukrainian homes for two hours.
- The DFC loan will refinance loans from Ukrainian banks and help DTEK build more battery storage with American components.
- The U.S. is investing in projects that exclude Chinese parts to compete with China.
Ukraine's largest private energy company, DTEK, has secured an $85 million loan from the U.S. International Development Finance Corporation (DFC) for a critical battery storage project. Announced on September 16, this marks the DFC's largest wartime transaction, aimed at bolstering Ukraine's energy supply amidst ongoing Russian attacks on its infrastructure.
DTEK, owned by Ukraine's richest man Rinat Akhmetov, is positioning itself as an entry point for foreign investors in the energy sector. CEO Maxim Timchenko expressed hope that the deal with Washington would inspire confidence in wartime investing and potentially attract further foreign capital. He highlighted the DFC's risk assessment and management as a positive signal for private investors.
The loan will primarily refinance existing loans from Ukrainian banks and support DTEK's expansion of battery storage with Fluence Energy Inc. The company opted for American-made components for its battery systems, creating an opportunity for partnership with the DFC. The DFC stated the investment demonstrates its mission to mobilize private-sector capital, strengthen supply chains, and provide alternatives to "malign influence."
Under President Donald Trump, the U.S. has prioritized investments that exclude Chinese components. The U.S.-Ukraine Reconstruction Investment Fund, co-managed by the DFC, recently signed a deal with defense-tech firm Sine Engineering for drone software without Chinese parts.
DTEK is preparing for winter, aiming to restore 4 gigawatts of power generation capacity as Russia is expected to target energy facilities again. The company's thermal plants were hit last winter, and energy workers have been engaged in continuous repairs.