Ukraine is starting to bury its strategic energy infrastructure in a long-term effort to protect the power grid from Russia’s repeated attacks. Authorities in Kiev have already secured an electric station in an underground concrete bunker, and a second one is nearing completion, as reported by Kiev Independent.
Vitaliy Zaicenko, the CEO of Ukrenergo, the national operator of the energy transmission network, told the Ukrainian publication that the project is designed as a structural solution to increase the system’s resilience, rather than a quick intervention in the current energy crisis.
An investment of tens of millions for each station
However, the costs are enormous. Moving each station underground requires investments of tens of millions of dollars, and Ukraine has nearly 100 key stations in the system operated by Ukrenergo. Kiev cannot afford to finance such a program alone.
"Moving stations underground can be one of the important elements of energy security and resilience in the future. But it will take years and cost millions of euros," said Oleksandr Harchenko, Executive Director of the Energy Industry Research Center in Kiev.
The project is all the more urgent as electric stations represent the vulnerable link of the system. By destroying equipment at these distribution points, Russia can block the flow of electricity from power plants to the population and industry, causing widespread power outages.
The West produces, but the East remains dependent on the grid
Russian attacks have severely affected production capacities in central, southern, and eastern Ukraine. These regions increasingly rely on energy generated in the western part of the country. However, without functional stations, electricity cannot be transported to the most exposed areas.
The underground bunkers are intended to protect critical equipment from missile and drone strikes. However, to continue the project, Ukrenergo needs external funding.
Debts, restructuring, and negotiations with the EIB
Before accessing new loans, the company must finalize its debt restructuring. Russia's large-scale invasion pushed Ukrenergo into insolvency, and last April, the operator had to restructure "green" bonds worth $825 million.
After completing this process, the company intends to seek financial support from the European Investment Bank, which already granted an €86 million loan in 2024 for anti-drone protection systems.
The EIB has not yet confirmed a new package dedicated to underground stations, but stated that it "continues to explore ways to support Ukraine's efforts to protect critical energy infrastructure."
$300 million for concrete shields
Since 2023, Ukrenergo has been fortifying existing energy facilities. By the end of last year, over half of the transformers had been covered with concrete shields, in a project estimated at around $300 million, according to NV Ukraine publication.
Moving stations underground represents the next level of protection – more costly, more complex, but considered essential in a war where energy has become one of the main strategic targets.