Part 1. Installation of Battery Energy Storage System (“BESS”) with Solar Photovoltaic (“PV”), Establishment of Energy Management System and Supervision Advice 1.1. Installation of: (i) BESS at the Selected Hydropower Plants to provide ancillary services to the grid; (ii) solar photovoltaic systems to supply electricity to the battery energy storage systems and provide additional power; and (iii) an energy management system. 1.2. Provision of Project implementation support and financing of supervision advisory services, including (a) undertaking (i) supervision, management, coordination, and (ii) Project audits; and (b) conducting knowledge exchange to strengthen the Borrower’s capacity for advanced energy management. Part 2. Technical Assistance Provision of technical assistance to: (i) develop technical procedures for decommissioning and recycling of batteries; (ii) conduct a gender assessment of the Borrower’s human resources policies and practices to identify factors affecting gender diversity and inclusion, including specific recommendations; (iii) oversee, monitor, and implement environmental and social management tasks under the Project, including, inter alia, the establishment and maintenance of a grievance mechanism and public engagement activities; and (iv) strengthen the Borrower’s capacity in operation and maintenance best practices, safety measures, and battery recycling through training sessions, workshops, and study tours. Part 3. Emergency Response Financing the procurement of (a) unit transformers with monitoring systems for various Selected Hydropower Plants; (b) other hydropower equipment, including turbines and generators for various Selected Hydropower Plants; and (c) rehabilitation works for the Dniprovska Hydropower Plant-2.

(i) creation of new additional highly maneuverable and fast-acting reserves for the provision of auxiliary services of RPC, ARPC, etc. in the auxiliary services market of Ukraine and for balancing the Unified Energy System of Ukraine in the balancing market; (ii) fulfillment of the requirements of the Unified Energy System of Ukraine and ENTSO-E regarding the availability of RPC and ARPC reserves in the Unified Energy System of Ukraine under the conditions of the operation of the Unified Energy System of Ukraine in parallel mode with ENTSO-E; (iii) ensuring reliable and uninterrupted operation of hydro-generating equipment and power output facilities of PrJSC “Ukrhydroenergo” by replacing (restoring) equipment damaged as a result of armed attacks by the Russian Federation, creating a reserve of the necessary capacity in case of possible damage to the equipment in the future as a result of the ongoing armed aggression of the Russian Federation. (iv) increasing the efficiency of the work of PrJSC “Ukrhydroenergo” and strengthening its financial position by increasing the company’s income from the sale of balancing electricity in the balancing market and auxiliary services in the auxiliary services market. (v) promoting the decarbonization of the Ukrainian Unified Energy System by creating conditions for regulating the operating modes of the Ukrainian Unified Energy System when connecting to the electricity grids a growing number of renewable energy power plants (RES) with difficult-to-predict load (solar (SPP) and wind (WPP) power plants), as this requires additional sources of capacity regulation (flexibility) in the Ukrainian Unified Energy System (including at the expense of RPP and ARPP, on the balancing market), which will minimize the need to reduce the volume of electricity production from RES and nuclear generation to maintain the balance between demand and supply in the Ukrainian Unified Energy System; (vi) promoting the implementation of Ukraine's strategic goals and international obligations in the field of reducing greenhouse gas emissions and combating climate change by maintaining the capacity of existing (HES-PSPP) and installing new environmentally friendly energy sources (UZE and SPP), promoting the development of RES and replacing coal-fired TPPs in the country's energy balance.