Since the onset of the full-scale war, the European Bank for Reconstruction and Development (EBRD) has invested approximately EUR5 billion in Ukraine, with an estimated EUR2 billion allocated for energy projects, including in the renewable energy sector, reported Olga Yeremina, Associate Director and Senior Banker in the bank's energy department.
"Since the start of the war, the bank has invested around EUR5 billion in Ukraine, of which approximately EUR2 billion has been directed towards energy projects," Yeremina stated during the international ReBuild Ukraine conference in Warsaw, as mentioned in a release by the European-Ukrainian Energy Agency on their website on Tuesday.
According to her, the EBRD is open to new investments in the renewable energy sector in Ukraine, highlighting improvements in the regulatory environment and alignment of reforms with EU requirements. However, challenges remain regarding the bankability of projects, including guaranteed electricity purchase agreements, uncertainty of revenue streams, and instability in the electricity market.
On its part, as noted in the release, Alexander Melnyk, a board member of the EUEA and partner at GOLAW, presented the concept of a Market Risk Guarantee Fund, initiated by the agency in collaboration with the Ukrainian Wind Energy Association.
"The fund, which will be established by international financial institutions, will protect private renewable energy companies from fluctuations in the electricity market by ensuring a minimum electricity price," Melnyk explained.
In Yeremina's view, the Fund could become a key driver of investments, enhancing the resilience of Ukraine's energy system and accelerating the implementation of renewable energy projects.
The release states that under the National Energy and Climate Plan, Ukraine is expected to double its current 10 GW of renewable energy capacity by 2030, with the Market Risk Guarantee Fund playing a supportive role in this process.
As reported in September 2024, the EBRD has provided EUR4.6 billion to the Ukrainian economy since the beginning of Russia's full-scale invasion, including at least EUR1 billion to energy companies "Ukrenergo," "Naftogaz," and "Ukrhydroenergo."
In June, it was reported that the German company GOLDBECK SOLAR Investment and the EBRD are creating a joint venture, GOLDBECK SOLAR Investment Ukraine, to implement projects for the construction of solar power plants in Ukraine with a capacity of 500 MW over the next three to five years.
GOLDBECK SOLAR Investment is set to receive a EUR5 million loan from DEG (Deutsche Investitions-und Entwicklungsgesellschaft) for its commitments in Ukraine through the ImpactConnect program, initiated and funded by the Federal Ministry for Economic Cooperation and Development of Germany (BMZ). Planning for the construction of the first solar park is expected to begin in the fall of 2024.
This is the first EBRD equity agreement in Ukraine's energy sector following Russia's full-scale invasion.