The EBRD and its partners have launched a mechanism to unlock €1.5bn in renewable energy investments in Ukraine, aiming to support 1GW of new capacity and rebuild the country’s generation sector following large-scale war damage.
The Ukraine Renewable Energy Risk Mitigation Mechanism was presented at the Ukraine Recovery Conference in Rome, where the EBRD signed letters of intent with the European Union and the Netherlands.
The mechanism will stabilise revenues for renewable developers and help overcome market volatility, which the EBRD said has deterred investment despite Ukraine’s strong wind and solar potential.
The initiative is backed by the EBRD, the European Commission, IFC, the World Bank, and Ukraine’s Business Advisory Council, with additional input from EUEA, UWEA and Green Deal Ukraïna.
The EU has approved €180m for the scheme under its Ukraine Investment Framework, while the Netherlands plans to provide €12m in grant funding.
Germany, Norway, Sweden and Switzerland are also considering support.
Projects will be selected through competitive auctions, with the EBRD leveraging experience from 17 previous tenders in nine countries totalling 8GW.
The EBRD said the mechanism will be open to all financial institutions to lend to successful projects.
Targeted technical assistance will also help Ukraine establish a long-term national support scheme that does not rely on the new mechanism.
The initiative supports Ukraine’s 2050 energy strategy and forms part of wider EU-backed reform efforts in the energy sector tied to EU accession goals.
The EBRD said the new mechanism would accelerate investment in secure, clean energy and provide developers with confidence in future revenue streams.
It is one of three new programmes supported by the EU and implemented by the EBRD, alongside financial inclusion and SME recovery initiatives.
Since February 2022, the EBRD has committed €7.2bn to Ukraine and is targeting €1.5bn in annual support during the war, with potential to increase further during reconstruction.