EBRD, EU and partners announce plan to boost renewables in Ukraine

The European Bank for Reconstruction and Development (EBRD), the European Commission and partners are planning a key mechanism to accelerate renewable energy investments in Ukraine, which will deliver secure and clean energy. 

The Ukraine Renewable Energy Risk Mitigation Mechanism (URMM) was announced at the Ukraine Recovery Conference (URC) in Rome when the EBRD, which is structuring and channeling donor funds to the mechanism, signed letters of intent with key donors – the European Union and The Netherlands.

This initiative brings together the expertise of the EBRD, key donors, development partners (notably the International Finance Corporation (IFC) and the World Bank), and the Ukraine Donor Platform’s Business Advisory Council. Inputs from the EUEA (European Ukrainian Energy Agency), UWEA (Ukrainian Wind Energy Agency) and Green Deal Ukraïna also helped to shape the initiative.

Once implemented, the mechanism is expected to support 1 GW of new renewable energy capacity, potentially mobilising €1.5 billion in investments.

According to a press release by EBRD, fundraising among donors has already started and will accelerate. The European Union has approved €180 million to support the mechanism under its Ukraine Investment Framework (UIF) and The Netherlands aims to provide grants of €12 million. Germany, Norway, Sweden, and Switzerland are also considering supporting the initiative.

“By giving generators and investors greater confidence in future revenues, this mechanism is expected to bring a wave of investments in renewables to Ukraine. The mechanism will be open to all financial institutions to lend to the selected projects,” the EBRD said. 

Alongside the mechanism, targeted technical assistance will be provided to the Ukrainian government that will help set up an effective national support scheme to enable investments in new renewable energy generation capacity without the need for the URMM. 

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Press release