New Ukraine Energy Support Fund contribution from Norway targets winter preparedness and private investment 

The Fund announced on 21 July that Norway has made a new contribution to the Ukraine Energy Support Fund, managed by the EU-co-chaired Energy Community Secretariat.

Norway’s €45 million contribution brings its total lifetime support to the Ukraine Energy Support Fund to roughly €209 million.

The contribution is significant for its dual purpose. The majority will strengthen the Fund’s established procurement pipeline, ensuring energy companies have the critical equipment and services needed to restore damaged infrastructure and prepare for a fifth winter at war. 

Ahead of last month’s Ukraine Recovery Conference, the Ministry of Energy of Ukraine, the European Commission and the Energy Community Secretariat warned that an additional €650 million was needed to secure the country’s winter preparedness. With Norway’s latest contribution, €472 million still needs to be mobilised.

“The scale of damage to Ukraine’s energy infrastructure requires the rapid deployment of new, flexible generation capacity, yet war-related risks have continued to deter private investment,” said Energy Community Secretariat Director Artur Lorkowski. “Norway’s contribution lays the foundations for a new model of recovery—one that mobilises private capital alongside public and donor financing.”

A second, pioneering component of Norway’s contribution – around €2 million – will finance the pilot phase of a new de-risking mechanism. The mechanism is designed to unlock private investment in Ukraine’s energy sector, multiplying the impact of international donor support. It reduces risks and, hence, investment barriers through two complementary components. 

First, it provides partial loan guarantees to commercial banks financing projects awarded through special long-term capacity auctions for ancillary services organised by NPC Ukrenergo, Ukraine’s electricity transmission system operator. Second, it funds physical protection measures to reduce the risk of war-related damage to new power generation facilities. 

In agreement with the European Commission and the Ministry of Energy of Ukraine, the Ukraine Energy Support Fund was established to counteract the impact of the Russian attacks targeting critical energy infrastructure. The Fund enables governments, international financial institutions, international organisations, and corporate donors to provide financial support to the Ukrainian energy sector’s efforts to repair that damage and keep functioning. 

Contributions to the Fund are used to finance the most urgent needs of Ukrainian energy companies such as equipment, spare parts and other technical items, as well as fuels and services needed to repair infrastructure and maintain energy and heat supply in Ukraine.

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Press release