Ukraine has successfully secured a €157 million international financing package to support the growth of private wind power in the country, enhancing its energy security. This financial boost aims to construct and operate wind power plants that will help reduce Ukraine’s reliance on traditional energy sources while providing significant environmental benefits.
Key Details of the Funding
The financing is provided by key international organizations, including the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and the Black Sea Trade and Development Bank (BSTDB). Additional backing comes from the European Union (EU), the UK, and the Climate Investment Funds’ Clean Technology Fund (CTF). The total project cost is estimated at €225 million, with €60 million each from EBRD and IFC, and €37 million from BSTDB. The remaining funding will come from equity invested by GNG Group (OKKO Group in Ukraine), the project’s sponsor.
This project aims to construct wind power plants with a combined capacity of 147MW. Once operational, these plants will generate approximately 380 GWh of electricity annually, significantly contributing to Ukraine’s energy needs. The initiative will also play a pivotal role in reducing carbon dioxide emissions, cutting them by approximately 245,000 tonnes per year.
Ukraine’s Green Power Push Amidst Recovery
This initiative is one of the first major private greenfield power projects in Ukraine since 2022. It demonstrates the country’s commitment to rebuilding and investing in renewable energy, even amidst ongoing challenges. The loans received are backed by EU financial guarantees under the Ukraine Investment Framework’s Hi-Bar guarantee programme, designed to support climate mitigation projects in Ukraine’s energy sector.
The IFC’s financing package also includes €10 million in debt funding from the Clean Technology Fund, which is part of the international community’s efforts to support Ukraine’s transition to cleaner, more sustainable energy sources. The UK’s Foreign, Commonwealth & Development Office has further supported the project with a €4.5 million grant to aid in loan mobilization.
A Milestone for Ukraine’s Energy Future
This wind power development project marks a significant milestone in Ukraine’s recovery and energy transition. It sends a strong message about Ukraine’s readiness for private investment and its ability to meet future energy challenges. According to Ines Rocha, the IFC’s Europe regional director, this project will not only provide essential energy but will also enhance the country’s resilience and contribute to its long-term recovery.
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