Ukraine Power Sector to Receive Aid from Allies

  • Ukraine will receive around $1 billion from allies and G7 countries to support its energy sector.
  • EBRD and Germany’s Goldbeck Solar Investment have tied up to jointly add up to 500 MWp of photovoltaic (PV) capacity in Ukraine.

Ukraine’s energy ministry, Herman Halushchenko said Ukraine will receive around $1 billion from allies and G7 countries to support its Power sector, which has been damaged by a series of Russian missile attacks.

The new aid was announced during a conference in Berlin earlier this week, where Ukraine sought to reinvigorate flagging Western support.

The ministry noted that the assistance would include over 70 million euros in new grant contributions to the Ukrainian energy support fund, $500 million in new funding from the United States, 300 million euros in funding from the EBRD and $47 million of additional grant from the World Bank and the EU states.

In another development, the European Bank for Reconstruction and Development (EBRD) and Germany’s Goldbeck Solar Investment have jointly added up to 500 MWp of photovoltaic (PV) capacity in Ukraine.

The deal will see the parties develop, build and operate the projects under a joint venture (JV) partnership, the EIB said.

Under the plan, the proposed PV parks will be commissioned over the next three to five years. EBRD is financing the initiative in a deal that is subject to customary conditions precedent.

Golbeck Solar said separately that the newly founded company Goldbeck Solar Investment Ukraine GmbH has signed a loan agreement to receive EUR 5 million (USD 5.4m) in debt from development bank DEG—Deutsche Investitions—und Entwicklungsgesellschaft. It noted that the JV transaction will be finalised once regulatory approvals are obtained.

Energy security is one of the EBRD’s five investment priorities for Ukraine, along with support for vital infrastructure, food security, trade and the private sector. In light of the attacks on the sector, the EBRD has been reworking its pipeline of future projects to offer more support to the country with investments in the energy industry. 

The EBRD, Ukraine’s largest institutional investor, has significantly increased its finance to Ukraine since Russia launched its full-scale war there in 2022. The Bank has made over €4.2 billion available to Ukraine since the start of the war. 

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