The European Bank for Reconstruction and Development (EBRD), with support from the European Union and the Netherlands, is developing a mechanism to mobilize €1.5 billion in investments aimed at adding 1 GW of new renewable energy capacity in Ukraine.
Unveiled at the recent Ukraine Recovery Conference in Rome, the Ukraine Renewable Energy Risk Mitigation Mechanism (URMM) is backed by key donors, including the EU and the Netherlands, with the EBRD leading its design and implementation.
The URMM will encourage more renewable energy investments in Ukraine by stabilizing future revenues and making them more predictable for developers. This will reduce financial risk, making it easier for banks and investors to support clean energy projects and encourage further investments in Ukraine’s renewables sector.
According to the bank, this mechanism will be open to all financial institutions to lend to eligible projects that will be selected through competitive auctions.
The EU has already approved €180 million for the mechanism under its Ukraine Investment Framework (UIF), while the Netherlands aims to provide grants of €12 million. Further support is expected from Germany, Norway, Sweden, and Switzerland.
Ukraine has suffered massive damage to its power generation infrastructure since the Russian invasion, leading to a significant deficit in its generation capacity.
In a recent interview with a local television channel, Vladyslav Sokolovskyi, Chairman of the Board of the Solar Energy Association of Ukraine (ASEU), revealed that Ukraine’s energy system has lost over 22 GW of capacity. In this context, residential solar systems and self-consumption PV installations are playing a crucial role in strengthening energy resilience.
In 2024, the country added more than 800 MW of solar capacity for self-consumption (see Ukraine Solar Market Expanded By Up To 850 MW In 2024).
Last year, the EBRD launched a joint venture with GOLDBECK SOLAR to develop up to 500 MW solar PV capacity in the country (see Renewable Energy Joint Venture Launched In Ukraine).
