EBRD and EU strengthen Ukraine’s energy security with new solar energy generation capacity

• The EBRD provides a US$ 45 million loan to Energy RTB 2 for a solar and storage project
• The loan, supported by a guarantee from the EU’s Ukraine Investment Framework, will finance a 106 MW solar power plant and a co located battery energy storage system in an energy deficient region of Ukraine
• The EBRD and EU to strengthen Ukraine’s energy security and support the green transition

The European Bank for Reconstruction and Development is supporting a new renewable energy investment by Kernel, one of Ukraine’s leading agribusiness groups, to strengthen the country’s energy security and resilience during the ongoing war.

The EBRD is lending US$ 45 million to Energy RTB 2, a wholly owned subsidiary of Kernel, to finance the construction of a 106 MW solar power plant with a co located battery energy storage system in Ukraine.

Once completed, the solar plant is expected to generate around 141 GWh of renewable electricity annually and to cut carbon dioxide emissions by approximately 82,500 tonnes per year. This will add significant new decentralised generation capacity in one of Ukraine’s most energy deficient regions, helping to stabilise the electricity system, reduce the frequency of outages and support economic activity.

At a time when power infrastructure continues to face severe disruption from targeted Russian attacks, decentralised renewable energy projects of this kind help to expand domestic energy generation and strengthen Ukraine’s energy resilience. Over the longer term, the investment also supports Ukraine’s decarbonisation goals by increasing the share of renewable energy in its electricity mix.

Alongside its energy security impact, the investment will also contribute to improving the livelihoods of more than 10,000 Kernel employees, many of whom are demobilised veterans. Kernel will work with the EBRD to implement workplace accessibility measures for staff affected by war related injuries and disabilities, as well as to expand training opportunities for young people by establishing modern engineering and energy laboratories at vocational education institutions.

The EBRD’s funding will be backed by partial financial guarantees from the European Union (EU) provided under the Ukraine Investment Framework through the HI-BAR guarantee programme. HI‑BAR supports investments in next‑generation climate mitigation technologies and in businesses in the energy and energy‑intensive sectors, including new climate technologies, critical raw materials and the rollout of mature technologies such as wind and solar where market barriers persist.

Kernel is among Ukraine’s largest exporters and employers in the food and agribusiness sector, and a longstanding EBRD client. The project marks an important step in the group’s diversification into clean energy and supports the continuity of its operations and workforce under challenging conditions.

The EBRD is Ukraine’s largest institutional investor, having substantially increased its investment in the country since Russia launched a full scale invasion in 2022. Since the start of the war, the Bank has deployed billions of euros to support the real economy, with a focus on energy security, private-sector resilience and critical infrastructure.