Ukraine - Renewable Energy Risk Mitigation Mechanism – Design and Implementation

Overview
Project Summary Document

TCRS 22093

Status Approved

Location

Ukraine

Business Sector

Energy

Notice Type

State

PSD Disclosed

10 Mar 2026

Project Description

The war on Ukraine has devastated the power sector and has led to a significant deficit in generation capacity. Ukraine entered the 2024/2025 heating season with considerably less operating assets when compared to the pre-war scenario, leaving a deficit in cold periods. Building new generation capacity is therefore a priority for the reconstruction of the Ukrainian economy. The country possesses substantial renewable energy (“RES”) potential, and in line with the Ukraine’s Energy Strategy until 2050, new renewables will be a critical route for meeting the country’s electricity needs now and in the future.

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TCRS 22093

Status Approved

Location

Ukraine

Business Sector

Energy

Notice Type

State

PSD Disclosed

10 Mar 2026

Project Description

Accelerating investment is essential for energy security, economic resilience, and a cleaner energy system. Mobilising private capital is key and there is an urgent need to address investments barriers. However, Ukraine has not been able to rely on support schemes, such as a CfD scheme awarded through auctions, given the absence of a credit-worthy support counterparty. The corporate PPA market is also limited by a few creditworthy offtakers and merchant projects cannot attract financing due to high revenue uncertainty. Yet recent day-ahead market prices suggest renewables could be commercially viable. The real barrier lies in stabilising price, ensure payment, and manage currency risk.

Recent day-ahead-market (DAM) prices have, on average, been higher than the levels that renewable energy projects have needed to be commercially viable in other countries in the region. This suggests that there is a sound underlying commercial basis for RES projects in Ukraine. However, price volatility, and other related risks such as exchange rate risk, prevent investments from proceeding

Within this context, the Bank is developing the REMA Programme in Ukraine. The Programme includes the design and implementation of the Ukraine Renewable Energy Risk Mitigation Mechanism (“URMM” or “Mechanism”), which seeks to address the barriers that are inhibiting investment in renewables in Ukraine. The Mechanism is financially backed by the European Union and other bilateral donors. The URMM is a revenue stabilisation mechanism for renewable energy power plants, targeting price volatility risk to unlock investments into renewable energy sources (and potentially storage). This TC supports the setup, design and implementation of the Mechanism, ensuring its effective delivery, specifically, the arrangements for the implementation of the Mechanism Counterparty (“MC”) and the design and implementation the support scheme for renewable energy projects, including the underlying competitive bidding process.

The Mechanism is expected to support new generation capacity of 1,000 MW of wind and solar capacity (possibly with battery energy storage systems, depending on the findings of the design phase).

Procurement Enquiries

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2025. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the Information Request form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy 2024 or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism page to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

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Ukraine - Renewable Energy Risk Mitigation Mechanism – Design and Implementation

Project Description

Enquiries

Business opportunities

General enquiries

Project Description

Procurement Enquiries

General enquiries

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)