EBRD supports renewable energy project in southern Ukraine

By Anton Usov

The European Bank for Reconstruction and Development (EBRD) is actively pursuing its strategy of making renewable power generation in Ukraine a reliable source of energy supply. The Bank is providing a financing package of € 5.4 million to Teplodar PiVi LLC in the Odessa region for the development, construction and operation of a 4.2 MW solar power plant. The financing arranged by the Bank will include an 8-year EBRD loan of €3.9 million and a 15-year loan of €1.5 million from the Clean Technology Fund (CTF).

Upon completion, the solar power plant will be connected to the grid and will benefit from Ukraine’s green tariff law, under which the government guarantees the purchase at a fixed rate until 2030 of all electricity produced by local renewable power plants.

The new solar energy project is part of the EBRD Ukraine Sustainable Energy Lending Facility (USELF) an investment programme of €70 million (€50 million from the EBRD and €20 million from the CTF) designed to provide finance to private local enterprises wishing to invest in renewable energy projects in Ukraine. Technical assistance for project preparation and for regulatory and environmental assessment is funded by the Global Environmental Facility (GEF).

The CTF was established in 2008 to support middle-income countries with their adoption of renewable and energy efficiency technologies that have high potential to minimise long-term greenhouse gas emissions. The fund already finances programmes in 15 countries and one region, and is the largest multilateral climate-finance instrument in operation.

The EBRD is the largest financial investor in Ukraine. As of 1 August 2013 the Bank had committed over €8.55 billion (US$ 11.4 billion) across 327 projects in Ukraine.