Ukraine Nuclear Safety Upgrade

Green EBRD Investments in Ukraine

To date the EBRD has invested more than €200 million in renewable energy projects in Ukraine.

Year Project name Country Sector team EBRD ABV (€ millions) Total project value(€ millions) Signed Sustainable Energy Initiative component (€ millions)
2006 Barlinek Ukraine Manufacturing and Services 13 53 1
2008 Kronospan UA Ukraine Manufacturing and Services 16.5 147 2
2011 Hydro Power Plant Rehabilitation Project Ukraine Power and Energy 200 615 200
2012 Eco-Optima Wind Farm Ukraine Power and Energy 9.5 13.3 9.5
2012 Hydropower Small Hydro Power Plants Ukraine Power and Energy 1.3 2 1.3
2012 Porogi Solar Energy Project Ukraine Power and Energy 4.1 5.7 4.1
Total (€ millions) 218

In addition, the Bank has financed nine renewable energy projects under UKEEP(credit line to commercial banks) with a total of €33 million.

Eco-Optima Wind Farm

The Eco-Optima Wind Farm is the EBRD’s first ever investment into wind power generation in Ukraine with a €13.3 million financing package to Eco-Optima, a Ukrainian-Italian joint venture company, which will operate a wind farm in the Staryy Sambir region of western Ukraine.

The loan will be used to construct and operate a wind farm with a total capacity of 12.5 MW. It will consist of five wind turbines and is expected to generate at least 25.5 GWh per year. The wind farm will secure electricity supply to more than 10,000 households and result in a total annual reduction of carbon emissions of 26,000 tonnes.

Ukrainian Sustainable Energy Lending Facility

Eco-Optima Wind Farm was the first project to receive funding under the EBRD’s Ukrainian Sustainable  Energy Lending Facility (USELF), an investment facility of €70 million (€50 million from the EBRD and €20 million from the Clean Technology Fund) designed to provide finance to private local enterprises wishing to invest in renewable energy projects in Ukraine.

Porogi solar energy sub-project

The EBRD is providing a senior secured loan for the development, construction and operation of a 4.5MW solar power plant owned by a local project company Green Agro Service LLC, which will be located in the Vinnitsya region of south Ukraine. Power generation of the plant is estimated at 5,012 MWh/a. Total financing needs for the projects are estimated at €9.5 million, of which the EBRD will contribute €4.1 million.

Small hydropower plants sub-project

The EBRD is providing a senior secured loan to Hydropower LLC for the development, construction and operation of two small hydropower plants on the Bily Cheremosh River in western Ukraine. The small hydropower plants, with a total capacity of 1.6MW, will produce 6,470 MWh annually which will be sold to the grid at the feed-in tariff. Total financing needs are estimated at €3.8 million, of which the EBRD will contribute a €1.3 million senior loan.

Energy efficiency

Transmission

The EBRD has played a major role in improving the efficiency of the electricity transmission and distribution system in Ukraine. This engagement is an important driver of energy efficiency in a country where current losses in the system exceed 13per cent. In this way, over €238 million in financing was channelled into energy efficiency investments in transmission and distribution infrastructure since 2006.

One example in 2010 is an investment of €175 million into the South Ukraine Transmission Networks improving the efficiency of the national power sector and regional power supply reliability. Ultimately, this investment in the transmission grid will also benefit the country’s ability to increase the share of renewable energy in its electricity system.

Industrial energy efficiency

Since 2006, the EBRD has conducted 52 energy audits in the industrial and corporate sector of Ukraine leading to over €564 million of energy efficiency investments. For example, the energy audit programme helped support Astarta, the largest sugar producer in Ukraine, with an US$ 25 million energy efficiency programme and a US$ 12 million investment in a biogas project.

Similarly, the Ukraine Sustainable Energy Financing Facility (UKEEP) credit line financed energy efficiency projects with total investment costs of around €300 million in 60 projects in medium-sized businesses, generating energy savings of more than 1.8 GWh/year since 2006, in sectors such as pulp and paper, agriculture and machine building.

Municipal and residential energy efficiency

The EBRD financed four district heating system upgrades for over €50 millionn with significant demonstration impact for other communities. The Bank also helped bring Ukraine into the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund. The first grant of €5 million under E5P contributed to a €10 million programme in the municipality of Zhytomyr and was signed in February 2012.

The Bank has also developed a strong portfolio in support of municipal transport, road refurbishment and energy improvement of local transportation. Funding seven projects since 2006 for over €100 million in the largest urban agglomerations of Kiev and Lviv, the Bank’s engagement has and will have significant impact on reducing air pollution and emissions.