Translated version of this PSD: Ukrainian
The European Bank for Reconstruction and Development ("EBRD") is launching a new lending facility ("USELF-III") to replace the original Ukraine Sustainable Energy Lending Facility ("USELF"), which is set to expire on 30 June 2018. EBRD launched USELF in 2009 to support and finance the first non-large hydropower renewable energy projects in Ukraine. Since inception, the facility has invested more than EUR 100 million to finance over 150 MW across all renewable energy technologies.
As a result of the development of the renewable energy sector, there is growing interest from major international developers to implement larger RES projects. Therefore, to continue supporting the Ukrainian renewable energy sector, the EBRD, intends to commit an envelope of EUR 250 million from its own resources to finance new private renewable energy projects in Ukraine.
The purpose of the new facility is to help Ukraine achieve its target of 11% gross final electricity consumption from renewable energy sources by 2020 as set in the National Renewable Energy Action Plan approved in October 2014. Despite the significant growth of renewable energy in the recent years, the penetration of renewable energy other than large hydropower remains low, at approximately 1.5% of annual generation.
The facility's transition impact stems from the following two transition qualities:
Green: The facility will fund the development and financing of renewable energy generation assets and contribute to the reduction of CO2 emissions.
Competitive: The facility will foster private ownership of renewables projects in the power generation sector, which is dominated by state controlled nuclear, some thermal power plants and large hydro power facilities, which make up almost 80% of the country's total installed capacity.
In addition to the facility, EBRD will continue supporting Ukraine in the design and implementation of the next phase of its renewable energy support mechanism that is expected to introduce competitive auctions mechanism.
The facility will be available for small, medium, and large private renewable energy developers across all technologies (solar, wind, biomass, biogas and small hydro). It will be used to finance renewable energy projects developed by both local and international developers.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Under the Bank's 2014 Environmental and Social Policy, the Framework itself is not categorised.
The independent consultant retained for the Framework, under terms of reference agreed with the Bank, will categorise each sub-project and carry out a project and sponsor-specific environmental and social due diligence (ESDD) and information disclosure to ensure compliance of that sub-project with the Bank's Performance Requirements (PRs). In the absence of any site specific sensitivities or concerns associated with any future sub-project, it is anticipated that they will be categorised as
B, subject to confirmation during project-specific appraisals. The Facility will consider renewable energy generation projects including small hydro, wind, geothermal, biomass/biogas, and solar that will be associated with E&S impacts that are predicted to be site-specific and to be addressed via implementation of mitigation measures. In addition to the PRs and general Good Industry Practice requirements, the EBRD Environmental and Social Guidance Note for Hydropower Projects and other available on EBRD website E&S appraisal guidance materials will be applied as appropriate.
For each sub-project the consultant will develop a Non-Technical Summary (NTS), Stakeholder Engagement Plan (SEP) and Environmental and Social Action Plan (ESAP), as appropriate, based on the ESDD findings. The Framework's PSD page will contain brief summary of each sub-project and links to the key project documents published on the USELF website to facilitate information disclosure and public consultation.
Technical Cooperation funds are currently being sought to help provide assistance to smaller local developers to prepare projects in Ukraine. It is envisioned that a consultancy team will support smaller developers with project permitting and licensing, commercial negotiations, environmental and social due diligence and project management. This will ensure that projects follow EBRD's and international standards and best corporate governance practices.
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Public Information Policy (PIP)
The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP