EBRD pledges new funds to promote renewable energy projects in Ukraine
Additional €70 million support for the Ukraine Sustainable Energy Lending Facility
The European Bank for Reconstruction and Development (EBRD) has launched Phase II of the Ukraine Sustainable Energy Lending Facility(USELF) designed to promote renewable energy generation in Ukraine, which is increasingly important for the country’s energy security. Additional funds of €70 million from the EBRD and the Clean Technologies Fund (CTF) will bring total amount of the investment facility to €140 million.
Following strong market demand to the USELF funding, both the EBRD and the CTF have decided to double their original contributions of €70 million made in 2009. The Facility will continue providing loans for projects in small hydropower, wind, solar, biomass and biogas sectors to generate electricity to be sold to the national grid at the agreed “green” tariff. In addition to the financial support, the USELF will again provide free technical assistance, provided by the Swedish International Development Cooperation Agency (SIDA) towards projects’ development.
In the context of the Facility the first non-recourse finance for a small-scale renewable energy project in Ukraine took place.
The USELF has strengthened business environment for private sector renewable energy through policy dialogue, institutional capacity building, and projects preparation. As of today, eight renewable energy projects have been supported through USELF. These include biogas, biomass, small hydro, wind or solar energy projects. Three of the projects have already been commissioned.
USELF Phase II, which has a strong pipeline of projects and a life span of up to 3 years, will continue strengthening sustainability of the renewables sector in Ukraine. This is especially important due to the limited availability of funding for such projects from private banks.
The USELF replicates a well-established EBRD model, which already in place in other countries of Eastern Europe, Central Asia and the Caucasus.
USELF is implemented by Fichtner from Germany and IMEPOWER from Ukraine. Additional information on USELF can be obtained from its website: www.uself.com.ua