By Abdullahi Lukman
The European Bank for Reconstruction and Development (EBRD) has launched the Ukraine Renewable Energy Risk Mitigation Mechanism to address the urgent need for new power generation in Ukraine, following severe damage to the country’s electricity infrastructure from Russian attacks.
Announced during the Ukraine Recovery Conference in Rome, the initiative aims to support 1 GW of new renewable energy capacity and mobilise up to €1.5 billion ($1.75 billion) in investment.
The European Union has already pledged €180 million under its Ukraine Investment Framework, while the Netherlands plans to contribute €12 million. Other donors including Germany, Norway, Sweden, and Switzerland are also considering support.
The mechanism is designed to stabilise revenues for renewable developers and reduce investment risks caused by market volatility. Projects will be selected through competitive auctions, leveraging EBRD’s experience from 17 renewable tenders in nine countries totaling 8 GW.
The programme will be open to all financial institutions to fund winning projects.
Ukraine’s Energy Strategy to 2050 highlights renewables as a key priority. The mechanism is jointly supported by the EBRD, European Commission, IFC, World Bank, and Ukraine’s Business Advisory Council, with additional input from local and regional energy associations.
This mechanism is part of a broader package of three EU-supported initiatives implemented by the EBRD, including a €200 million guarantee facility for SME lending and a €45 million SME Recovery Programme aiming to unlock €135 million in business financing.
