The European Bank for Reconstruction and Development (EBRD) has launched a new investment mechanism aimed at mobilising €1.5 billion in renewable energy projects in Ukraine, targeting the development of 1 gigawatt (GW) of new capacity to support the country’s energy sector recovery.
Unveiled at the Ukraine Recovery Conference in Rome, the Ukraine Renewable Energy Risk Mitigation Mechanism is designed to stabilise revenue for renewable developers and mitigate market volatility, which the EBRD said has discouraged investment despite Ukraine’s strong solar and wind potential.
“This new mechanism will help accelerate investment in secure, clean energy and provide developers with confidence in future revenue streams,” the EBRD said in a statement.
The initiative is supported by the European Commission, the International Finance Corporation (IFC), the World Bank, and Ukraine’s Business Advisory Council. It also includes contributions from the European-Ukrainian Energy Agency (EUEA), the Ukrainian Wind Energy Association (UWEA), and Green Deal Ukraïna.
The European Union has committed €180 million under its Ukraine Investment Framework, while the Netherlands has pledged €12 million in grant funding. Germany, Norway, Sweden, and Switzerland are also evaluating potential support.
The EBRD said projects will be selected through competitive auctions, leveraging its experience from 17 renewable tenders across nine countries totaling 8GW. The mechanism will be accessible to all financial institutions interested in lending to successful projects.
In addition to financing, the programme will provide technical assistance to help Ukraine build a long-term national support scheme that can function independently of the new mechanism.
The initiative aligns with Ukraine’s 2050 energy strategy and broader EU-supported reforms linked to the country’s EU accession ambitions. It is one of three new EU-backed programmes implemented by the EBRD, alongside initiatives for financial inclusion and SME recovery.
Since the start of the full-scale war in February 2022, the EBRD has committed €7.2 billion to Ukraine and is targeting up to €1.5 billion annually in ongoing support, with the potential to scale further during post-war reconstruction.
