Renewable energy financing facility in Ukraine
The objective of the Renewable Energy Program is to help demonstrate that clean energy projects can be successful in Ukraine while helping to reduce risks for future investors and also addressing some of the early entrant barriers related to establishing precedents and reducing costs.
This program has been allocated US$75 million of Clean Technology Fund (CTF) resources and consists of three projects, two of them led by the European Bank for Reconstruction and Development (EBRD) and one by the International Finance corporation (IFC). The EBRD Ukraine Sustainable Energy Lending Facility (USELF) is aimed at providing finance to project developers that who equity and cannot raise capital on a commercial basis for all renewable technologies and project volumes ranging from US$1 million to US$150 million.
Another EBRD project is aimed at supporting the expansion of an existing Novoazovsky Wind Farm by 34 MW to 59 MW. The focus of the IFC program is to support a 50-70 MW wind project thought its Ukraine Renewable Acceleration Energy Project (U-REAP). This project is expected to require €24-25 million (approx. US$35 million) of CTF funds, leveraged by up to €30 million (approx. US$42 million) IFC funds and up to €66 million (approx. US$92 million) private sector funds. Another US$1 million is expected to be used for advisory work related to developing the renewable energy sector.