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Solar Energy Project in Ukraine receives EBRD funding

PROGRAM / PROJECT NEWS 

28 April 2013 – London, UK – The European Bank for Reconstruction and Development (EBRD) has announced approval of financing for the development, construction and operation of a 5MW solar power plant, to be operated by local company Rengy Tomashpil, in the Vinnitsya region of south Ukraine. The financing package arranged by the Bank will include a 6-year EBRD loan of €3.8 million and a 10-year loan of €1.8 million from the Clean Technology Fund (CTF).

solor-powerThe EBRD supports renewable energy projects in Ukraine aimed at reducing the environmental impact of traditional power generation. Renewable energy is yet to establish itself as a major contributor to Ukraine’s energy security but it is starting to play a greater role in its sustainable energy supply.

The new solar energy project is part of the EBRD Ukraine Sustainable Energy Lending Facility (USELF) an investment facility of €70 million (€50 million from the EBRD and €20 million from the CTF) designed to provide finance to private local enterprises wishing to invest in renewable energy projects in Ukraine. Technical assistance on projects preparation, regulatory framework development and strategic environmental review is funded by the Global Environmental Facility (GEF).

The CTF was established in 2008 to provide middle-income countries with support to adopt renewable and energy efficiency technologies that have high potential for minimising long-term greenhouse gas emissions. The CTF already finances programmes in 15 countries and one region, and is the largest multilateral climate finance instrument in operation.

The EBRD is the largest financial investor in Ukraine. As of 31 March 2013 the Bank had committed over EUR 8.63 billion (USD 11 billion) through 337 projects in Ukraine.  For more information about EBRD projects in Ukraine, go to http://www.ebrd.com/pages/country/ukraine.shtml.

The European Bank for Reconstruction and Development (EBRD), established in 1991 to nurture the private sector in Central and Eastern Europe and throughout Central Asia, uses investment to help build market economies and democracies. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses.  The EBRD invested €8.7 billion in 388 individual projects in 2012.  For more information about the bank, visit http://www.ebrd.com/index.htm

Based on EBRD news story by Anton Usov

Source: EBRD