The Facility will consider all forms of renewable energy (RE) generation project including hydro, wind, biomass and solar. Projects for the production and distribution of biomass fuel (such as wood pellets) may also be considered but on the basis of corporate loans rather than project finance.
EUR 100 million in the form of loans is provided to private companies to develop RE projects. EUR 40 million in concessional co-financing from CTF will cover up to 20 percent of the facility volume. Each individual transaction under the Facility will be subject to the Bank’s Environmental and Social Policy and required to comply with the Bank’s Performance Requirements. Each subproject will be subject to an Environmental and Social Due Diligence (ESDD), and categorized on a project-by-project basis, taking into account cumulative issues as relevant.
ESDD has been conducted on each project by the Project Consultant, following a standard format which measures project performance against the Bank's Performance Requirements (PRs) as well as National and EU environmental standards. All Projects to date have been found to be compliant with the Bank’s PRs. Borrowers will be required to comply with the Bank's Performance Requirements and provide the Bank with an annual report on environmental, health and safety issues.
Objectives and Outputs:
The Facility aims to provide financing and technical assistance for the realization of early RE projects, which will have transition and demonstration effects. Policy dialogue and institutional capacity building on RE will be encouraged and supported, in order to develop a favorable environment for wider implementation of renewable projects in Ukraine. The targeted clients are Private companies developing RE projects.
Framework for RE market will be supported through regulatory reforms and capacity building. In Ukraine, an increasing share of renewable projects cost has to be sourced domestically to be eligible for feed-in tariffs (FIT). The Energy Law sets the minimum local share content requirement (LSC) as a condition for an RE project to be eligible for the FIT. The Energy Law requires 30 or 50 percent of local content depending on project’s commissioning date. The removal of the LSC requirement for RE projects will be a key priority of the policy dialogue associated with the replenishment of the facility. The World Bank is also working on policy dialogue with the Ukrainian authorities on adoption of new legislation to support reform of the Wholesale Energy Market, as well as in building the necessary institutional capacity for implementation both at the project level and within the enabling institutions such as the electricity regulator and UkrEnergo, the electricity transmission Company.
Transition impact will be achieved through demonstration of new replicable behavior and activities. The Facility will support development and financing of the privately owned RE projects which are still at a relatively early stage of development in Ukraine. The Facility will continue building and transferring expertise related to RE project development to Ukrainian companies. The Facility will be supported by a comprehensive technical assistance program providing both institutional and project support.
This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.
In the News:
EBRD supports renewable energy project in Southern Ukraine (EBRD, September 24, 2013)
ET Solutions completes 4.2MW Ukraine PV plant (PVTech, September 27, 2013)
ET Solar and Sunelectra Global Commissioned 4.2 MW PV Projects in Ukraine Financed by EBRD (PR Newswire, September 27, 2013)
USELF boosts Ukraine's renewable energy sector (GEF, February 14, 2014)
Project Document | Proposed Decision
Approved on October 13, 2010 (Approved Decision)
USD 27.6 million
Notice of Change to Decision (May 25, 2011)