The European Bank for Reconstruction and Development (EBRD) is considering the possibility of providing additional financing in the amount of €200 million for the development of renewable energy sources in Ukraine. This was reported by BusinessCensor with reference to Interfax-Ukraine.
The board of directors plans to consider this project on October 30.
The third renewable renewable energy financing program (Ukraine Sustainable Energy Lending Facility, USELF-III) approved in July 2018, is expected to be fully implemented by the end of 2019.
“The EBRD intends to allocate new funds to finance private renewable energy projects under the current system of stimulating feed-in tariffs. The planned replenishment will allow the bank to build on the success of USELF-III and maintain momentum in the transition from the existing mechanism of preferential tariffs to a support system based on competitive auctions”, the report said.
Since 2009, the EBRD has been supporting the development of renewable energy in Ukraine as part of the USELF program. The program aims to assist the state in achieving the share of renewablesin the country's total energy consumption at 11% by 2020.
At the end of 2018, the senior banker of the EBRD’s Department of Electricity, Olha Yeryomina, said that the organization temporarily, until the introduction of new mechanisms to stimulate the development of alternative energy in Ukraine, stops financing new renewable energy projects.
In April 2019, the Verkhovna Rada adopted Law 2712-VIII, which introduced “green” auctions from 2020 and secured the mandatory participation of investors in solar power plants (SPPs) with a capacity of more than 1 MW and wind power plants of more than 5 MW (or one turbine ) The law replaces the state support system for alternative energy facilities in the form of a feed-in tariff with a system within which the state will receive support from the investor who has offered at the auction the lowest tariff for electricity produced by the facility.
According to the National Energy and Utilities Regulatory Commission data, at the end of the third quarter of 2019, the total capacity of the commissioned renewable energy facilities was 4.591 GW, and the share of renewable energy sources in the production structure was 4.9%.