EBRD to provide €1bn in support for Ukraine’s energy sector in 2025

The European Bank for Reconstruction and Development (EBRD) plans to provide €1bn ($1.1bn) in aid in 2025 to Ukraine's war-damaged energy sector and to enhance the country’s energy resilience, according to its vice-president Matteo Patrone, as reported by Reuters.

Ukraine's energy infrastructure has suffered extensive damage due to missile and drone strikes since 2022 during the conflict with Russia.

These attacks have impacted generation and transmission facilities, leading to blackouts.

Following intensified Russian attacks in March 2024, Ukraine lost half its available generation capacity.

The country managed to endure the winter months of 2024/25 due to mild weather, swift repairs and support from Western allies in the form of funding and equipment.

The EBRD, a key lender to Ukraine, plans to prioritise support for the energy sector in 2025, according to Patrone, who stated: "Energy security is one of the most important, with €2bn deployed so far.

“But with the activities that we are about to finalise, and also the pipeline we have, in particular in the public sector, these €2bn will increase substantially in 2025. It (will be) about €3bn, probably, by the end of the year.”

Ukraine is focusing on decentralisation in its rebuilding efforts, incorporating more solar and wind energy and small, modular gas turbines.

Patrone mentioned that renewables currently account for 10% of Ukraine's energy mix, and the EBRD is exploring projects to expand this share.

Ukraine's Prime Minister Denys Shmyhal has noted that the EBRD is collaborating with the state energy company Naftogaz on a financing package to secure natural gas for the upcoming winter.

The EBRD has also announced a sovereign loan of €45.75m ($49.77m) to Albania’s state-owned energy distributor, Operatori i Shpërndarjes së Energjisë Elektrike (OSHEE).

The loan will be used to refinance €81.5m in short-term debt that OSHEE secured in late 2021 to manage the cost of electricity imports during the spike in global energy prices.

"EBRD to provide €1bn in support for Ukraine’s energy sector in 2025" was originally created and published by Power Technology, a GlobalData owned brand.

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