EBRD to Invest €1 Billion in Ukraine's Energy Sector by 2025
KYIV (Reuters) - The European Bank for Reconstruction and Development plans to provide about 1 billion euros ($1.1 billion) this year to help Ukraine rebuild its war-damaged power sector and improve energy resilience, EBRD vice president Matteo Patrone said.
During more than three years of war, Russia has hammered Ukraine's energy infrastructure with missile and drone strikes, damaging generation and transmission facilities and causing blackouts.
The EBRD is one of Ukraine's key lenders, and supporting the energy sector will remain a priority this year, Patrone said in remarks released for publication on Wednesday.
"... Energy security one is the most important, with 2 billion euros deployed so far," Patrone told reporters.
"But with the activities that we are about to finalise, and also the pipeline we have, in particular, in the public sector, these 2 billion euros will increase substantially in 2025. It (will be) about 3 billion, probably, by the end of the year."
As Russia stepped up its attacks in March 2024, Ukraine lost half its available generation capacity, officials have said.
But it managed to get through the winter months thanks to mild weather, fast repairs and a flow of funding and equipment from Western allies.
Ukraine is also trying to decentralise as it rebuilds and modernises, with more solar and wind energy and small, modular gas turbines.
Patrone said renewables accounted for about 10% of Ukraine's energy mix and the EBRD was looking at projects to expand this share.
Prime Minister Denys Shmyhal also said the EBRD was working with the state energy company Naftogaz on a financing package to help it purchase natural gas for the next winter.
The EBRD has deployed a total of 6.4 billion euros in Ukraine since the start of Russia's full-scale invasion in February 2022.
($1 = 0.9240 euros)
(Reporting by Olena Harmash)
