EBRD finances biogas project in Ukraine
The European Bank for Reconstruction and Development is organizing a financing program of up to €7.1 million ($9.7 million) to construct and bring into operation a 2.25 MW biogas plant, adjacent to Rokytne sugar mill in the Kiev region. The plant, which will be the largest facility of this type in the country, will generate electricity to be sold to the national grid at the agreed “green” tariff.
Through this project the bank will continue to promote renewable energy generation in Ukraine, which is increasingly important for the country’s energy security. The financing package arranged by the bank includes a 10-year EBRD loan of up to €5.07 million and a 15-year loan of up to €2.03 million from the Clean Technology Fund.
The financing for the Rokytne biogas project is part of the Ukraine Sustainable Energy Lending Facility – an investment facility of €140 million (€100 million from the EBRD and €40 million from the CTF) designed to provide finance to private local enterprises wishing to invest in small renewable energy projects in Ukraine. The strategic environmental assessment for the Rokytne project is funded by the Global Environment Facility.
The CTF was established in 2008 to provide middle-income countries with support for the adoption of renewable energy and energy efficiency technologies that have high potential for minimizing greenhouse gas emissions in the long term. The CTF already finances programs in 15 countries and one region. It is the largest multilateral climate finance instrument in operation.
The deal is part of the EBRD’s operational response in Ukraine aimed at supporting the real sector of the domestic economy. The bank expects to be able to invest around €1 billion a year in the country, with the annual level of investment since February 2014 now standing at over €500 million.
The EBRD is the largest financial investor in Ukraine. As of 1 May 2014 the Bank had committed €8.4 billion (US$ 11.5 billion) through 327 projects in the country.