The European Bank for Reconstruction and Development (EBRD) is mobilizing resources to support the development and operation of a new wind farm located near the town of Staryi Sambir in the Lviv region of western Ukraine.

Through this latest sustainable energy initiative the Bank will continue to promote renewable energy generation in Ukraine, which is increasingly important for the country’s energy security.

The Karpatsky wind farm, with an installed capacity of 20.7MW, will operate six wind turbines and will improve energy supply in the region. The financing package of €23.1 million arranged by the Bank consists of €8.6 million from the EBRD, €4 million from the Climate Investment Funds’ Clean Technology Fund (CTF), a senior loan of €5.5 million from the Investment Fund for Developing Countries (IFU) and a senior loan of €5 million from the Nordic Environment Finance Corporation (NEFCO).

The project is supported through the Bank’s Ukraine Sustainable Energy Lending Facility (USELF) designed to provide finance to private local enterprises wishing to invest in small renewable energy projects in Ukraine. Implementation of USELF is supported by technical cooperation funds provided by the Global Environment Facility (GEF), Sweden and Japan.

Sevki Acuner, EBRD Director for Ukraine, said: “This is a very important project for the region and for the country. It shows how big the renewable energy potential is in Ukraine. It also paves the way for similar private investments across the country.”

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 minimising greenhouse gas emissions in the long term. The CTF already finances programmes in 15 countries and one region. It is the largest multilateral climate finance instrument in operation.

IFU is an independent fund owned by the government of Denmark which offers advisory services and risk capital to Danish companies wishing to do business in developing countries and emerging markets.

NEFCO is an international financial institution established by the Nordic governments in 1990, after the collapse of the Soviet Union, to provide green financing and support the Nordic countries’ objective of increasing environmental awareness in eastern and central Europe by financing projects that reduce greenhouse gas emissions to the environment. In 2015, NEFCO approved 458 projects to a total value of €459 million.

The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost €12 billion through 369 projects since the start of its operations in the country in 1993.