The EBRD has partnered with the Goldbeck Solar Group to develop up to 500 MWp of solar PV projects in Ukraine over the next 3 to 5 years. As Ukraine's largest institutional investor, the EBRD prioritizes private sector investments and energy security.
The First Foreign Private Solar Energy Project
Goldbeck Solar — a German firm — intends to develop up to 500 MW of new solar power in Ukraine in collaboration with the EBRD within the next three to five years. The project will be executed through the joint venture Goldbeck Solar Investment Ukraine GmbH. This deal marks the first private renewable energy project involving a foreign investor financed by the EBRD in Ukraine since the war started, and it is also Goldbeck Solar's inaugural investment in Ukraine's energy sector.
The agreement — revealed at the Ukraine Recovery Conference in Berlin — will enhance the EBRD's partnership with the Goldbeck Solar Group, a seasoned German solar energy company with over 20 years in the industry and operations in more than 12 countries. The Goldbeck Solar Group employs over 550 people and has developed more than 3 GW (gigawatts) of solar capacity across 20 countries.
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The creation of Goldbeck Solar Investment Ukraine GmbH is a collaborative initiative designed to bolster Ukraine's domestic electricity generation by developing up to 500 MWp of new renewable energy facilities. This will be the group's first investment and operation in Ukraine, marking a significant milestone for attracting foreign direct investment to Ukraine's energy sector — particularly in terms of reconstruction and green transition efforts.
Minimum of 13 GW of Production Capacity Needed
Ukraine's energy ministry has assessed the impact of recent Russian attacks. By the end of April 2024, approximately 13 GW of production capacity had been damaged or destroyed, thereby leading to rolling blackouts nationwide. Currently, the system faces a persistent deficit in operational electricity generation capacity necessary for maintaining the power grid's integrity and stable operation.
Energy security is one of the EBRD's five key investment priorities in Ukraine, alongside support for essential infrastructure, food security, trade, and the private sector. In response to the attacks on the energy sector, the EBRD is revising its future project pipeline to provide increased support through investments in the energy industry.
As Ukraine’s largest institutional investor, the EBRD has significantly boosted its financial support to the country since Russia initiated its full-scale war in 2022. The Bank has allocated over €4.2 billion to Ukraine since the conflict began. Recently, EBRD shareholders approved a €4 billion paid-in capital increase. This ensures the Bank can maintain its current investment levels during the war and potentially expand its investments once reconstruction efforts commence.
€30 million for New 35 MW Solar Power Park
Modus Group is advancing its renewable energy strategy in Europe by investing €30 million in a new 35 MW solar power park in Ukraine, thus marking its first project in the country. This initiative — undertaken by Green Genius and Modus Energy International (both part of Modus Group) — will be built in the Zhytomyr region, starting in the second half of 2019, and is expected to generate around 45,000 MWh of electricity annually.
Ukraine supports renewable energy through a feed-in tariff scheme, committing to buy electricity directly from solar plants. By Q1 2018, the country's total installed solar capacity reached 841 MW, with significant backing from the European Bank for Reconstruction and Development and the World Bank.
Ruslan Sklepovič, a Modus Group board member noted Ukraine's efforts to align with Western Europe in renewable energy, thereby creating opportunities for experienced companies to invest. The Ukrainian government's promotion of renewable energy fosters a favorable environment for foreign investments, with Modus Group being one of the active investors.
The partnership between the EBRD and Goldbeck Solar to develop 500 MWp of solar PV projects in Ukraine marks a significant step towards enhancing the country's energy security and green transition. Amidst the ongoing conflict and damage to Ukraine's energy infrastructure, this initiative underscores the importance of foreign direct investment in stabilizing and growing Ukraine's renewable energy capacity.