The European Bank for Reconstruction and Development (EBRD) has pledged €70 million (US$92 million) to finance renewable energy projects in Ukraine.
Despite recent cuts to Ukraine's solar feed-in tariffs, the EBRD will provide a six-year loan of €3.8 million (US$4.97 million) to local company Rengy Tomaspil to operate a 5MW plant in the Vinnytsya region of south Ukraine.
The financing package, arranged by the EBRD in October 2012, also includes a 10-year loan of €1.8 million from the Clean Technology Fund (CTF). The CTF will provide a further €20 million.
The CTF was established in 2008 to provide middle-income countries with support to adopt renewable and energy efficiency technologies that have high potential for minimising long-term greenhouse gas emissions. The CTF already finances programmes in 15 countries and one region, and is claimed to be the largest multilateral climate finance instrument in operation.
Technical assistance on project preparation, regulatory framework development and strategic environmental review is funded by the Global Environmental Facility (GEF).
As of 31 March the EBRD had committed over €8.63 billion (US$11 billion) through 337 projects in Ukraine.