During the Ukraine Recovery Conference (URC2025), held on 10–11 July 2025 in Rome, Italy, a letter of intent was signed on the creation of the Ukraine Renewable Energy Risk Mitigation Mechanism (URMM), which will be able to unlock €1.5 billion of investment in new renewables capacity at the level of 1 GW and offset the risk of the guaranteed purchase of electricity.
What does this mean?
After the large-scale destruction of Ukraine’s power system as a result of Russian attacks, the country is in critical need of new generating capacity. The URMM is intended to stimulate investment in renewables by giving projects revenue stability and reducing risks for investors. The mechanism guarantees a minimum electricity price for each private project, which gives banks confidence in the return of the invested funds.
Who has joined the initiative?
▪ The EBRD – responsible for structuring and channelling donor funds
▪ The European Union (through the Ukraine Investment Framework – UIF)
▪ The Government of the Netherlands
▪ IFC, the World Bank, the Business Advisory Council of the Ukraine Donor Platform
▪ Energy associations: UWEA, EUEA and the Green Deal Ukraïna project
The first financial contributions:
- €180 million from the EU
- €12 million in the form of grants from the Netherlands
Countries such as Germany, Norway, Sweden and Switzerland are also considering the possibility of joining.
What is the operating principle?
Participants will be selected through transparent auctions. The introduction of the mechanism will contribute to the predictability of revenues for producers of “green” energy, thereby reducing the barriers to investment in new projects. It also provides for the provision of targeted technical assistance to the Government of Ukraine to create a national renewables support scheme without the need for external mechanisms in the future.
Why is this important?
Ukraine has great potential for the development of renewables, but market volatility has been holding investors back. The URMM can change this – by providing trust and a new investment impulse.
This is also part of a broader package of reforms to bring Ukraine closer to EU standards within the framework of European integration.
“This platform is a testament to the power of joint advocacy”, – noted Andriy Konechenkov, Chairman of the UWEA Board. “By reducing financial risks, we open up opportunities for renewable energy to contribute to the reconstruction of Ukraine and its long-term sustainability.”
This platform is also another step towards achieving the goals of Ukraine’s National Energy and Climate Plan (NECP) up to 2030, which defines renewable energy as the cornerstone of the country’s energy future.
We sincerely thank all the partners behind this initiative for their trust in the Ukrainian market, their strategic vision and their readiness to act. Today’s decisions are shaping the energy independence of tomorrow’s Ukraine.
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Other EBRD initiatives announced at the URC:
- The financial inclusion programme (UIF): €200 million in guarantees → up to €2 billion in loans for SMEs
- The SME recovery programme: €45 million → €135 million in financing for businesses
The EBRD has already invested €7.2 billion in Ukraine since the start of the full-scale war and has approved a capital increase of €4 billion in order to continue supporting the country to the tune of €1.5 billion annually, with the potential to increase financing at the stage of post-war reconstruction.
Ukraine is recovering – through investment, reforms and clean energy. The time has come to build an energy future free from threats and dependencies.
