On 19 February 2025, UWEA, together with Green Deal Ukraïna, the EUEA and IMEPOWER, held a closed online discussion dedicated to attracting private investment into Ukraine’s renewable energy sector. The event brought together key market players, government representatives and financial institutions to discuss ways to overcome the critical challenges facing investors in Ukraine. Private investment is the foundation for the development of “green” energy, but the pilot auctions of 2024 revealed serious problems in the market: limited access to financing, high war risks and an unstable regulatory environment, which hold back the attraction of capital. In response to this, UWEA and the EUEA initiated the creation of a Minimum Price Guarantee Fund – a strategic financial instrument intended to create a predictable and competitive environment for investors in Ukraine’s renewable energy.
The participants of the event, who included, in particular, representatives of the EBRD and the European Commission, discussed concrete mechanisms for solving the problem of attracting investment into the industry. Among the key topics of the discussion:
- The main obstacles for private investors in Ukraine’s renewables sector;
- The possibilities for introducing a minimum electricity price guarantee mechanism in Ukraine;
- The role of Ukraine and the EU in creating a stable renewables market;
- The interaction between risk-reduction instruments and future renewables auctions.
Oleksandr Podpruhin, Deputy Chairman of the UWEA Board: “The proposed mechanism is not a subsidy; on the contrary, it should stimulate the most market-based mechanisms possible for the creation of new generating capacity. At the same time, it is important that the fund be sustainable and not lead to systemic financial risks. For this, several safeguards are envisaged: the guaranteed price will be set 20–30% below the forecast, which minimises the use of money from the fund; the risk-sharing mechanism and competition among participants will make it possible to optimise the cost of insurance; and the participants’ contributions will create a basis for scaling and long-term financial stability”.
A separate principle to which Mr Podpruhin drew attention is the independence of the fund from the Ukrainian state, which, due to the current situation, remains vulnerable. “State guarantees today are not truly bankable, and therefore, for the successful launch of the mechanism, an international leader is needed, for example, the EBRD. Without such a fund and corresponding support from international partners, the implementation of new projects in the renewables sector will be an extremely difficult task, and Ukraine’s energy system will not be able to achieve the necessary level of resilience and modernisation”, added the Deputy Chairman of UWEA.
Olha Yeromina, Senior Banker, EBRD: “Investors need predictability, because the expected investments are large and long-term. It is wonderful that many donors are ready to support this initiative and continue to work side by side with the relevant state bodies to develop a competitive and resilient renewable energy market”.
Aron Kerepl-Fronius, energy advisor, Delegation of the EU to Ukraine: “Strengthening Ukraine’s energy resilience is one of the EU’s important policy goals. So, we understand the importance and priority of this initiative, and we also see the interest of donors. Now we are awaiting a meeting with renewables producers so that international donors can study in more detail the projects that may qualify for support from the Fund”.
Charles-Antoine de Crombrugghe, policy advisor of the Directorate-General for Enlargement and Eastern Neighbourhood of the European Commission, emphasised the following: “The Minimum Price Guarantee Fund can play a key role in reducing volatility and ensuring the implementation of projects. By focusing on a single targeted instrument, we can effectively contribute to the realisation of existing initiatives. Such a fund should be regarded solely as a temporary solution that complements broader efforts to expand markets and carry out reforms. The ultimate goal remains the creation of a self-sufficient market in Ukraine that will not require such financial instruments. At the same time, until this is achieved, it is important to implement strategic temporary mechanisms, such as the one presented today.”
Ukraine’s energy transition cannot wait! Despite the war, we must act today to create a stable environment for investors. The Minimum Price Guarantee Fund is a real tool for attracting international capital and accelerating the deployment of renewables capacity in Ukraine.
UWEA thanks all the partners and participants of the discussion for their valuable contributions and support. The Association will continue to advocate for solutions that will make Ukraine’s renewable energy market more predictable, stable and attractive for investors.
