Authorization
On 19 February 2025, the UWEA, in partnership with Green Deal Ukraїna, the EUEA, and IMEPOWER, hosted a closed-door online discussion focused on unlocking private investments in Ukraine’s renewable energy sector. The event gathered key industry leaders, government officials, and financial institutions to address the urgent challenges facing investors in Ukraine. Private investment is the foundation of Ukraine’s “green” energy transition, yet the 2024 pilot renewable energy auctions exposed major market weaknesses: limited access to financing, high war-related risks, and regulatory instability, all of which continue to deter capital inflows. In response, UWEA and EUEA have initiated the creation of a Minimum Price Guarantee Fund - a strategic financial mechanism aimed at fostering a predictable and competitive investment environment for renewable energy in Ukraine.
Industry experts, including representatives from the EBRD and the European Commission, explored practical solutions to accelerate private investments in Ukraine’s energy sector. Key topics included:
Oleksandr Podprugin, Vice Chair of UWEA, emphasized that the proposed mechanism is not a subsidy but rather a market-driven solution designed to incentivize new power generation investments: “The proposed mechanism is built on market principles and is designed to attract private capital rather than rely on subsidies. However, ensuring the fund’s financial resilience is critical to preventing systemic risks. To achieve this, we have introduced several safeguards: the guaranteed price will be set 20-30% below market forecasts to minimize fund utilization; risk-sharing mechanisms and competitive selection among participants will help optimize insurance costs; and participant contributions will provide the foundation for scaling and long-term financial stability.”
A key principle, Podprugin noted, is the fund’s independence from the Ukrainian state, given the current economic and political vulnerabilities: “State guarantees in Ukraine are not yet fully ‘bankable.’ To successfully launch this mechanism, we need a strong international lead, such as the EBRD. Without such a fund and the support of international donors, developing new renewable energy projects in Ukraine will remain an extremely difficult task, and the country’s energy system will struggle to achieve the necessary resilience and modernization.”
Representatives from key international financial institutions echoed the need for regulatory and financial stability in attracting large-scale, long-term investments.
Olga Yeriomina, Senior Banker at the EBRD: “Investors require predictability, as these investments are large and long-term. It is encouraging to see so many donors willing to support this initiative and collaborate with relevant government bodies to develop a competitive and resilient renewable energy market in Ukraine.”
Áron Kerpel-Fronius, Energy Policy Advisor, EU Delegation to Ukraine: “Strengthening Ukraine’s energy resilience is one of the EU’s key political priorities. We recognize the urgency and significance of this initiative and see strong donor interest in supporting it. Our next step is to meet with renewable energy producers to allow international donors to gain deeper insight into the projects eligible for fund support.”
Charles-Antoine de Crombrugghe, Policy Officer, European Commission (DG ENEST): “A guaranteed fund can play a crucial role in reducing volatility and enabling projects to reach fruition. By focusing on a single, tailored instrument, we can ensure that existing pipelines materialize effectively. However, beyond immediate and medium-term benefits, careful thought must be given to the fund’s exit strategy. Such a fund should always be viewed as an intermediate solution, complementing broader efforts on enlargement and reforms. The ultimate goal remains a self-sustaining market in Ukraine, eliminating the need for such financial mechanisms. Until then, strategic stopgap measures, like the one presented today, are essential.”
Ukraine’s energy transition cannot wait! Despite the ongoing war, decisive action must be taken today to create a stable, bankable environment for investors. The Minimum Price Guarantee Fund represents a real, tangible tool for attracting international capital and accelerating the deployment of renewable energy projects in Ukraine.
UWEA extends its deep gratitude to all partners and participants of the discussion for their valuable contributions and support. The Association remains committed to advocating for solutions that will make Ukraine’s renewable energy market more predictable, stable, and attractive to investors.
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