The European Bank for Reconstruction and Development (EBRD) has been developing energy efficiency financing facilities in many of its countries of operation. Now Interfax Natural Gas Daily writes that the EBRD is considering a similar arrangement for Ukraine.
EBRD working on Ukrainian energy efficiency funding package
The European Bank for Reconstruction and Development (EBRD) is considering establishing a Ukrainian Residential Energy Efficiency Financing Facility of up to $100 million, the London-based multilateral agency said in a statement. The funds will be made available to participating financial institutions (PFIs) in Ukraine for lending to eligible private sector sub-borrowers for sustainable energy investments in the residential sector.
To minimise the forex conversion risk of the loan, proceeds into local currency and on-lending to the end-borrowers, EBRD credit lines to the PFIs will be supported by a partial hedge against local currency devaluation expected to be funded by a grant from the Clean Technology Fund (CTF). The credit line will be also complemented by donor funds to support the implementation of Technical Cooperation (TC) and non-TC incentive mechanisms for the facility. Potential donors include: CTF; the Eastern European Energy Efficiency and Environmental Partnership; the German Federal Ministry for Environment, Nature Conservation, Building and Nuclear Safety; and the EBRD-Ukraine Stabilisation and Sustainable Growth Multi-Donor Account.
Energy in Demand - Sustainable Energy - Rod Janssen 