The EBRD has partnered with the Goldbeck Solar Group to develop up to 500 MWp of solar PV projects in Ukraine over the next three to five years. As the country’s largest institutional investor, the EBRD prioritizes private sector investments and energy security.
The First Foreign Private Solar Energy Project
The German firm Goldbeck Solar will manage the project through a joint venture, Goldbeck Solar Investment Ukraine GmbH. This deal marks the first privately financed renewable energy project with a foreign investor that the EBRD has backed in Ukraine since the war began. It is also Goldbeck Solar’s first investment in the country’s energy sector.
Announced at the Ukraine Recovery Conference in Berlin, the agreement strengthens the EBRD’s partnership with the Goldbeck Solar Group. A German solar energy company with over 20 years of experience, Goldbeck operates in more than 12 countries, employs over 550 people, and has developed more than 3 GW of solar capacity across 20 nations.
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This initiative is designed to bolster Ukraine’s domestic electricity generation and marks a significant milestone in attracting foreign direct investment for the country’s reconstruction and green transition.
Addressing Ukraine’s Damaged Energy Infrastructure
According to Ukraine’s energy ministry, recent Russian attacks have taken a severe toll. By the end of April 2024, approximately 13 GW of production capacity had been damaged or destroyed, causing rolling blackouts nationwide. The energy system now faces a persistent deficit in generation capacity, jeopardizing the stability and integrity of the power grid.
Energy security is one of the EBRD’s five key investment priorities for Ukraine, along with support for essential infrastructure, food security, trade, and the private sector. In response to the attacks, the EBRD is revising its project pipeline to provide greater support through investments in the energy industry.
As Ukraine’s largest institutional investor, the EBRD has significantly boosted its financial support since the full-scale war began in 2022, allocating over €4.2 billion to the country. The Bank’s shareholders recently approved a €4 billion paid-in capital increase, which will allow the EBRD to maintain its current investment levels during the conflict and potentially expand its support once reconstruction begins.
€30 million for New 35 MW Solar Power Park
As an example of prior investment in the sector, Modus Group invested €30 million in a 35 MW solar power park in Ukraine, marking its first project in the country. The initiative, led by its subsidiaries Green Genius and Modus Energy International, was built in the Zhytomyr region starting in the second half of 2019 and was expected to generate around 45,000 MWh of electricity annually.
At the time, Ukraine was supporting renewable energy through a feed-in tariff scheme that committed the state to buying electricity directly from solar plants. By the first quarter of 2018, the country’s total installed solar capacity had reached 841 MW, with significant backing from the European Bank for Reconstruction and Development and the World Bank.
Modus Group board member Ruslan Sklepovič noted at the time that Ukraine’s efforts to align with Western Europe on renewable energy were creating investment opportunities for experienced companies. He added that the government’s promotion of renewables fostered a favorable environment for foreign investors like Modus Group.
The partnership between the EBRD and Goldbeck Solar to develop 500 MWp of solar PV projects in Ukraine represents a vital step toward enhancing the country’s energy security and green transition. Amid the ongoing conflict and damage to its energy infrastructure, this initiative underscores the critical role of foreign direct investment in stabilizing and expanding Ukraine’s renewable energy capacity.
