Iceland Pledges ISK 400M to Bolster Ukraine’s Power Grid via UNDP
In a significant show of international solidarity, the Government of Iceland has pledged ISK 400 million (approximately US$3.25 million) to the United Nations Development Programme (UNDP). This critical funding is designated for the “Strengthening Energy Sector Resilience in Ukraine” programme, aiming to repair and fortify the country’s power infrastructure, which has been severely impacted by intensified attacks.
Addressing a Critical Iceland Ukraine power grid Shortfall
Ukraine’s energy sector is facing a severe crisis, with a generation shortfall of 7 GW resulting from targeted damage to its power infrastructure. This deficit threatens the supply of electricity, heating, and other essential services for millions of citizens, particularly as they face ongoing conflict. Iceland’s contribution, formalized in an agreement with the UNDP, directly addresses this urgent need by focusing on immediate repairs and long-term resilience.
A Multi-Faceted Approach to Iceland Ukraine power grid Security
The funds will be channeled into several key initiatives designed to restore and modernize Ukraine’s energy capabilities:
- Decentralized Energy Solutions: A primary focus is the procurement of cogeneration units with a 4–5 MW capacity for Kyiv. These units are highly efficient as they produce both electricity and heat simultaneously, ensuring a reliable supply for critical social services and residential areas.
- Essential Grid Components: The project will supply vital high-voltage bushings (330 kV and 750 kV), which are crucial components for the operation of power transformers and the stability of the national grid.
- Backup Power for Critical Infrastructure: A robust backup power system will be established for the Ministry of Energy. This system will utilize hybrid inverters and a battery energy storage system (BESS) to guarantee operational continuity for the ministry, even during power outages.
- Modernizing Energy Governance: Beyond physical hardware, the initiative will enhance Ukraine’s energy management capabilities. This includes the implementation of an Energy Programme Information Management System (EPIMS) and an Authorised Security System (AUSS) to bolster cybersecurity and protect against digital threats.
This new commitment builds upon Iceland’s previous support, which has included the provision of other high-voltage equipment and gas engine units.
A Partnership for a Resilient Iceland Ukraine power grid Future
Leaders from all three parties have highlighted the importance of this collaboration. Iceland’s Foreign Minister, Thorgerdur Katrin Gunnarsdottir, emphasized the pledge as an act of solidarity aimed at protecting Ukraine’s most vulnerable populations.
Auke Lootsma, UNDP Resident Representative in Ukraine, noted that the goal extends beyond simple repairs. The focus is on building a more resilient, modern, and sustainable energy system for the country’s future.
Echoing this sentiment, Ukraine’s First Deputy Prime Minister, Denys Shmyhal, welcomed the vital support. He stressed that the assistance is crucial for preventing disruptions to water and heat supplies for millions of Ukrainians who endure the consequences of near-daily attacks on their nation’s infrastructure. This partnership represents a critical step in ensuring Ukraine’s energy security and its path toward a stable recovery.



