An international finance package of €157m ($172.8m) has been announced to support OKKO Group in developing wind power plants, aimed at bolstering Ukraine’s energy security.
The total cost of developing the wind power plant – among the first greenfield private ventures in the country’s power sector since the Russian invasion in 2022 – is estimated at €225m excluding VAT. The remaining funding will come from equity by the project’s sponsor, GNG Group, also known as Galnaftogaz or OKKO Group in Ukraine.
Go deeper with GlobalData
The project financing debt, announced in Kyiv, is co-financed by the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and the Black Sea Trade and Development Bank (BSTDB), with support from the European Union, the UK and CIF’s Clean Technology Fund (CTF).
The EBRD and IFC are each contributing €60m, while BSTDB is providing €37m.
Loans are being allocated to special purpose vehicles incorporated in Ukraine: Wind Power GSI Volyn and Wind Power GSI Volyn 3.
These loans enable OKKO to build and operate wind power plants with a total capacity of 147MW. The plants will produce at least 380 gigawatt hours (GWh) of electricity annually, while saving 245,000 tonnes of CO₂ emissions per year.
EBRD banking vice-president Matteo Patrone stated: “With significant power generation capacity in Ukraine destroyed as a result of the war, this investment is crucial to address the severe current energy shortfall, support Ukraine’s decarbonisation goals and boost the private sector’s role in further development of the renewable energy sector in the country.”
The loan provided by EBRD is backed by financial guarantees from the EU under its Ukraine Investment Framework, specifically via the Hi-Bar guarantee programme that supports new and existing climate mitigation technologies.
The funds provided by IFC and BSTDB are supported by EU guarantees through the Ukraine Investment Framework as part of IFC’s Better Futures Program: RE-Ukraine.
IFC’s funding also features €10m in debt financing from CTF, while the UK’s Foreign, Commonwealth & Development Office (FCDO) offered grant funding in the form of a first loss guarantee, which facilitated the mobilisation of loans from the IFC and BSTDB.
IFC regional director Europe Ines Rocha stated: “This project will ensure that people can keep the lights on, stay warm and connected – therefore marking a significant milestone in Ukraine’s recovery. While paving the way for a more resilient Ukraine, this transaction also sends a clear signal about the country’s readiness for private investment and ability to meet the challenges of tomorrow.”
In early April 2025, the EBRD announced plans to provide €1bn in aid to Ukraine’s energy sector in 2025.
