EBRD, IFC and Black Sea Trade and Development Bank provide Galnaftogaz with a €157 million loan for the construction of a 147 MW wind farm in Volyn

The European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and the Black Sea Trade and Development Bank announced the provision of a EUR 157 million loan to the Galnaftogaz Group for the construction of a 147 MW wind farm in the Volyn region.

The financing is being provided with support from the European Union (EU), the United Kingdom and the Clean Technology Fund (CTF) of the Climate Investment Funds (CIF), the EBRD said in a statement on Thursday.

It is also noted that this agreement was announced today in Kyiv.

“The financial package consists of EUR60 million in loans from the EBRD and IFC, as well as EUR37 million from the Black Sea Trade and Development Bank. The total cost of the project is EUR225 million (excluding VAT), the remaining amount will be financed by the Galnaftogaz Group, which is implementing the project and is known in Ukraine under the OKKO brand,” the statement said.

Loans are provided to project companies registered in Ukraine: Wind Power GSI Volyn LLC and Wind Power GSI Volyn 3 LLC.

These wind farms, with a combined capacity of 147 MW, are expected to generate at least 380 GWh of renewable, carbon-free electricity annually, reducing CO2 emissions by approximately 245,000 tonnes per year.

The EBRD noted that the new project is one of the first private initiatives to build generating capacity in the Ukrainian energy sector since the start of the Russian invasion in 2022.

The wind farm project, in particular, includes a technical cooperation component, which is being implemented by the EBRD using funds from the TaiwanBusiness-EBRD Technical Cooperation Fund to enhance the client’s ability to detect cyber threats.