The European Bank for Reconstruction and Development (EBRD) has approved financing for UK-based Elementum Energy, part of US investment group VR Capital Group, to implement two new wind energy projects in Ukraine. The bank will provide loans totalling up to €70 million for the construction of two wind farms with a combined capacity of 258 MW.
According to the EBRD, the financing will consist of two loans of up to €60 million and up to €10 million. The funds will form part of a broader financing package of up to €250 million to be arranged jointly with the International Finance Corporation (IFC) and other lenders. The total project cost is estimated at €401 million.
The financing will be used for the construction and subsequent operation of two wind farms with capacities of 58 MW and 200 MW. Two special-purpose project companies have been registered in Ukraine to implement the developments: Dnistrovska Wind Power Plant LLC and Windpark West-R LLC.
Under the project, the 58 MW wind farm will be built in southern Ukraine, while the 200 MW facility will be located in the western part of the country. The project also includes the construction of related infrastructure, including a 110 kV overhead transmission line to be connected to an existing 330/110/10 kV substation.
According to EBRD estimates, once commissioned, the two wind farms will generate approximately 730 GWh of electricity annually. This is expected to reduce carbon dioxide emissions by around 469,000 tonnes per year, contributing to climate targets and increasing the share of renewable energy in Ukraine’s energy mix.
The bank noted that the construction of the new wind farms is strategically important for Ukraine in terms of both energy security and power-system resilience during the full-scale war. The expansion of wind generation reduces dependence on imported fossil fuels, particularly natural gas and coal, while strengthening the resilience of energy infrastructure through decentralised generation, which is less vulnerable to attacks than large centralised power plants.
Elementum Energy is one of the largest international investors in Ukraine’s renewable energy sector. The company’s portfolio includes facilities with a total installed capacity of 636 MW, comprising 28 solar power plants with a combined capacity of 536 MW and a 100 MW wind farm. The implementation of the new projects will enable the company to significantly expand its presence in Ukraine’s renewable energy market.
