Ukraine and UK agree on setting up £62 mln Energy Innovation Fund

Ukraine and UK agree on setting up £62 mln Energy Innovation Fund

The UK has today announced a wide-ranging package of support for Ukraine’s recovery effort at the Ukraine Recovery Conference in London

The Ukrainian Energy Ministry and the British Foreign Office have signed a Memorandum on the Energy Partnership during the Ukraine Recovery Conference (URC2023) in London.

The Ukrainian media reported, citing a statement of the Energy Ministry, that the memorandum, in particular, stipulates the establishment of the InnovateUkraine Green Energy Innovation Challenge Fund worth 62 million pounds. The initial contribution to this fund will be 10 million pounds, the rest of the funds will be allocated in installments by 2025. The Energy Ministry said that the main purpose of the fund is to increase energy security, and the funds will be used for energy innovation projects that will accelerate the process of rebuilding and restoring the Ukrainian energy infrastructure.

The Ukrainian energy sector will shortly receive additional resources to repair and restore the damaged infrastructure, Energy Minister German Galushchenko, who signed the memorandum, said.

The British government said on its website that a 45-million-pound financing package is envisioned, which is part of a wider British program worth 62 million pounds.

Of these funds, 25 million pounds is expected to go to the Ukraine Economic Resilience Action platform, which was established by the International Finance Corporation in December 2022 to bolster Ukraine's energy security, while 3 million pounds will support a new technical assistance facility to speed up a Ukrainian energy sector reform and decarbonization.

The United Kingdom, Ukrainian government and the G7+ members also agreed on a new Clean Energy Partnership to coordinate international efforts to rebuild Ukraine's energy system as a more advanced, decentralized and environmentally friendly system, fit for full European integration and a Net Zero future, it said.

The Ukrainian Energy Ministry said that under the memorandum, the British side will provide it with assistance under the Clean Energy Partnership and will continue to support the Resilience and Energy Security of Ukraine (URES) program. The Energy Ministry identified technological cooperation, grants as part of official development assistance, as well as, in particular, trade and investment facilitation in such areas as small modular nuclear power plants, green hydrogen and other renewable gases, solar micro/mini grids, solar systems for small households, energy efficiency, ground and offshore wind energy, development of the carbon market as the trends of cooperation.

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