Ukraine adopts renewable energy
Ukrainian companies are repairing energy infrastructure destroyed by Russia, improving the country’s energy efficiency, and increasing the use of renewable and alternative energy sources with support from Finland.
Around 30 Ukrainian small and medium-sized enterprises have started to utilise landfill gases and various biomass sources such as woodchips, hay, sunflower seed husks and livestock manure. The end products include biogas, energy pellets and fertilisers.
Finland has funded these companies through the Finland-Ukraine Trust Fund (FUTF) under the Nordic Environment Finance Corporation (NEFCO). It has also facilitated collaboration between Finnish and Ukrainian companies and experts.
Background
Russia’s large-scale invasion of Ukraine in February 2022 has caused significant economic damage and human suffering in Ukraine. Russia has targeted Ukraine’s energy infrastructure, and according to the UN Development Programme (UNDP), Ukraine’s electricity production capacity has shrunk to nearly half its pre-war level.
Before the war, Ukraine had high per capita energy consumption. As part of the post-war reconstruction, the country’s energy system will be modernised. Ukraine will need significant investments to improve energy efficiency, modernise energy systems and develop renewable energy sources.
Impact of Finland's development cooperation
Finland has supported Ukraine with EUR 3.8 million through the Finland-Ukraine Trust Fund (FUTF) under the Nordic Environment Finance Corporation (NEFCO). The fund’s activities ended at the end of 2023.
Finland is also contributing EUR 5 million to NEFCO’s Green Recovery Programme for Ukraine, part of which is allocated to adopting energy-efficient solutions and reducing the use of fossil fuels.
In addition, Finland has supported Ukraine by contributing a total of EUR 5.3 million to the Ukraine fund under the Eastern Europe Energy Efficiency and Environment Partnership (E5P) of the European Bank for Reconstruction and Development (EBRD) since 2022. This support addresses the immediate energy needs of schools, day-care centres and hospitals.