Kness Group secures financing for 33.9 MW of solar in Ukraine

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Ukraine-based Kness Group has secured €25.9 million in funds for three solar projects it is planning to develop in the Vinnitsa region, in western Ukraine.

The company has obtained a senior 10-year loan of up to €18.5 million from the European Bank for Reconstruction and Development (EBRD) and a 10-year loan totaling €7.4 million from the World Bank's Climate Investment Fund (CIF).

The projects will also receive technical assistance from the EU4Business program, which supports the EU's projects to back small and medium-sized enterprises in Eastern Europe.

The financing is being granted under EBRD’s Ukraine Sustainable Energy Lending Facility (USELF), an initiative aimed at increasing the country’s renewable energy generation capacity and reducing its dependence on power imports.

According to the EBRD, Ukraine imports up to 80% of the fuels to cover its primary energy needs while “its own generating assets are ageing and highly polluting.”

In 2017, the EBRD agreed to finance clean energy projects to the tune of around €4.1 billion. Over the past years, the bank has provided funds for solar projects in, among others, Jordan, Egypt, Kazakhstan, Greece, and Ukraine.

The EBRD is also currently supporting Albania in setting up a new auction, under which between 50 MW and 100 MW of large-scale solar capacity will be allocated.

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