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EU to invest in renewable energy in Ukraine

Shiva Singh by Shiva Singh
31 January 2023
in EU Institutions News

Belgium, (Brussels Morning Newspaper) A draft memorandum of understanding to be signed later this week in Kiev shows the EU is planning to invest in renewable energy in Ukraine.

The bloc and Kiev plan to strengthen their cooperation on the development of renewable energy to help Ukraine develop and recover from the war, according to Reuters reporting on Wednesday.

The draft shows that Brussels wants to improve financial, environmental and regulatory conditions to “significantly accelerate the deployment of renewable energy in Ukraine” as well as attract private investments.

According to Kiev, roughly 40% of Ukraine’s energy infrastructure has been damaged in the war and the country will need a lot of help to rebuild.

Last month, the EU announced plans to supply Ukraine with additional 1,000 generators from a reserve in Poland, noting that it previously offered 1,400 through the EU Civil Protection Mechanism.

Different approach

According to the draft memorandum, the bloc would not focus on such provisions, but instead help Ukraine to develop its renewable energy sector.

The two sides would share demand forecasts for renewable natural gas and hydrogen, and align their regulations on certification to facilitate the creation of a market for non-fossil fuels.

“The aim is to provide potential investors with maximum clarity on the development of the industry and on the market for these gases,” the memorandum notes.

It does not say whether cooperation would focus only on green hydrogen, which the EU plans to invest in with the aim of reaching environmental goals, or would also include hydrogen produced with the use of fossil fuels.

The EU largely uses hydrogen produced by burning fossil fuels and is looking to move towards green hydrogen as part of the green push.

In another draft document, France, Hungary and seven other bloc members called for the deal with Ukraine to include “low carbon gases,” which include hydrogen produced with power from nuclear plants.

Nuclear power is the largest source of zero-carbon energy in Ukraine, but some plants have come under fire since hostilities broke out and Russia captured the Zaporizhzhia Nuclear Power Station, the largest in Europe, in March last year.

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