EBRD Backs Kernel With $45 Million To Build Major Solar Plant As Ukraine Battles Energy Attacks

The European Bank for Reconstruction and Development (EBRD) is supporting a new renewable energy project led by Kernel, one of Ukraine’s major agribusiness companies, to help strengthen the country’s energy security during the ongoing war. This investment comes at a time when Ukraine’s electricity system continues to face severe pressure due to repeated attacks on its power infrastructure.

The EBRD is providing a loan of US$ 45 million to Energy RTB 2, a fully owned subsidiary of Kernel. The funding will be used to build a 106 MW solar power plant in Ukraine, along with a battery energy storage system located at the same site. This combination will enable the plant to supply clean electricity and store excess power for use during peak demand or in times of grid instability.

Once the solar plant is operational, it is expected to generate around 141 GWh of renewable electricity every year. This will reduce carbon dioxide emissions by approximately 82,500 tonnes annually. The project will add new decentralised power generation capacity in one of the regions most affected by energy shortages.

By doing so, it will help stabilise the local electricity network, reduce the frequency of power outages, and support economic activity in surrounding communities. The need for decentralised renewable energy projects has become increasingly urgent as Ukraine continues to experience targeted Russian attacks on its critical energy infrastructure.

By expanding domestic generation capacity through renewable sources, the country can strengthen its overall energy resilience. In the long term, this investment also aligns with Ukraine’s climate goals by increasing the share of renewable energy in its national electricity mix.

Beyond energy security, the project will also contribute to social development. It will help improve the livelihoods of more than 10,000 Kernel employees, including many demobilised veterans who have returned to the workforce. Kernel will work closely with the EBRD to introduce workplace accessibility improvements for employees with war-related injuries or disabilities.

Additionally, the company plans to enhance vocational education by establishing modern engineering and energy laboratories in technical training institutions, offering young people more opportunities to build skills in growing sectors.

The EBRD’s loan is supported by partial financial guarantees from the European Union under the Ukraine Investment Framework, through the HI-BAR guarantee programme. HI-BAR is designed to encourage investment in next-generation climate technologies, critical raw materials, and renewable energy solutions such as wind and solar, particularly in markets where barriers to entry still exist.

Kernel is one of Ukraine’s largest employers and exporters in the food and agribusiness sector and has been a long-standing partner of the EBRD. This new project marks a significant step in the company’s expansion into clean energy, while helping maintain stability for its operations and workforce during a period of exceptional difficulty.

The EBRD remains the largest institutional investor in Ukraine and has substantially increased its support since Russia launched its full-scale invasion in 2022. Over the course of the war, the Bank has invested billions of euros to support the country’s economy, focusing particularly on energy security, private-sector resilience, and the preservation of essential infrastructure.