EBRD and EU back new solar capacity in Ukraine: USD 45 million for Kernel's Energy RTB 2
The European Bank for Reconstruction and Development is backing a new renewable energy investment by Kernel, one of Ukraine's leading agribusiness groups, to strengthen the country's energy security and resilience during the war. The EBRD is lending USD 45 million to Energy RTB 2, a wholly owned subsidiary of Kernel, to build a 106 MW solar power plant with a co-located battery energy storage system.
The loan is backed by a partial guarantee from the European Union under the Ukraine Investment Framework. The plant and storage will be located in one of the country's most energy-deficient regions.
Energy impact
Once completed, the plant is expected to generate about 141 GWh of renewable electricity a year and cut carbon dioxide emissions by roughly 82,500 tonnes annually. The new decentralised capacity will help stabilise the power system, reduce the frequency of outages and support economic activity in the region.
At a time when energy infrastructure faces deliberate Russian strikes, decentralised renewable projects of this kind expand domestic generation and strengthen resilience. Over the longer term, the investment also serves decarbonisation goals by raising the share of renewables in the electricity mix.
Social dimension
Besides its contribution to energy security, the project will help improve the livelihoods of more than 10,000 Kernel employees, many of whom are demobilised veterans. Together with the EBRD, the company will implement workplace accessibility measures for staff affected by war-related injuries and disabilities, and will expand training opportunities for young people by setting up modern engineering and energy laboratories at vocational education institutions.
EU guarantees and partners
The EBRD's financing will be backed by a partial EU guarantee under the HI-BAR programme, which operates within the Ukraine Investment Framework. HI-BAR supports investment in next-generation climate technologies and in businesses in the energy and energy-intensive sectors, including new climate technologies, critical raw materials and the rollout of mature technologies such as wind and solar where market barriers persist.
Kernel is among Ukraine's largest exporters and employers in the food and agribusiness sector and a long-standing EBRD client. The project is an important step in the group's diversification into clean energy and helps maintain the continuity of its operations and jobs under difficult conditions.
The EBRD is Ukraine's largest institutional investor: since Russia's full-scale invasion in 2022 it has substantially increased its investment, directing billions of euros to support the real economy, above all energy security, private-sector resilience and critical infrastructure.