EBRD’s Sustainable Energy Initiative (SEI)
Policy measure

The Sustainable Energy Initiative (SEI) of the European Bank for Reconstruction and Development (EBRD) responds to the specific needs of energy transition in the EBRD countries of operation. In financing and implementing a long list of energy efficiency initiatives, EBRD has played an important role in the development of energy efficiency in Ukraine. This applies to both the financial aspects of these endeavours as well as for the provision of technical knowledge and support (EBRD, 2008).


The following larger projects were financed by the SEI in 2006 (EBRD, 2008):

  • In promoting energy efficiency in Ukraine’s energy intensive industry, a EUR102 million EBRD loan was granted to CJSC Ekoenergia, which is part of the Industrial Union of Donbass. The purpose of this loan was to enable CJSC Ekoenergia to construct a 303MV cogeneration facility, in which it would use waste and coke oven gases produced by Alchevsk Iron & Steel Works and Alchevsk Coke Works.

  • A second EBRD loan of EUR 136 million was provided to support Ukraine’s largest steel company, Mittal Steel Kriviy Rih, with the purpose of assisting the company to upgrade technology, boost productivity and decrease the level of energy intensity.

  • A third example is from the power generation area where a EUR150 million loan was provided by EBRD for the national power company Ukrenergo. The objective was to enable the company to construct high voltage transmission lines.

No identified challenges.

The project achieved the following outcomes (EBRD, 2008):

  • Substantial energy savings worth EUR 61.2 million have been achieved and it is estimated that 6 million tonnes of GHGs emissions will have been avoided up to 2012. This is equivalent to the annual emissions of a large European industrial city the size of Manchester.

  • An energy audit commissioned by EBRD on the loan to Mittal, EUR 44.8 million worth of energy efficiency investments were identified. These investments included improving the Energy Management System (EMS), upgrading the electricity distribution system as well as the steam turbine and installation of energy efficient burners. It is estimated that if these measures are implemented by virtue of the loan, the company’s energy costs will be reduced by 10 percent, or EUR 20.4 million and that GHG emissions will be cut by 600,000 tonnes annually.

  • The improvements made in the electricity distribution system have linked central regions with those in the West, taking advantage of the West’ surplus generation capacities, which has improved the efficiency, quality and reliability of the electricity system in Ukraine.


EBRD (European Bank for Reconstruction and Development), 2008. Energy Efficiency in Ukraine: Sector factsheet. Available at: www.ebrd.com/downloads/research/factsheets/eeukr.pdf.