Swedfund, a Swedish development finance institution, and Naftogaz, Ukraine's state-owned energy company, have joined forces to modernise Ukraine's energy infrastructure.

This Memorandum of Understanding (MOU) focuses on two key areas:

• Revamping Combined Heat and Power Plants (CHPs): The plan is to upgrade these facilities to reduce energy loss and emissions, making them more reliable and efficient.
• Developing Renewable Energy: Swedfund will support projects like wind power to help Ukraine move away from natural gas for power generation.

This collaboration builds on Swedfund's existing support for Ukraine in various sectors, including water, sanitation, and digitalisation.

Building a Sustainable Future Together

"Through feasibility studies and capacity-building efforts in Ukraine, we are laying the foundations for more sustainable infrastructure projects," says Stefan Falk, Director of Project Accelerator at Swedfund. "Supporting Naftogaz in their process of strengthening Ukraine's energy security and the country’s long-term transition to carbon neutrality is an important piece of this puzzle."

Swedfund's Project Accelerator offers grant funding for feasibility studies on high-impact projects. This includes modernising CHPs and developing renewable energy sources like wind power. These efforts will ultimately help Ukraine reduce its reliance on natural gas for energy production.

The Project Accelerator is a special unit within Swedfund dedicated to sustainable development projects in certain countries, with a strong focus on the energy sector. The Swedish government has provided additional funding specifically to support Ukraine's infrastructure reconstruction and development.

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Source: Swedfund