European Union boosts winter energy aid to Ukraine

The EU is stepping up its energy support to Ukraine in the face of Russian strikes. A further 160 million euros in aid has been allocated to restore energy infrastructures before the winter.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Faced with what promises to be a critical winter for Ukraine, the European Union (EU) is stepping up its energy support.
The Ukrainian grid, heavily damaged by Russian strikes, is struggling to keep up with demand, leaving the threat of massive blackouts looming during the cold months.
According to the International Energy Agency (IEA), Ukraine has lost more than two-thirds of its electricity production capacity, a worrying situation as demand is set to rise with the onset of winter.
To address these shortcomings, the EU has announced a €160 million grant to improve Ukraine’s energy infrastructure.
This assistance, mainly dedicated to the installation of renewable energy sources such as solar panels, aims to strengthen the resilience of the Ukrainian energy network in the face of recurring Russian attacks.
This aid is in addition to the already substantial financial commitment made by the EU since the start of the conflict in February 2022.

Crucial aid for energy security

The stakes for Ukraine are high: without external support, the country risks facing massive power cuts, with dramatic repercussions for the population and the effectiveness of the military apparatus.
The destruction of energy infrastructure by Russian strikes is clearly aimed at weakening Ukrainian resistance by paralyzing its means of energy production and distribution.
EU aid, while important, will not be enough on its own to compensate for the losses.
Financial and logistical support will have to be accompanied by an internal reorganization of Ukrainian energy resources, with a focus on the security of critical infrastructures, now considered priority targets in this conflict.
Clearly, Ukraine’s dependence on international aid remains unavoidable to get through the winter.

Differences over the use of long-range weapons

While the energy issue is crucial, the debate surrounding military aid remains just as sensitive.
Ukraine is asking its Western allies for permission to use long-range weapons against Russian targets, and this divides EU member states and NATO members alike.
The European Parliament recently came out in favor of lifting restrictions on these weapons, prompting an immediate reaction from Moscow.
The Chairman of the State Duma, Vyacheslav Volodin, warned of a military escalation that could lead to direct reprisals against European countries.
For the time being, some countries like the UK are more open to this option, while other EU members prefer a more measured approach, fearing an uncontrollable spread of the conflict.
This debate, although secondary for the moment, could nevertheless influence overall support for Ukraine should the war escalate.

Managing frozen Russian assets

In addition to direct aid, the European Union is studying ways of using frozen Russian assets to help Ukraine.
In May 2024, an agreement was reached within the EU to exploit the revenues generated by these assets to finance Ukrainian reconstruction.
This approach, while innovative, raises complex legal issues, notably concerning property rights and the legitimacy of using these funds without Moscow’s consent.
Nevertheless, the EU already released a first tranche of 1.5 billion euros in July, representing a major step forward in the mobilization of available financial resources.
On Moscow’s side, this strategy is perceived as a provocation and an act of theft.
For the EU, however, it is a necessary means of meeting Ukraine’s urgent needs, while at the same time imposing economic pressure on Russia.

Outlook for the future of the energy conflict

The energy situation in Ukraine remains critical and complex.
International support, particularly from the EU, will be crucial in helping the country get through this winter.
However, this is not simply a question of funds or investment: the conflict has demonstrated that energy infrastructure has become a strategic target in modern warfare.
What was once considered an essential civilian resource is now central to the conflict.
By providing significant aid in this area, the EU is seeking to avoid a total collapse of Ukrainian energy capacity, which could have disastrous humanitarian consequences, while at the same time strengthening Kiev’s position in the conflict.
This balanced approach shows that the EU, despite internal tensions between its members over how to handle military support, agrees on the importance of strong and immediate energy support.

Waaree Solar Americas will supply next-generation bifacial modules to Sabancı Renewables for two utility-scale solar plants in Texas, strengthening its presence in the North American market.
A court in Illinois has dismissed a lawsuit filed against ECA Solar, removing legal barriers to the construction of a planned solar facility outside the city limits of Morris.
EDF power solutions acquires a 20% stake in Obelisk, a 1.1GW hybrid solar and storage project in Egypt led by Scatec and Norfund, marking a new milestone in its regional strategy.
Mitsubishi HC Capital Energy and Ecokaku will develop 10 MW of non-subsidised solar power plants annually in Japan, targeting direct contracts with industrial buyers through long-term power purchase agreements.
Canadian company NU E Power plans to fund the development of its solar projects in Lethbridge and feasibility studies in Mongolia, Malaysia, and Africa through a $1.8mn private placement.
Citicore Renewable Energy Corporation signed a PHP3.975bn ($71mn) project finance loan with Bank of the Philippine Islands to accelerate the completion of its 113MW solar power plant in Pangasinan province.
U.S. clean energy capacity growth hits quarterly record, but industry players raise concerns over a slowing market amid regulatory instability.
Norwegian producer Scatec launches commercial operation of its 273 MW solar plant in Western Cape under a 20-year power purchase agreement.
Scatec has signed two shareholder agreements for its 1.1GW hybrid project in Egypt, reducing its economic interest while retaining operational control.
The French subsidiary of Solarwatt has filed for court-ordered restructuring, hit by reduced public subsidies and a downturn in the residential solar segment.
Zelestra sells its Latin American platform to Promigas, including 1.4 GW of operational or under-construction assets and 2.1 GW of advanced-stage projects in Chile, Peru and Colombia.
Over 140 solar sector companies have urged Congress to lift a directive from the Department of the Interior blocking permit approvals, putting hundreds of energy projects in the United States at risk.
Un terminal portuaire en Espagne alliera réfrigération industrielle haute performance et production solaire pour optimiser les coûts énergétiques et les capacités logistiques de PTP Ibérica, avec un démarrage prévu d’ici mi-2026.
Toshiba’s subsidiary commits to acquiring non-fossil certificates from a floating solar power plant operated by OTS in Japan, under a virtual power purchase agreement coordinated by Digital Grid.
Terra-Gen has closed $383.3mn in financing for the construction of its Lockhart III and IV solar units, adding 205 MW to California’s grid with commercial operations expected in 2026.
US developer Ecoplexus has closed a $300mn financing deal with KKR and SMBC to support over 13GW of solar and storage projects under development across the country.
EDP will supply 30% of Carrefour Polska’s energy needs through a PPA combining solar and wind, marking a step forward in the development of renewable capacity in Poland.
French public funding will support the construction of ten solar power plants with storage in Mauritania, as the country works to expand its grid to reach universal electricity access by 2030.
Recurrent Energy has received authorisation to develop Tillbridge, a hybrid 1.3 GW solar and battery project in England, strengthening its expansion strategy in the UK market.
Le Koweït a publié une demande de propositions pour la construction d'une centrale solaire de 500 MW, dont l’électricité sera injectée dans le réseau national sur la base d’un contrat de rachat de 30 ans.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.