The governing board of the Climate Investment Funds (CIF) has endorsed an investment plan presented by Ukraine as part of CIF’s Renewable Energy Integration (REI) program for $116.2 million. The initial allocation is set to be $70 million, with modular expansion of $46.2 million, mobilizing an expected $693.8 million from the World Bank Group (including IFC), EBRD, and other sources including the private sector. The plan is designed to support resilient energy in war-affected Ukraine through a cross-border interconnector, renewables, and energy storage.
The need to integrate higher shares of decentralized and renewable energy sources is central to Ukraine’s reconstruction and security objectives, as well as its longer-term alignment with European energy and climate frameworks.
Nearly two-thirds of Ukraine's installed generation capacity have been destroyed, damaged, or occupied. In January 2026, available domestic generation stood at approximately 13 GW against peak demand of 18 GW, forcing scheduled outages of 10 hours or more per day across many regions during the winter of 2025-26.
Ukraine’s investment plan supports a 400 kV interconnector located between Chernivtsi (Ukraine) and Suceava (Romania). This strategic infrastructure is expected to add 880 MW of transfer capacity toward Ukraine and 445 MW toward European electricity networks.
Ukraine will also receive CIF funding to support a private sector window dedicated to commercially structured investments in battery storage (BESS), expected to deliver 610 MW of battery storage capacity. Storage was selected as the primary vehicle because it is modular, fast to deploy, and capable of simultaneously providing balancing, reserve, and curtailment-reduction services particularly critical in a decentralized system.
CIF REI is the world’s only finance program entirely dedicated to renewable energy integration. Through highly concessional funding, the program supports developing economies to build efficient and effective energy systems capable of enabling the large-scale deployment of intermittent power. Investment plans for Brazil, Colombia, Costa Rica, Fiji, India, Kenya, Mali, and Türkiye have been endorsed as part of the program.