Finland is supporting the reconstruction of Ukraine’s war-torn energy sector by allocating 28.5 million euros from its development cooperation funds.
According to a press release from the Finnish Ministry of Foreign Affairs, the total cost of the power plant technology is 46.5 million euros, with Ukraine financing the remainder of the project on its own.
Wärtsilä Finland Oy was selected as the supplier. The power plants will be manufactured in Vaasa, which will also contribute to job creation, the development of expertise, and exports in Finland.
The Ukrainian state-owned energy company Ukrnafta is purchasing these power plants to ensure energy production in the country. Reliable energy production is of vital importance, especially during the winter months, when Russian attacks on energy infrastructure complicate daily life in Ukraine.
According to Minister of Foreign Trade and Development Ville Tavio, this project combines Finland’s support for Ukraine with the advantages of Finnish technology.
“Finland possesses world-class expertise in the energy sector, which can be of great help to Ukraine in its recovery efforts. I am pleased that Finnish technology and Finnish workers are contributing to strengthening the security of Ukraine’s energy supply. At the same time, this project promotes Finnish exports and employment,” Minister Tavio noted.
Finland’s funding for the project is provided through the Finnish-Ukrainian Investment Fund (FUIF). The FUIF’s goal is to support public investments in Ukraine using Finnish technology, expertise, and services. Finland’s financial resources will be used to cover the interest expenses and principal amount of the investment loan that Ukraine will receive. Finvera is providing a 100% export guarantee for this loan.
Azerbaijan intends to increase electricity exports to neighboring countries and enter the European energy market, said the country’s president, Ilham Aliyev.
“By expanding our export capabilities to neighboring countries, we will also enter the European market. After all, we have already entered the European market with our oil and gas, but we want to enter it with electricity as well,” Aliyev said in an interview with the Azerbaijani state television channel AzTV.
According to him, the only route for supplying electricity to Europe currently runs through Georgia and Turkey, but Azerbaijan intends to expand the number of export routes. In this regard, a feasibility study for the Black Sea Energy project has already been prepared.
In addition, in November 2024, as part of COP29, Azerbaijan, Kazakhstan, and Uzbekistan signed an agreement to lay an electrical cable along the bottom of the Caspian Sea.
“Azerbaijan will establish itself as a country that generates, receives, transmits, and exports electricity,” Aliyev said.
He also noted that the capacity of solar power plants in the Nakhchivan Autonomous Republic (NAR) could reach 500 MW, and up to 1 GW in the future.
“The main issue here is export capacity. To achieve this, of course, negotiations must be held with the relevant authorities in the respective countries, and these are already underway,” the president said.
At the same time, Aliyev noted that the existing power transmission lines from the NAR to Iran and Turkey have limited capacity, which needs to be increased.
“That is, for exporting 500 megawatts—or even 1,000 megawatts—of electricity, there are currently two routes: one to Turkey and the other to Iran. But in the future, this could also include Europe,” he said.
The head of state added that Azerbaijan’s plans to export electricity are in line with the interests of the countries “surrounding us.”
“It’s just that coordination efforts here must be carried out properly, at the necessary level, and negotiations must be accelerated. I can say that negotiations on this matter are currently underway with both Turkey and Iran. It’s too early to say anything for sure,” the president said.
As part of the implementation of the energy sustainability plan, distributed cogeneration facilities with a total capacity of 65 MW have already been built in Kyiv, according to Petro Panteleev, acting first deputy head of the Kyiv City State Administration.
“We have already built cogeneration plants with a capacity of 65 MW and diesel power plants with a capacity of over 16 MW,” he said at a press briefing on Monday dedicated to the progress of the Kyiv City Resilience Plan.
The level of readiness for infrastructure restoration, Panteleev added, has already reached 60%. In addition, the city is working to prepare its housing stock for the heating season.
According to the city official, Kyiv has allocated 800 million hryvnias over the course of the year for the repair and modernization of electrical switchboards. Work is planned this year at 742 facilities; so far, 20% of the plan has been completed.
As Panteleev noted, energy efficiency measures have already been implemented in over 2,000 residential buildings through municipal and state programs.
It was previously reported that the capital’s Resilience Plan allocates 37 billion hryvnias for the restoration and construction of facilities and infrastructure.
The European Union has transferred an additional 30 million euros to the Ukraine Energy Support Fund, thereby increasing its total contribution to the fund to 279 million euros, according to Ukraine’s First Deputy Prime Minister and Minister of Energy Denys Shmyhal.
“The funds received through this financial instrument are helping us restore energy infrastructure damaged by Russian attacks, purchase urgently needed equipment for our energy companies, and ensure a reliable energy supply, first and foremost for critical infrastructure,” – Shmyhal was quoted as saying by the Ministry of Energy’s press service on its Telegram channel on Saturday.
According to “Serbian Economist”, Serbia has provided Ukraine with humanitarian aid totaling approximately 63 million euros since the start of the full-scale war, said Andon Sapundži, Serbia’s ambassador to Ukraine.
About 10 million euros of this amount was allocated to support Ukraine’s energy sector and restore damaged infrastructure.
Serbia also announced an additional contribution of 2 million euros as part of the UNDP’s “Green Energy for Ukraine” program.
The funds are planned to be used to install transformer equipment with a total capacity of 63 MW to meet the needs of Kryvyi Rih. The equipment is expected to be commissioned in early 2027.
According to the ambassador, Serbian companies are already exploring opportunities to participate in Ukrainian reconstruction projects. Areas of particular interest include the energy sector, construction, the production of building materials, transportation infrastructure, and industrial cooperation.
He emphasized that Ukraine’s reconstruction should not be postponed until the end of the war, as some energy and infrastructure needs must be addressed immediately.
Serbian business participation in large-scale projects is currently in the stage of assessing opportunities and identifying specific partnerships.
The Kyiv Region Regional Development Agency has signed a memorandum of cooperation with Aydem Holding A.S., one of Turkey’s largest energy investors, regarding the construction of up to 100 MW of renewable energy capacity in the region.
According to a post by the Agency on LinkedIn on Thursday, it will provide comprehensive support to the investor at all stages of the project’s implementation, including identifying the optimal land plot, engaging with local communities, and coordinating with government authorities. Project support will be provided in collaboration with UkraineInvest.
“Our goal is to make the Kyiv region one of the most attractive regions for international investors, where large-scale investment projects are implemented quickly, transparently, and effectively,” commented Nazarii Volyanskyi, director of the Agency.
According to him, the partnership with Aydem Holding A.S. will mark the beginning of new large-scale investments, contribute to the development of the region’s energy infrastructure, and strengthen the Ukrainian-Turkish economic partnership.
The holding company’s website states that it has been operating in the fields of electricity generation, distribution, and retail for 40 years, applying an innovative approach in the energy sector. The primary focus is on renewable energy: hydro, wind, and geothermal sources.
Aydem Holding, ENERGY, INVESTMENT, Kyiv Oblast, RENEWABLE ENERGY
