The Government of Iceland and the United Nations Development Programme (UNDP) have signed a new agreement to strengthen the resilience of Ukraine’s energy sector, contributing ISK 400 million (around US$3.25 million) to the initiative. The project, part of the “Strengthening Energy Sector Resilience in Ukraine” programme, focuses on procuring decentralised energy solutions and modernising critical infrastructure to address a generation shortfall of at least 7 GW following intensified attacks on Ukraine’s power systems. A key component involves delivering cogeneration units with a 4–5 MW capacity for Kyiv to ensure reliable energy supply.
Iceland’s Minister for Foreign Affairs, Thorgerdur Katrin Gunnarsdottir, emphasized the country’s ongoing solidarity with Ukraine, noting that the support will help keep critical social services operational and protect vulnerable populations. UNDP Resident Representative in Ukraine, Auke Lootsma, highlighted that the partnership aims not only to repair damage but also to build a more resilient and sustainable energy system capable of supporting millions of people dependent on essential services.
Ukraine’s First Deputy Prime Minister and Minister of Energy, Denys Shmyhal, welcomed the technical assistance, underscoring the importance of high-voltage bushings and cogeneration units in preventing large-scale disruptions and maintaining water and heat supplies amid near-daily attacks on energy facilities. This contribution builds on Iceland’s prior support, which included the delivery of high-voltage 330 kV bushings and gas engine units to stabilise the national grid.
The project also includes modernising energy governance through the Energy Programme Information Management System (EPIMS) and establishing an Authorised Security System (AUSS) to strengthen cybersecurity. Additional interventions cover high-voltage 750 kV bushings and a dedicated backup power solution for the Ministry of Energy, combining hybrid inverters with a battery energy storage system (BESS) to maintain operations during power outages.
Implemented under the UNDP Green Energy Recovery Programme, the project aligns emergency infrastructure repairs with long-term energy security, modernisation, and sustainability. Ukraine’s energy sector has suffered approximately $24.8 billion in direct damage since February 2022, with electricity infrastructure alone accounting for $17.1 billion. Total recovery needs are projected at $90.6 billion over the next decade. The programme applies “Build Back Better” principles, prioritising energy efficiency, green transformation, gender inclusion, and institutional strengthening while supporting Ukraine’s post-conflict recovery.
