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Norway signs new agreements to strengthen Ukraine's energy security and green transition

Government of Norway

Press release | Date: 10/07/2025

To support the reconstruction and development of a less vulnerable energy system in the future, Norway is entering into three new cooperation agreements with NEFCO, UNDP and the Energy Community.

"Norway is continuing its commitment as a close and reliable partner for Ukraine in the energy sector. After more than three years of full-scale war and repeated Russian attacks, Ukraine's energy infrastructure continues to be severely and deliberately targeted. These agreements for reconstruction and the transition to a future energy system will provide enhanced energy security and increase green energy production," says Minister of Foreign Affairs Espen Barth Eide.

The agreements will be signed in the presence of Minister of Trade and Industry Cecilie Myrseth and Ukraine's Minister of Energy Herman Halushchenko in Rome on 10 July, during the Ukraine Recovery Conference.

"Energy is a high priority in Norway's civilian support for Ukraine. We have a responsibility to support Ukraine in this critical time. By investing in Ukraine's transition to a sustainable energy system—and at the same time ensuring that the population has access to electricity and heating during the winter—we are strengthening Ukraine's energy security and helping meet the basic needs of its people, now and in the years to come," says Minister of Trade and Industry Cecilie Myrseth.

The three agreements have a total budget of NOK 2.8 billion over three years. In 2025, NOK 1.65 billion will be disbursed to support Ukraine's energy security and green transition. The funding will contribute to the repair of critical infrastructure, enhanced energy security, and promotion of renewable energy.

Facts about the three agreements:

UN Development Programme (UNDP) - NOK 2 billion:
A three-year agreement that facilitates decentralised power production and modernisation of the energy sector. The measures include 256 MW of new power capacity, an annual reduction of over 100,000 tonnes of CO₂, and the restoration of heating and water supply services that could benefit four million people in severely affected areas. The project also supports women's participation in the energy sector, improvements in energy efficiency across critical sectors, and a national solar energy programme that reduces reliance on fossil fuels. NOK 1 billion will be disbursed in 2025.

Energy Community - NOK 500 million:
The funds will be disbursed in 2025 and allocated to the repair and upgrading of critical energy infrastructure through the Ukraine Energy Support Fund (UESF). Through the fund, Norway will support the reconstruction and reinforcement of energy infrastructure—damaged or destroyed in the war—in cooperation with Ukrainian energy companies.

NEFCO (Nordic Environment Finance Corporation) - NOK 300 million:
Through a three-year agreement with Norway, NOK 300 million will be allocated to the Green Recovery Programme for Ukraine (GRPU), of which NOK 150 million will be disbursed in 2025. The fund was established to support local authorities in rebuilding after the destruction caused by the war, with an emphasis on green, energy-efficient, and climate-friendly solutions. Lower energy consumption and increased energy efficiency are crucial for Ukraine's path toward closer cooperation with the EU. With this agreement, Norway continues its commitment to energy efficiency in Ukraine—an area with great potential for emissions reductions, cost savings, and enhanced energy security.