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The United States Agency for International Development (USAID) has long been a central player in the global effort promoted by Washington for achieving sustainable development, alleviating poverty, and improving access to essential services throughout the world. Energy has been an important sector of the USAID since the agency was established in 1961. Many energy programs were launched in Europe in the last decades, and the Trump administration’s decision to dismantle the USAID could have a significant impact on those countries that rely on U.S. support for energy diversification and sustainability efforts. 

To have a general picture of the role played by USAID in Europe, we have to take into account the contribution of expertise and resources given to projects that complemented EU initiatives over the whole continent, especially in the Eastern countries. USAID’s programs have mainly focused on energy infrastructure development, capacity building, and the introduction of innovative technologies. In this context, all these aspects of economic cooperation will be jeopardised without the agency’s involvement. The recent disconnection of the Baltic countries’ electricity systems from the Russian-controlled IPS/UPS system shows how some regions in Europe are still grappling with the legacy of Soviet-era energy systems. For non-EU countries in Eastern Europe, like Ukraine, Moldova, and those in the Balkans, the daily reality is one of significant and continuing energy security challenges due to their heavy reliance on Russian natural gas and the need for modernisation of their energy infrastructure. In the past decades, after the end of the Cold War, USAID’s energy programs have thus been crucial in providing technical expertise and financial support for these countries as they diversify their energy sources and improve the efficiency of their grids. It comes not as a surprise that without US support, many of these countries could face delays in their energy transition efforts, despite EU-led initiatives in this sector. In fact, while the EU and private investors may step in to fill some of the void created by President Trump’s decision over USAID, the absence of US expertise and funding could still hinder the speed and efficiency of the energy transitions in Eastern Europe. Energy efficiency projects, in particular, require specialised knowledge and the capacity to implement complex technological solutions. USAID has shown an excellent command in all these areas in the past. The dismantling of such an agency could clearly result in an increasing loss of expertise and, above all, in increasing costs for energy reforms and projects associated with the green transitions.

Then there is Ukraine. Since Russia launched its unjustified full-scale war against its neighbouring country on February 24, 2022, USAID, through its Energy Security Project (ESP), “has been helping Ukraine to make its energy infrastructure resilient to attacks, ensuring Ukrainians have electricity, gas, heat, and hot water,” as the US Agency stated on its website. In February 2024, USAID reaffirmed the agency’s commitment to bolster Ukraine in the face of Russia’s attacks, including $422 million of new energy assistance “to improve the resilience of Ukraine’s energy system through the restoration of critical infrastructure, the introduction of distributed generation, the reformation of the energy sector, and the facilitation of Ukraine’s post-war transition to a low-carbon, competitive, and EU-integrated energy economy.”. In September 2024, the U.S. Secretary of State announced an additional $325 million in energy assistance to support Ukraine’s energy infrastructure “and help repair and restore power generation facilities damaged by Russia’s attacks, as well as deploy distributed power technologies, provide emergency backup power for critical services like water and heat, and strengthen the physical security of critical energy infrastructure.”. This was under the Biden Administration; at the time being, we do not know how the US will help Ukraine’s energy sector with Donald Trump back at the White House.

Written by: Francesco Marino