The main financial institutions, organizations and funds that provide loans and finance energy saving projects in the country include:

  • World Bank;

  • European Bank of Reconstruction and Development (EBRD);

  • The Nordic Environment Finance Corporation (NEFCO);

  • Eastern Europe Energy Efficiency and Environment Partnership (E5P)

  • U.S. Agency for International Development (USAID);

  • Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH;

  • The Swedish International Development Cooperation Agency(SIDA);

  • National financial sources;

  • Ukrainian banks.

Below the is information on existing funding programs in the field of alternative energy is presented.

1. Ukraine Sustainable Energy Lending Facility (USELF)

Ukraine Sustainable Energy Lending Facility (USELF) is a credit line of up to EUR 50 million, opened by the European Bank for Reconstruction and Development (EBRD) to facilitate the implementation of renewable energy projects in Ukraine. USELF provides loans and assistance in developing projects that meet the financial, technical and environmental criteria of the Program. In addition, the Clean Technology Fund, part of the Climate Investment Funds, provides additional funding of EUR 20 million. 

The USELF structure provides financing for small and medium-sized projects directly from the EBRD through a simplified and accelerated loan scheme, which reduces operating costs. The program envisages financing of all forms of electricity production from renewable sources such as water, wind, biomass, solar energy.

Criteria of compliance, requirements for companies: 

• Companies that are privately owned, registered and operating in Ukraine; 

• Companies that are operate in accordance with national environmental, health and safety legislation; 

• companies that are not engaged in activities listed on the list of prohibited financing on EBRD loans (eg tobacco, strong liquor, etc.). 

Project requirements: 

• replacement of production of electricity from traditional sources and significant reduction of greenhouse gas emissions; 

• Application of proven technology and financial viability of the project.

Investment projects are evaluated by EBRD on the based of information provided by companies (feasibility study, business plan). The technical consultants prepare a project analysis and submit to the EBRD a technical, environmental and financial assessment of the long-term projects, as well as provide legal support to companies. 

Companies that are interested in obtaining of a loan under the Program are provided with free technical support, which is funded through a grant from the Global Environment Fund. The support of borrowing companies includes: obtaining permission and licensing of a project, feasibility study, commercial negotiations, project management recommendations.

2. Innovative vouchers program

Innovative vouchers – a financial instrument that allows Ukrainian companies to finance the introduction of climate innovations. Innovative vouchers can be used by different companies - from the developers of climate technologies to those who seek to use them to reduce the impact on the environment or reduce energy consumption. These funds are not a loan or a credit. During the 2017-2018, EUR 1,000,000 will be used within the framework of the Innovative Voucher program. It is planned to support 50 Ukrainian companies within the framework of the program.

The program is being implemented in Ukraine by the European Bank for Reconstruction and Development under the FINTECS program and with the funding of the EU Neighborhood Facility. Introduction and administration of Innovative vouchers is engaged by the Ukrainian Network of Energy Innovations Greencubator.

The vouchers of two categories are offered:

• voucher up to EUR 20,000 (most companies that will win the competition will receive Innovative vouchers with an average amount of financial support from EBRD up to EUR 20,000);

• Mega-vouchers up to EUR 50,000 (for companies with potential breakthrough projects, 5 mega-vouchers up to EUR 50,000 are offered).

3. State program of “warm” loans

The number of Ukrainian banks which are working on national energy efficiency credit programs and offering credit products for Association of Co-owners of Apartments of One Building (OSBB, condominiums) and other legal entities is not large. They are:

• 20% of the loan amount (no more than 12 thousand UAH) for the purchase of non-gas / non-electric boilers for individuals;

• 35% of the loan amount (not more than 14 thousand UAH) for the purchase of energy efficient equipment / materials for individuals (in particular, this category also includes solar collectors);

• 40% of the loan amount (no more than 14 thousand UAH per apartment) for condominiums / housing stock, as legal entities, for general construction activities;

• 70% of the loan amount (up to 14 thousand UAH per apartment) for the purchase of energy efficient materials and equipment for condominiums (only for households which receive subsidies).

4. USAID projectMunicipal Energy Reform in Ukraine” – financed by US Agency of International Development (hereafterproject USAID MER)

The activity within the framework of the project USAID МЕR is aimed to improving energy policy, developing energy efficiency, reducing traditional energy consumption, increasing investment in the energy sector, reducing costs  for energy and energy resources imports, and reducing greenhouse gas emissions.

The project budget is $ 16.5 million. The project will lasts until March 31, 2018. USAID Ukraine cooperates with commercial banks and other financial institutions to provide partial guarantees. In addition, the USAID project provides technical assistance and provides activities on development of the potential of commercial banks for providing with energy efficiency loans to municipalities, utility companies, condominiums and private sector entities that implement energy efficient projects in the residential or public buildings sector (eg ESCO).

5. The Landing Program for Small and Medium Business in Ukraine within priority sectoral areas from the German-Ukrainian Fund (NUF)

On April 4, 2017, within the framework of the First Financial Fair organized by the German-Ukrainian Fund with the financial support of the German Government, the representatives of the founders of the Fund: NBU, the Ministry of Finance and KfW signed a new program to support the financing of small and medium enterprises in Ukraine.

The priority sectors for investment credits under the Program are agriculture, processing industry, projects in the field of energy efficiency and renewable energy, etc. Use the credit according to the Program can individual entrepreneurs or enterprises with a maximum of 250 employees and an annual income of not more than EUR 10 million in equivalent, which have been operating for at least 3 years, have an income for the last 4 quarters and have a positive credit history in the bank for at least 12 months, and also do not belongs to large companies.

The maximum term of an investment loan is 6 years, and for a loan for replenishment of working capital - 2 years. Within the framework of the Program, financial support to enterprises will be provided through national partner-banks of NUF in national currency at an interest rate, which is below the average market level. The maximum loan amount is EUR 100 000.

6. Grant support of energy efficient projects (fund E5P)

Grant support is a tool for stimulating the implementation of energy efficiency projects. E5P is a multilateral donor foundation founded in Sweden in 2009. The total budget of the fund is EUR 168 million, while 65% of the budget is allocated to projects implemented in Ukraine. The remaining parts are distributed between Georgia, Armenia, Moldova. By 2019 the program will allocate EUR 60 million for implementation of energy efficiency projects in Ukraine. According to the results of the projects, the program can be continued beyond 2019.

7. Financial support of State Innovation Financial and Credit Institution

This institution was created in accordance with the Resolution of the Cabinet of Ministers of Ukraine on 13.04.2000 No. 654 and is the legal successor of property rights and obligations. The institution belongs to the management sphere of the Ministry of Economic Development and Trade of Ukraine and has several regional offices.

The purpose of the SIFCI is providing financial support to economic entities of various forms of ownership within the framework of state innovation policy. In its activity, SIFCI is guided by the current legislation of Ukraine, including the Law of Ukraine "On Innovation Activity". The main areas of funding are:

  • IT technologies;
  • bio-development;
  • transport;
  • aviation;
  • energy;
  • innovations.

In order to received support and funding from world banks and funds for ideas or already operating business, it is necessary to:

1. Fill out the resume of the project (description of the idea, contacts, etc.);

2. Fill in the table for forming a bank of projects - data on volumes of investments, payback periods, etc. (total 9 provisions);

3. Presentation of a business project that does not exceed 10 pages in Ukrainian and English.

4. Send to e-mail:

Simple solutions for complex tasks