What Programs Can Be Used to Power Businesses or Homes with Renewable Energy
Sources?
Despite the challenges caused by Russian aggression, Ukraine continues to actively
develop the renewable energy sector and implement energy efficiency projects.
International financial institutions and private investors are showing significant interest
in this field, recognizing its strategic importance for the country’s recovery and
modernization.

Overview of Key Players and Projects

The European Bank for Reconstruction and Development (EBRD) is one of the most
active investors in Ukraine’s renewable energy sector. At the Ukraine Recovery
Conference in Berlin, the EBRD announced new financial commitments, bringing its total
wartime funding for Ukraine to €4.5 billion.
Key projects include:
🔹 Investment in a joint venture with a German investor for the construction and
operation of solar power plants.
🔹 A €60 million loan to finance the construction of a private biofuel project.
🔹 Loans to local banks to support small and medium-sized businesses, including
energy efficiency initiatives.

The International Finance Corporation (IFC) is actively expanding renewable energy
capacity in Ukraine. According to Patrick Avato, IFC’s Head of Infrastructure and Natural
Resources for Europe, the corporation is preparing to fund four major projects in wind
energy, battery storage, and distributed generation.

The Ukraine Energy Support Fund has purchased a €1.3 million transformer to help
restore power supply in Odesa. The funding was provided by the German Federal Ministry
for Economic Affairs and Climate Action through KfW.

The Energy Efficiency for Ukraine (EE4U) Program, financed by the German
government and managed by the International Finance Corporation (IFC), aims to
modernize Ukraine’s housing sector with energy-efficient solutions.

The Global Environment Facility (GEF) and UNDP are implementing a project to remove
investment barriers for energy efficiency in public buildings through the ESCO
mechanism.

EU Civil Protection Mechanism. In response to massive destruction of Ukraine’s energy infrastructure due to Russian attacks, the EU has provided over 1,000 generators from rescEU reserves. As part of
winter preparedness efforts, additional rescEU stocks have been mobilized, including
equipment and medical supplies for Ukraine.

This mechanism has also helped deliver over 15,000 solar panels to support Ukraine’s energy sector.

Ukraine Energy Support Fund. At the request of the European Commission, the Energy Community established the Ukraine Energy Support Fund, which has mobilized approximately €500 million in
donations.

Power Transmission Reconstruction and Recovery Program. This initiative focuses on strengthening the resilience of Ukraine’s electricity grid by investing in infrastructure repairs and restoring power access for critical facilities. The EU will provide €100 million in investment grants through KfW to support this effort.

Results of Renewable Energy Advocacy

Efforts by Razom We Stand, in partnership with international and Ukrainian NGOs (CEE
Bankwatch Network, Ecoaction), have led to the approval of a requirement that at least
20% of investments under Pillar I and Pillar II of the Ukraine Facility be allocated to
green transition projects.

These projects include renewable energy and energy efficiency initiatives.

The Ukraine Facility (Pillar I) provides €38.27 billion, including:
🔹 €5.27 billion in grants
🔹 €33 billion in loans

The Ukraine Investment Framework (Pillar II) offers a €9.3 billion financial package,
consisting of:
🔹 €7.8 billion for loan guarantees
🔹 €1.51 billion for blended financing
This initiative is expected to mobilize up to €40 billion in public and private investments
over the coming years.

These achievements highlight the importance of cooperation between civil society,
businesses, and the government in shaping sustainable development policies for
Ukraine’s recovery. The result? Accessible financial instruments and funding programs
for renewable energy and energy efficiency projects.

Financial Instruments for Cities, Businesses, and Citizens

“Affordable Loans 5-7-9%” Program. This program offers housing cooperatives (OSBB) and residential building cooperatives (ZHBK) loans of up to 5 million UAH for five years at 7% annual interest. The funds can be used to purchase solar panels, inverters, and batteries. Access to these resources is
provided through 46 partner banks.

Loan Program for Individuals. This initiative helps individuals purchase alternative energy generation equipment. Participating banks include PrivatBank, Oschadbank, Ukrgasbank, Sens Bank, and Globus Bank, offering loans of up to 480,000 UAH for ten years at 0% interest.

“GreenDIM” Program. This program supports housing cooperatives (OSBB) and residential associations
(ZHBK) by compensating up to 70% of equipment costs.
🔹 Up to 1 million UAH – for solar power stations
🔹 Up to 2 million UAH – for heat pumps
🔹 Up to 3 million UAH – for combined energy solutions
The program is implemented through the Energy Efficiency Fund.

International Financing for Renewable Energy in Ukraine

European Investment Bank (EIB) in collaboration with the European Commission and the Ukrainian government, is mobilizing over €1 billion for businesses to support renewable energy projects.

Renewable Energy Solutions Program. A €20 million grant from the German government and the EIB is allocated to foster the development of renewable energy sources (RES) in Ukraine.

“Boost Your Business with Energy” Program. This initiative provides financing and ready-made solutions for small and medium-sized enterprises (SMEs), offering:
🔹 Loans for energy-efficient equipment and renewable energy solutions.
🔹 Consultations on energy efficiency technology implementation.

Direct Financing

Green for Growth Fund (GGF). An investment fund focused on reducing energy consumption and CO2 emissions. It provides:
🔹 “Green” private loans to financial intermediaries for further lending to businesses and
households.
🔹 Direct investments in renewable energy projects and companies.

GGF operates in 19 markets, including Ukraine, with six partner institutions and a total
investment of €114.4 million since its inception.

Green Credit Program in Ukraine. This initiative expands access to financing for:
🔹 Medium-capitalization enterprises
🔹 Small and medium-sized businesses
🔹 Green and circular economy projects
🔹 Climate adaptation and energy efficiency initiatives

The European Union supports this initiative by providing:
🔹 €45 million in first-loss capital
🔹 €7 million in investment grants
🔹 €3 million in technical assistance

These financial instruments and programs create a strong foundation for the development of energy efficiency and renewable energy in Ukraine, providing cities, communities, and businesses with the resources for sustainable growth.

Ukraine has a wide range of financial instruments for renewable energy development, from state programs to international funding. Key trends include the growing role of private investments and corporate agreements, support for decentralized renewable energy generation, and the integration of renewable energy with energy efficiency measures.

For maximum impact, it is crucial to use available tools comprehensively, considering the specifics of each project and the needs of communities or businesses. The development of renewable energy not only contributes to energy independence but also creates new opportunities for economic growth and sustainable development in Ukraine.