Starting June 1, a government support program for distributed generation projects has been launched for Ukrainian enterprises, allowing businesses to obtain preferential loans at 10% per annum for the creation of new generating capacities.
This is reported by Finway
Conditions for Participation in the Government Program
The program is aimed at large and medium-sized businesses planning to build gas piston and gas turbine installations, cogeneration complexes, biomass and biogas facilities, energy storage systems, and other infrastructure to enhance the stability of electricity supply. Special attention is given to projects implemented in energy-deficient regions, particularly in frontline areas.
“As of June 1, the government support program for distributed generation projects has started. Enterprises will be able to attract loans for the construction of new generating capacities at 10% per annum thanks to the state compensating part of the interest rate. The program is aimed at large and medium-sized businesses,” the message states.
Financial Conditions and Application Procedure
The amount of financing for participants is set between 1 to 25 million euros (in the equivalent of the national currency), and the maximum loan term is 5 years. During the construction and commissioning period, there is a possibility of deferring payments for up to 12 months.
Enterprises can apply for participation in the program through 14 partner banks, with plans to expand this number. The selection and support of all projects are carried out by the National Development Institution.
In addition to the new program, businesses can also take advantage of zero-interest loans up to 10 million hryvnias for generators and gas installations, as well as receive up to 250 million hryvnias for energy projects under the “Affordable Loans 5-7-9%” program.
Thanks to these initiatives, the state compensates the difference between the market and preferential rates for enterprises, promoting the development of domestic generation and increasing the country’s energy independence in the context of Russian energy terror.