In Ukraine, a large-scale state program to support distributed generation projects aimed at medium and large businesses started on June 1. This initiative opens up opportunities for enterprises to attract financing at a favorable rate of 10% per annum for the implementation of new energy projects.
This is reported by Finway
“The program allows businesses to obtain loans for the construction of generating capacities at a preferential rate of 10% per annum.”
Financial Conditions for Lending and Flexibility for Businesses
The loan program offers enterprises financing ranging from 1 to 25 million euros (in the equivalent of the national currency) with a repayment term of up to 5 years. One of the key advantages is the flexible grace period: during the construction and commissioning of the facility, companies can take advantage of a payment deferral of up to 12 months. This significantly reduces financial pressure at the start of project implementation, allowing businesses to plan their expenses more effectively.
Which Energy Projects Are Eligible for Financing
State support extends to a wide range of energy facilities. Financing can be directed towards:
- the construction of gas piston and gas turbine installations;
- cogeneration installations;
- biomass and biogas generation facilities;
- modern energy storage systems.
Priority in loan issuance is given to projects implemented in regions with energy shortages, especially in frontline areas. Businesses can apply to participate in the program through one of the 14 partner banks, the number of which is gradually increasing. The National Development Institution will be responsible for the selection and support of projects.
In addition to this program, other mechanisms to support energy initiatives are also in place in Ukraine. In particular, entrepreneurs have the opportunity to attract up to 10 million hryvnias at 0% per annum for the purchase of generators and gas installations, as well as receive up to 250 million hryvnias for large energy projects within the state program “Affordable Loans 5-7-9%.”
Earlier, the government made a decision to allocate over 1 billion hryvnias to ensure the energy independence of universities.