Yulia Svyrydenko: State support programme for distributed power generation projects launched on 1 June

On 1 June, a state support programme for distributed power generation projects was launched in Ukraine.

The programme is primarily aimed at medium-sized and large businesses. Through state compensation of part of the interest rate, companies will be able to obtain loans for the construction of new power generation facilities at an annual rate of 10%.

“The support covers projects involving the construction of gas engine and gas turbine units, cogeneration plants, biomass and biogas facilities, energy storage systems, and other infrastructure that will improve the reliability of electricity supply for businesses and communities amid russia’s ongoing energy terror,” said Prime Minister of Ukraine Yulia Svyrydenko.

Priority will be given to projects implemented in energy-deficit regions, particularly frontline areas. Applications can currently be submitted through 14 partner banks, with the number expected to increase. Project selection and support will be carried out by the National Development Institution.

Financing under the programme ranges from EUR 1 million to EUR 25 million in hryvnia equivalent. Loans may be issued for terms of up to five years. Projects that are under construction or being commissioned may benefit from a repayment grace period of up to 12 months.

In addition to the new programme, businesses can already access loans of up to UAH 10 million at 0% interest for the purchase of generators and gas-powered equipment, as well as financing of up to UAH 250 million for energy projects under the state Affordable Loans 5-7-9% programme.

“The development of distributed power generation is one of the key components of the Regional Resilience Plans. Every new distributed generation project means additional megawatts for the power system, more stable operations for businesses, and reduced vulnerability to russian attacks on energy infrastructure,” Yulia Svyrydenko stressed.