Is the government of Ukraine really ready for winter?

In response to significant losses of power infrastructure capacity, including about 9 GW due to massive shelling, Ukraine is taking a number of measures to prepare for the new heating season and increase energy efficiency.

Credit programs for condominiums

One of the main steps was the introduction of credit programs aimed at supporting associations of co-owners of multi-apartment buildings (OSBB) in the implementation of energy-efficient projects. On July 5, Economy Minister Yuliya Svyridenko presented a comprehensive package of tools to overcome the electricity shortage. It includes support for households, businesses and electricity imports.

The main goal of this initiative is to reduce energy consumption, reduce CO2 emissions, improve the environmental condition and provide economic benefits for residents of multi-apartment buildings through reduced energy costs. Loans for condominiums will be provided at 0% for the purchase and installation of generating units that produce electricity from alternative sources, such as solar panels and heat pumps.

Expansion of the "5-7-9% Available Loans" program

The "Affordable loans 5-7-9%" program, which previously focused on business support, now also covers financing for condominiums and housing and building cooperatives (HBC). According to the government's decision of July 5, 2024, condominiums and condominiums can receive loans of up to UAH 5 million for up to 5 years at 7% per annum. Funds can be used to purchase and install alternative energy sources, such as solar panels and electricity storage systems.

The "5-7-9% Available Loans" program will also work in combination with the "GreenDIM" program, which allows condominiums to receive up to 70% of the project cost after its implementation. 19 banks, both state and private, participate in financing, which will ensure wide access to credit throughout the country.

Simplification of procedures for power generation

Energy Minister Herman Galushchenko announced a significant simplification of procedures for business entities in the field of energy generation. This includes the cancellation of requirements for the development of urban planning documentation and obtaining certificates for the commissioning of new generation facilities. In particular, the term of connection to gas networks was shortened from 3 months to 1, which is an important incentive for the development of domestic generation.

Problems with access to loans

Despite these efforts, condominiums face problems in obtaining the necessary financing. Although the "GreenDIM" program provides for reimbursement of 70% of costs, condominiums often face difficulties in collecting the initial funds necessary for the implementation of projects. Many banks, including PrivatBank and Oschadbank, refuse to lend to condominiums due to the underdevelopment of this market segment.

Refusal of tender procedures

The government also simplified the procurement process for power generation equipment for state-owned and utility companies. This decision is aimed at speeding up preparations for the 2024-2025 heating season and facilitating access to the necessary equipment.

New credit programs and simplification of procedures are important steps in ensuring Ukraine's energy independence and preparing for the next heating season.

However, for this initiative to be fully successful, existing barriers need to be overcome, ensuring the availability of funding and support for the implementation of energy efficient projects at the local level.

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