In response to significant losses of energy 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 apartment building owners (OSBB) in implementing energy efficiency projects. On July 5, Minister of Economy Yulia Svyrydenko 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 situation and provide economic benefits to residents of apartment buildings through reduced energy costs. Loans for condominiums will be provided at 0% interest for the purchase and installation of generating units that produce electricity from alternative sources, such as solar panels and heat pumps.
Expansion of the “Affordable Loans 5-7-9%” program
The “Affordable Loans 5-7-9%” program, which previously focused on supporting businesses, now also includes financing for condominiums and housing cooperatives (HCCs). According to the government’s decision of July 5, 2024, condominiums and HCCs can receive loans of up to UAH 5 million for a term of up to 5 years at 7% per annum. The funds can be used to purchase and install alternative energy sources, such as solar panels and electricity storage systems.
The “Affordable Loans 5-7-9%” program will also work in combination with the “GreenDIM” program, which allows condominium associations to receive up to 70% of the project cost after its implementation. 19 banks, both state and private, participate in the financing, which will ensure wide access to credit throughout the country.
Simplifying procedures for energy generation
Energy Minister Herman Galushchenko announced a significant simplification of procedures for business entities in the energy generation sector. This includes the abolition of requirements for the development of urban planning documentation and obtaining certificates of commissioning of new generation facilities. In particular, the term for connecting to gas networks has been reduced from 3 months to 1, which is an important incentive for the development of domestic generation.
Problems with access to credit
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 raising the initial funds necessary for the implementation of projects. Many banks, including PrivatBank and Oschadbank, refuse to lend to condominiums due to the insufficient development of this market segment.
Refutation of tender procedures
The government has also simplified the process of purchasing power generation equipment for state and municipal enterprises. This decision is aimed at accelerating 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, it is necessary to overcome existing barriers by ensuring the availability of financing and support for the implementation of energy efficiency projects at the local level.
