The Ukrainian Government has approved a pilot support programme to help large and medium-sized businesses develop their own electricity generation capacities. It is intended to become one of the instruments to implement the Resilience Plans and strengthen the energy autonomy of enterprises.
Headline development
The announced programme would provide preferential loans at about 10% per annum, with the state compensating the difference between the market rate and the concessional rate. The programme provides for the possibility of attracting financing for the construction and commissioning of:
- gas turbine and gas piston units, including cogeneration units
- renewable energy facilities (biomass, biogas, geothermal energy)
- energy storage systems
- local autonomous energy systems and microgrids
The Government positions this mechanism as a response to the challenges faced by businesses due to energy restrictions and infrastructure damage caused by the war. It is expected that the support will enable enterprises to invest in their own generation capacities without excessive financial burden.
Core rules
- Financing would range from EUR 1 million to EUR 25 million in hryvnia equivalent, with a reduced minimum of EUR 500,000 for frontline territories.
- The maximum lending period will be up to five years. The programme will also provide for the possibility of deferring payments until the facility is commissioned, but for no longer than 12 months.
- The programme will be available to companies that meet the established criteria, including companies that have no ties to the aggressor state, are not subject to sanctions, have no outstanding liabilities to the state budget, and do not have non-resident owners of Ukraine.
- The programme is expected to start on 1 June 2026.
- The programme will be administered by the National Development Institution, while applications will be submitted through authorised banks.
- Project selection is planned to be conducted on a competitive basis, taking into account the programme priorities and available funding.
Impact map
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Stakeholder
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Principal potential impact
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Large and medium industrial businesses
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Lower-cost financing for self-generation, improved resilience against outages, and faster payback for energy projects.
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Energy-intensive manufacturers
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Potentially stronger business continuity if own generation offsets grid constraints and peak-price exposure.
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Project developers and EPC contractors
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Additional pipeline for distributed generation, storage and microgrid construction work.
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Banks
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Need to assess eligible borrowers, structure hryvnia-equivalent financing, and administer concessionary pricing through the state compensation model.
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Suppliers of generation equipment
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Potential increase in demand for turbines, gas piston units, storage systems and related services.
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Frontline-region businesses
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Access to a lower entry threshold, which may broaden eligibility for smaller capital projects.
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According to the Government, the development of distributed generation is regarded as one of the key elements of preparation for the next heating season and ensuring the stable operation of critical infrastructure. As of the end of April, 162 MW of new capacities had already been commissioned in Ukraine within the implementation of the Resilience Plans.
For additional information, please contact Asters' Partner Yaroslav Petrov and Senior Associate Tetiana Piskun.
