New Loans for Power Plants at 10%: What Businesses Need to Know About the Program.

Government Initiative to Boost Energy Sector Resilience

According to Espreso.tv: A newly launched state program is set to support medium and large enterprises by subsidizing interest rates on loans for building new power generation facilities. Under this scheme, businesses can secure loans at an annual rate of just 10%, making it more affordable to invest in energy projects. This initiative is part of Ukraine's broader effort to strengthen its energy infrastructure amid ongoing challenges, including attacks on the grid.

Funding Scope and Loan Terms

The program covers the construction of:

• gas piston and gas turbine units,
• cogeneration plants,
• biomass and biogas facilities.

Loan amounts range from €1 million to €25 million (in hryvnia equivalent), with repayment terms of up to five years. For projects still under construction, a grace period of up to 12 months on payments is available.

Additionally, businesses can access loans of up to UAH 10 million at 0% interest for purchasing generators and gas units. Funding of up to UAH 250 million is also available for energy projects under the 'Affordable Loans 5-7-9%' program.

“Support extends to projects building gas piston 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 Russian energy terror.”

— Yulia Svyrydenko, Minister of Energy

On February 16, the government also expanded energy support programs for homeowner associations (OSBBs) and private residences. On May 27, the Cabinet of Ministers allocated UAH 3 billion to install 216 block-modular boiler houses. “Every new distributed generation project adds megawatts to the energy system, ensures more stable business operations, and reduces vulnerability to Russian attacks on energy infrastructure,” emphasized Yulia Svyrydenko.

This program is a key component of the government's comprehensive strategy to enhance the country's energy security, especially given the growing threats from Russia. By backing new generation capacity, the initiative not only fosters growth in the energy sector but also ensures stable electricity supply for both businesses and the public—a critical factor for Ukraine's economic recovery during wartime. Ultimately, the government aims to reduce reliance on imported energy resources and boost the nation's energy independence.