The State Agency of Ukraine on Energy Efficiency and Energy Saving intends to submit for approval by the government a program to support energy efficiency for 2022-2026 with the volume of UAH 10 billion, acting chairman of the agency Kostiantyn Hura has said.
“Since the insulation credit program is coming to an end this year, we have developed the concept of a new target program for 2022-2026 to support energy efficient measures in the amount of UAH 10 billion, which would include not only “warm loans” for individuals, but also apply to industry, the budgetary sector, transport and individual projects for the development of bioenergy,” he said in a comment to the Energy Reform portal at the all-Ukrainian forum Ukraine 30. Ecology.
He said the mechanism of the proposed program for loans to legal entities will differ from the program of “warm loans,” which consists in compensation for their part.
“We are now considering the possibility of launching such a mechanism as lowering the loan rate, in this case – at the double refinancing rate of the NBU, which is currently 6.5%. That is, the bank’s standard rate minus 13% if an entrepreneur takes out a loan for energy efficiency. The banks’ expenses will be compensated from the budget,” he explained.
According to the expert, the agency has coordinated the program with all interested bodies and is now awaiting approval from the Ministry of Energy.
“After that, we will send it to the government. I hope for its support,” Hura said, adding that such a program to stimulate energy efficiency will provide an opportunity not only to modernize housing, budgetary sectors, enterprises, but also have a positive effect on the economy, creating projects, jobs, increasing budget revenues.
As reported, the Cabinet of Ministers of Ukraine extended until 2021 the state target program for energy efficiency and development of the sphere of energy production from renewable energy sources and alternative fuels, being in effect from 2010 to 2020.
The International Finance Corporation (IFC) may provide Zaporizhia with a $55 million long-term loan to finance a package of initiatives aimed at improving energy efficiency, infrastructure development and transport logistics.
The board of directors plans to consider this project on February 15, 2021, the bank said on its website.
IFC plans to provide Zaporizhia with up to EUR 36.7 million of a loan from its own funds and to organize another EUR 18.3 million through the Managed Co-Lending Portfolio Program (MCPP).
It is assumed that the funds will be used for the installation of an intelligent traffic control system, street lighting and modernization of control centers, the purchase of electric buses, trolleybuses and related infrastructure, (reconstruction of traction equipment, substations, the purchase of road construction and cleaning equipment, as well as the reconstruction of roads and the development of public parks.
In addition, IFC will help develop a Smart City 2.0 strategy for Zaporizhia
The trend towards energy efficiency and high competition in the office real estate market in Ukraine stimulates the launch of projects that meet the requirements of international “green” certificates, according to NAI Ukraine.
“Interest in “green” certification in Ukraine has appeared relatively recently – most of the projects have passed it in the last five years. Thus, among the names of projects with “green” certification are the most notable and successful projects on the market. Compared with the dynamics of certification in Ukraine in the past years, when these were only isolated cases, the number of projects undergoing it now makes it possible to speak of a ‘boom’,” Maryna Hurevych, the head of the consulting department of NAI Ukraine, told the Interfax-Ukraine agency.
According to her, 18 buildings are certified in Ukraine, of which six are certified according to the European eco-certification system BREEAM (two stages of the Astarta business center, Grand in Kyiv, Optima Plaza in Lviv) and 13 objects according to the American LEED system (buildings in Unit.City, Lviv Innovation Park, the business centers MAG.NETT and KMOST, separate offices of Shell, NOX, NEC, the Chanel boutique). At the same time, in general, there are 457 such projects in Eastern Europe, almost 5,000 projects in Western Europe, and more than 20,700 in the United States.
Among the triggers for the development of “green” certification, the expert names the requirements of socially responsible clients, government regulatory policy, a decrease in operating costs against the background of growing costs of utilities, care for health and the environment, and PR.
“High competition in the real estate market forces developers to introduce new formats as quickly as possible. Despite the fact that the price for one square meter of such an eco-building is slightly higher than the “usual” one, requests from investors are becoming more and more,” the expert noted.
According to her, the “green” certification of a building can reduce operating costs by an average of 11-15%, increase the cost of business (up to 38%), ensure the best competitive position in the market, improve the reputation and brand image (up to 18%), and allows increasing rental payments (up to 18% on average higher rental income). In addition, certified business centers attract a progressive audience of tenants, whose share in the country is constantly growing.
The European Bank for Reconstruction and Development (EBRD) could provide a senior loan of up to EUR 25 million to the communal company Dnipro Municipal Energy Servicing Company (Dniprovska Municipalna Energoservisna Kompanya, the city of Dnipro) for energy efficiency investments in 98 public buildings, including 67 kindergartens, 27 schools and 4 outpatient clinics.
“The investments are expected to result in strong improvement of buildings’ condition through renovation of facilities and meeting heating requirements, improved comfort level and reliability of services at kindergartens, schools and clinics, as well as reduction of energy and maintenance costs of the buildings and decrease of CO2 emissions,” the bank said on Tuesday.
The project is pending of the decision of the EBRD board on October 13.
According to the document, the loan maturity is up to 13 years, including up to three years grace, with 20 equal semi-annual repayments. The loan will be secured by a full municipal guarantee from the city.
The loan is expected to be co-financed by up to EUR 5.5 million investment grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P), subject to grant approval by the E5P Assembly of Contributors.
The local contribution of up to EUR 2.5 million will cover additional energy conservation measures and capital repairs.
The EBRD said that the loan will be a sub-project under the Public Sector Energy Efficiency Financing Framework (PSEEF), consisting of municipal-guaranteed loans to municipal energy management companies in Ukraine to facilitate critical improvements in energy efficiency measures in public buildings in a number of cities across Ukraine.
In the period from May 1 to May 12, 2020, state-owned banks issued UAH 67 million of energy efficiency financing to those who plan to improve energy efficiency of their homes in 2020, according to the Energy Reform Internet portal.
State Agency of Ukraine on Energy Efficiency and Energy Saving said on Wednesday, May 13, that last week financing was received by another 1,544 households and some 122 associations of multi-apartment block co-owners took advantage of the program, namely, more than UAH 35 million for thermal insulation of apartment buildings, about UAH 32 million for energy efficient measures in private households, UAH 900,000 for solid fuel boilers.
“In fact, more energy efficiency financing was issued for a week than for the entire month of April, which amounted to UAH 63 million. More than UAH 130 million of financing for energy efficiency purposes has been issued to the population and the associations of multi-apartment block co-owners since the beginning of the program,” the agency said.
State-controlled Oschadbank and Ukreximbank (Kyiv) have signed an agreement on cooperation with the State Agency of Ukraine on Energy Efficiency and Energy Saving under the program of energy efficiency financing for the population in 2020.
According to a statement on the website of Ukreximbank, the financial institution will provide energy efficiency financing for individuals for energy efficient measures in private houses with the possibility of receiving compensation for 35% of the loan amount, but not more than UAH 14,000.
In order to obtain advice from a loan specialist and determine the time of a visit to a bank office, individuals need to contact the nearest office of the financial institution by telephone in advance. Such measures have been taken to prevent the spread of coronavirus (COVID-19) and minimize contacts between citizens during the quarantine period, the bank said in the statement.
According to the agency’s statement on its Facebook page on Thursday, April 16, Oschadbank will provide energy efficiency financing to individuals for the purchase of gas boilers with solid fuel, energy efficient materials and equipment for private houses, as well as for associations of multi-apartment block co-owners for the introduction of energy-efficient measures multi-apartment buildings.
