EBRD finances energy efficiency projects in Ukraine

The European Bank for Reconstruction and Development (EBRD) will disburse €18 million to three partner banks to support more than 18,000 energy efficiency projects in Ukrainian households.

The initiative is part of EBRD’s Residential Energy Efficiency Financing Facility (UREEFF- IQ energy programme), a €15 million grant funding launched in April 2016 to support Ukraine’s energy efficiency drive. The programme is supported by Eastern Europe Energy Efficiency and Environment Partnership (E5P), to which the European Union is the largest contributor.

Existing partners of UREEFF will be provided with sub-loans to keep financing projects for better use of energy. UkrSibbank and OTP Bank will receive €10 million and €7 million respectively.

Along with the extension of the programme, EBRD welcomed Crédit Agricole, a new partner bank, which will receive a limit of up to €1 million.

With a total of approximately €18 million available, the three institutions aspire to fund more than 18,000 projects to be implemented by either individual borrowers or housing associations.

Eligible projects will cover a wide range of energy efficiency improvements, including insulation of walls, roofs and ground floors, installation of modern energy efficient windows; heat supply system upgrades, installation of gas and biomass boilers and the introduction of solar thermal systems.

Since April 2016, UREEFF has channelled approximately €10 million to Ukrainian households for thermal modernisation.

In July, EBRD increased the amount of grants under the programme, with the maximum amount of the grant available per individual being €3,000.

 Sevki Acuner, EBRD Country Director in Ukraine had commented: "By deciding to increase the size of grants up to 35 percent of the total loan amount we aspire not only to help the citizens of Ukraine to insulate and rehabilitate their houses, but also, which is much more important in the long run, to consciously shift to sustainable consumption of energy resources through the use of modern energy-efficient technologies”.

The programme is offering more than 5,000 energy-efficient products and technologies to be implemented with the help of 20 different financial products available from EBRD’s partner banks.

Ukraine is considered one of the least-energy efficient countries worldwide according to the United Nations Development Programme (UNDP).

The country depends on fossil fuel imports for over 50 percent of its energy supplies, but the annual energy waste amounts for more than 9 billion cubic meters of gas due to poor housing insulation and lack of equipment maintenance. This amount of wasted energy could supply heating to more than 4,5 million households per year.

You can learn more about the Residential Energy Efficiency Financing Facility here.