Financing improvements

STATE PROGRAMS AND GOVERNMENT PROJECTS

• State Agency for Energy Efficiency and Energy Saving: individuals, HOAs and Housing Building Cooperatives to be partly reimbursed for the cost of energy efficiency improvements (in Ukrainian; April 2015) - as stipulated by the GOU Decree #231 "On changes to GOU Decrees #243 of March 1, 2010, and #1056 of October 17, 2011" dated April 8, 2015 (GOU Decree #231 in Ukrainian)
• Subsidized loan facility program to finance housing and utility repairs and reconstruction for legal entities, including HOAs. Loan period: up to 10 years; loan interest rate: 3% per annum. Detailed terms and conditions are given in the Decree of the Cabinet of Ministers of Ukraine #599 "On approval of the procedure for the use of funds provided by the State budget for subsidized financing of legal entities, including HOAs, for reconstruction, capital and current repairs of objects of housing and communal services" from May 31, 2012 (in Ukrainian) (not effective since 2012)
• State Fund for Promotion of Youth Housing Construction (not effective)

MUNICIPAL INITIATIVES

• Dnipropetrovsk Oblast Council co-finances EE projects in multi-family residential buildings with HOAs and Housing and Building Cooperatives - winners of the competition for mini-projects to increase energy efficiency of residential buildings - in the framework of the Program to support community initiatives regarding development of territories during 2012-2016 in Dnipropetrovsk (in Ukrainian)
• Program for support of the population of Lviv Oblast in energy efficiency improvements for 2013-2016 (in Ukrainian) (approved by the Decree of Lviv Oblast Council #680 of February 19, 2013): an interest rate 15% per annum is reimbursed for the loans received for energy efficiency improvements, and an interest rate 20% per annum is reimbursed for the loans received for the use of alternative sources of energy. Program operators: local banks – Bank Lviv, Oschadbank, Ukrinbank, Oksi Bank, Brokbiznesbank, local credit unions – Anisia, Vigoda, Samopomich, Dovira, Jednannia, Boykivschina, Shans, Gildia Vuglekopiv, L’vivska.
• Energy Efficient Building Step by Step: a program for encouragement of residential energy efficiency improvements in buildings with HOAs in Vinnytsia for 2012-2020" (in Ukrainian). Two scenarios of energy efficiency financing: when the cost of procurement and installation of thermal regulators, heat meters, and individual heating units is shared between a HOA, a leasing company, and the local buget of Vinnytsia; and when the cost of fulfillment of energy efficiency works is shared between a HOA, a municipal fund for financing energy efficiency measures in housing, a partner bank, and the local budget of Vinnytsia.
• Сo-financing residential energy efficiency improvements in buildings with homeowners associations and housing and building cooperatives, Kyiv (Decree #865/865 of Kyiv City State Administration “On approval of the Regulation on the competition for selection of energy efficiency projects in residential buildings with homeowners associations and housing and building cooperatives” dated December 26, 2014).
• Vinnytsia Municipal Investment Fund (in Ukrainian) provides loans for the local utility companies and HOAs for energy efficiency improvements: up to 20% of the total cost of energy efficiency measures for 5 years at an interest rate of 10% per annum
• Residential EE Program "TEPLY DIM" in Kamenets-Podilsky (in Ukrainian) (co-financing EE improvements from local authorities and building residents as 50:50).

OTHER INITIATIVES AND OPPORTUNITIES

• German Embassy in Kyiv: grants to support energy efficient micro-projects (application form)
• Revolving Fund for Support of Energy Efficiency Improvements, Voznesensk (established in 2012)
• Affordable Heat - Energy Efficiency Fund of Burshtyn (funding: DTEK)

BANK PROGRAMS FOR ENERGY EFFICIENCY FINANCING

Loans for HOAs and Housing Cooperatives

• Lviv Bank: reimbursement of interest for loans received for energy efficiency improvements
• Megabank: financing energy efficiency projects
• Metabank: non-colateral loans for reconstruction and capital and current repairs
• OKCI BANK: a financial program for HOAs
• OSCADBANK: EE loans for HOAs (in Ukrainian)
• Ukrgazbank: an offer for HOAs for implementation of investment and innovation projects
• GRESA-GROUP and Ukrgazbank: loans for energy efficiency equipment (interest rate starts from 3%, period: up to 60 months) (bioboilers, electric boilers, solar panels, heat pumps, wind generators, heaters, etc) (since December 2014) (contact details: info@ggc.com.ua, +38(067) 465 8755, +38(044) 408 0077)
• Ukrinbank: loans for building and assembly works

Loans for individuals

• Kredobank: home renovation loans (in Ukrainian)
• Radical Bank: home renovation loans (in Ukrainian)
• Energobank: home renovation loans
• Kredobank: credits for repairs/refurbishment of property
• Lviv Bank: credits for energy efficiency for individuals

INTERNATIONAL DONOR ACTIVITIES AND PROJECTS

• IQ energy is a facility created by EBRD to foster EE improvements in the Ukrainian residential sector. IG energy is supported by donors in providing technical assistance and incentives (launch year: 2016)
• EUROPEAN UNION (EU): Eastern European Energy Efficiency and Environment Partnership Fund (E5P)
• EUROPEAN UNION (EU): Energy Saving Initiative in the Building Sector (ESIB)
• GERMAN FINANCIAL COOPERATION (KfW): financial and technical assistance to ProCredit Bank for energy efficiency lending to MSMEs and households
• GERMAN INTERNATIONAL COOPERATION (GIZ): Energy Efficient Pilot Project (2009-2013); Energy Efficiency in Buildings (2007-2013)
• INTERNATIONAL FINANCE CORPORATION (IFC): Ukraine Residential Energy Efficiency Project
• NEFCO
• DemoUkraina DH (Energy Efficiency Demo Projects in Ukrainian District Heating Sector)
• Swiss Agency for Development and Cooperation (SDC)

USEFUL LINKS

Reports and publications

• GIZ Report "Financing Energy Efficiency in Buildings in Ukraine: Analysis and Policy Recommendations" (2013)
• Manual "Thermal Modernization of Housing Stock: Organizational, Legal, Social, Financial and Technical Aspects" (2013)

Best practices

• Modernization of multifamily buildings in Lithuania by using JESSICA financial instrument in Lithuania