Main points
- The Ukrainian government is launching a business support program for investments in distributed generation with cost compensation.
- Companies will be able to obtain loans at 10% per annum for energy projects with a lending volume of 1 to 25 million euros.
The government will compensate for the costs of distributed generation / Collage of Channel 24, photo by Pexels, Yulia Svyridenko
The Ukrainian government is launching a new business support program to help companies invest in their own energy independence. It involves compensating for part of the costs of building distributed generation facilities – from gas plants to renewable energy sources.
What will be the new energy support for business?
The government is launching a state support mechanism for large and medium-sized businesses to build their own distributed generation, Prime Minister Yulia Svyridenko announced.
According to her, companies will be able to obtain loans at a reduced rate – effectively at 10% per annum – for the implementation of energy projects. The state will compensate for the difference between the market and preferential rates.
Funding is provided for:
- gas turbine and gas piston plants;
- cogeneration systems;
- “green” energy facilities (biomass, biogas, geothermal energy);
- energy storage systems;
- local energy networks and autonomous systems;
The loan amount is from 1 to 25 million euros (for frontline regions – from 500 thousand euros) for a period of up to 5 years. There is also the possibility of deferring payments until the facility is launched, but for a maximum of one year.
The program is scheduled to start on June 1. The National Development Agency will be responsible for implementation, and applications can be submitted through partner banks.
Distributed generation is one of the components of preparation for the next heating season. Our goal is to provide a total of 4 GW of distributed generation across the country for the autonomy of critical infrastructure,
– says Svyridenko.
Why is this important?
After massive attacks on the power system, businesses are forced to provide themselves with electricity. Instead, distributed generation:
- reduces dependence on a centralized system
- increases economic sustainability
- allows you to avoid downtime
What does this mean for businesses? It means cheaper loans, the ability to invest in autonomy, and reduced risks of outages.
Interesting! The program actually stimulates business to solve energy problems independently, but with financial support from the state. This is a new stage in the transformation of the country's energy model.
How will distributed generation help Ukraine during war?
Distributed generation is an approach where electricity is produced not by a few large plants, but by many small ones: micro and mini power plants. This allows you to “disperse” energy production, make the system cheaper and less vulnerable. As Dmytro Kudrya, an expert on energy efficiency and critical infrastructure at the NGO Center for Civic Initiatives “Ltava”, explains, it is important to organize this system correctly, Mind.ua writes.
According to him, today some of the functions that should be performed by communities are actually transferred to business. This creates an imbalance.
Historically, cities and communities have been responsible for people's basic needs – water, heat, infrastructure. For this, there is local self-government, elected by residents. It is they who should manage such processes, not just the state or business.
After decentralization, communities have received more powers and resources, so they can play a key role in energy sustainability. The expert emphasizes: the most effective model is cooperation between all parties: state + local authorities + business + population.
By involving all 1,400 or so communities, the development of distributed generation will be much faster and more extensive than if businesses were to rely solely on it. At the same time, many cities are already moving in this direction, installing solar power plants for their own needs with the support of the state and international partners.
What will happen to Ukraine's energy sector in the summer of 2026?
As energy expert Yuriy Korolchuk said in a commentary on Channel 24 , even in the event of abnormal heat, large-scale power outages are unlikely, so a repeat of the situation of the summer of 2024 should not be expected.
According to the expert, the summer of 2024 was difficult due to the coincidence of several factors :
- damage to thermal power plants due to Russian shelling;
- removal of nuclear power plant units for repair;
- abnormal heat;
- active consumption of electricity by industry;
- lack of major repairs at damaged substations.
The expert cites several scenarios with power outages in the summer, which will depend on the weather and Russian attacks.
Yuriy Korolchuk
Expert of the Institute of Energy Strategies
If there is abnormal heat, there may be outages, but not as much as in 2024. A maximum of 7-8 hours a day during peak hours. That is, not at night or during the day, because during the day solar generation will cover the needs. If the summer is normal, then perhaps the restrictions will be for industry first of all. If the population is restricted, then for 3-5 hours. Everything will depend on the region and districts. If there are shelling of thermal power plants and substations, then we can already talk about longer outages.
According to Yuriy Korolchuk, distributed gas generation can partially cover the problems, but it is not able to save the situation. Everything will depend on the price of gas.
Energy expert Volodymyr Omelchenko, in a comment to Channel 24, noted that the key factor in the issue of possible power outages in the summer is the war. Therefore, given the possibility of further shelling, there is a chance of a repeat of the summer 2024 scenario.
Volodymyr Omelchenko
Director of Energy Programs at the Razumkov Center
The main factor affecting Ukraine's energy security is war. We don't know the plans of the Russian General Staff. Will they attack energy infrastructure en masse in the summer or closer to winter? How many ballistic capabilities do they have, how many air defense missiles do we have? These are the main factors. Everything else has less of an impact.
According to the expert, Ukrenergo and generating companies are currently working to ensure that the summer passes with a minimum of power outages, but it is impossible to predict anything.