Financing Renewable Energy Projects in Ukrainian Municipalities

by NGO Ecoclub

Ecoclub’s scoping study titled “Financing Renewable Energy Projects in Ukrainian Municipalities” delves into the effectiveness of existing financial support mechanisms for municipalities and offers strategic insights into structuring financial aid to bolster the development of small-scale renewable energy sources (RES) within municipal sectors.

Key Findings of the Study:

• Technical and Economic Viability: The study provides a technical analysis of various types of renewable projects and evaluates their feasibility across municipal infrastructures, including water utilities, hospitals, and kindergartens.

• Financial Instruments Analysis: An examination of current financial instruments and programs reveals insights into potential sources of project financing. This includes municipal funds, state support, energy performance contracts, loans from Ukrainian banks, and funding from international financial organizations.

• Risk Assessment: Potential financial, technical, and regulatory risks and barriers are identified, offering municipalities a clear view of the challenges they may face and recommendations on how to navigate these obstacles effectively.

• Strategic Recommendations: The study concludes with strategic recommendations for municipalities aimed at optimizing the structure of financial support to overcome current challenges and accelerate the deployment of renewable energy projects.

This study not only outlines the existing opportunities but also the pressing need for tailored financial programs that can address the unique challenges faced by municipalities in financing RES projects. As Ukraine continues to navigate the complexities of its energy transition, particularly in the context of ongoing conflicts, this study serves as a tool for policymakers, municipal leaders, and international donors committed to supporting sustainable energy solutions.