To promote the development of distributed generation in the private sector, the Cabinet of Ministers has announced a new state support mechanism. Large and medium-sized businesses will be eligible for partial compensation of interest rates on loans for the construction of new facilities—ranging from energy storage systems to biogas plants.
According to the Cabinet of Ministers of Ukraine, the initiative will be implemented by the National Agency for the Implementation of Sustainability Plans.
The state will compensate for the difference between the market rate and the preferential rate. In effect, businesses will be able to secure financing at 10% per annum.
Which projects does the mechanism apply to?
The government has stated that compensation can be expected for the construction and commissioning of the following energy facilities:
- gas turbine and gas piston power plants, including cogeneration plants;
- renewable energy facilities (biomass, biogas, geothermal energy);
- energy storage systems;
- microgrids and local off-grid power systems.
Support is available for loans ranging from €1 million to €25 million in hryvnia equivalent. For construction in frontline areas, the maximum loan amount will be €500,000.
The loan term must not exceed five years. A grace period of up to 12 months is possible for commissioning.
The program launches on June 1, and applications to participate can be submitted through authorized banks.
"Distributed generation is one of the components of preparing for the upcoming heating season. Our goal is to ensure a total of 4 GW of distributed generation across the country to ensure the autonomous operation of critical infrastructure," said Prime Minister Yulia Svyrydenko.
According to the head of government, since the start of work on implementing the Resilience Plans, Ukraine has already added 162 MW of new capacity.
EcoPolitics previously reported that during 2025, Ukraine added 1.5 GW of solar generation and over 320 MW of wind generation.
