63 Million Hryvnias for 140 Businesses: Results of the Project to Support Energy Resilience for Micro and Small Enterprises in Ukraine were Presented

As part of the project «ENERGY RESILIENCE SUPPORT FOR MICRO AND SMALL ENTERPRISE IN UKRAINE» (hereinafter – the project), Ukrainian micro and small enterprises have received UAH 63 million in grant funding to enhance their energy independence.

More than half of the total amount (57%) was spent on installing renewable energy systems, primarily solar panels. A further 15% was allocated to energy storage solutions (i.e. inverters), 8% to energy-efficient equipment and 7% to generators.

The total installed capacity of all energy systems reached 4,764 kW.

These results were presented at an official event in Kyiv.

When allocating support, priority was given to regions that had suffered the most extensive destruction as a result of Russia’s military aggression. The largest number of grants were awarded to the frontline regions, such as the Dnipropetrovsk (17.4%), Sumy and Kharkiv oblasts, as well as the border regions of Lviv and Volyn. This reflects the resilience of Ukrainian businesses and the determination of the Ukrainian people to continue working in their homeland.

The majority of grants were awarded to businesses in the manufacturing, trade, construction, and hospitality sectors.

The project is implemented under the ReACT4UA programme, which is funded by the Norwegian Agency for Development Cooperation (NORAD) and the German government, and is being implemented by the German federal company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

«This project has demonstrated that Ukrainian small businesses can adapt and flourish in times of war when they are given the right support. Through our initiative, 140 enterprises received funding to install decentralised energy solutions. This has allowed them to continue operating during blackouts and has helped to preserve and create jobs, including for veterans and internally displaced persons. A decentralised energy system based on renewables is about more than just energy efficiency – it is about resilience, security and sustaining Ukraine’s economic foundation», emphasized Hagen ETTNER, Program Director ReACT4UA.

The project’s goal went beyond simply issuing grants or purchasing generators. It aimed to support businesses in building long-term energy resilience by providing them with energy-efficient technologies, modernization of production processes, and development of self-sustaining power generation systems.

«By supporting micro and small enterprises to become more energy resilient, we’re building a stronger economy. The project has demonstrated that even businesses in frontline regions are willing to invest in their energy independence. To help them adopt modern, effective solutions, the Ministry of Economy, in collaboration with the Green Transition Office, has launched the Green Platform on the ‘Made in Ukraine’ portal – an online catalogue of green finance tools that helps businesses and communities access resources for sustainable modernisation and energy-saving projects», said Andrii TELIUPA, Deputy Minister of Economy, Environment and Agriculture.

Small and medium-sized enterprises have become frontrunners in adopting energy-saving technologies, such as switching to solar power and installing storage systems, in order to reduce their dependence on an unstable and damaged power grid.

«Each grant from our international partners aimed at supporting the energy resilience of small businesses is about more than just about saved kilowatts in the context of a full-scale war when Russia is trying to completely destroy the Ukrainian energy infrastructure. These are saved jobs, the stable enterprise operations and development, and most importantly, they invest in the country’s economic and financial resilience of the country», said Yuriy  DRAGANCHUK, Deputy Minister of Finance of Ukraine for European integration.

The program was implemented by the Business Development Fund (BDF) through four banks: JSC «Oschadbank», JSC «Sense Bank», JSB «Ukrgasbank» and JSC Bank Lviv.

«The Business Development Fund has already proven its ability to respond quickly and effectively to urgent challenges. Thanks to support from international donors, Ukrainian businesses have received tens of millions of hryvnia to help them rebuild, modernise, and enhance their resilience under extreme conditions», said Valeriy MAYBORODA, First Deputy Chairperson of the Board of the Business Development Fund.

Since the start of the full-scale war, the Business Development Fund has launched 17 new business support programs. In cooperation with international partners, the Fund will continue to implement tools to help entrepreneurs adapt to the crisis, safeguard jobs, and stimulate economic recovery.

The project “Energy resilience support for micro and small enterprise in Ukraine” is implemented under the ReACT4UA programme (Utilization and Implementation of the Association Agreement between the EU and Ukraine in the field of Trade). The international cooperation programme is co-financed by the German government and the Norwegian Agency for Development Cooperation (Norad) and implemented by the German federal company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The project is realised by the Business Development Fund (BDF) and aims to increase the resilience of the Ukrainian economy to recurrent power outages and ensure the business continuity of micro, small and medium-sized enterprises (MSMEs) by financially supporting solutions for uninterrupted access to electricity.