Denmark will provide Ukrainian cities with loans of up to €100M for energy-efficient projects that have been unable to attract investors.

The Ukrainian government has approved a procedure for selecting projects enabling energy efficiency, energy saving, and alternative fuels, which will be financed within the Danida Business Finance program through the framework agreement between the governments of Ukraine and Denmark.

The program aims to solve infrastructural problems and provides municipalities with interest-free loans for up to 10 years. The minimum project cost is €13.5M, and the maximum is €100M.

The program’s main feature is that the funds will be directed exclusively to commercially unviable projects for which it is impossible to find investors. This applies to projects in energy efficiency, renewable energy, heat supply, water supply, water purification, and other essential areas. The State Energy Efficiency Agency is already working on a preliminary list of potential projects for financing.