Sector
Energy Sector
Stream
Construction of new generating capacities
Maturity level
93
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion
- General information
- Strategic Case
- Economic Case
- Commercial Case
- Financial Case
- Management Case
- Summary
General information
Description of the project
The project involves installing a 34.8 kW solar power plant (SPP) on the roof of the Buchanan City Council building in order to partially provide the administrative building with its own electricity from renewable sources. The SPP will annually produce about 37.45 MW·h of electricity, which will reduce electricity consumption from the grid and reduce the city budget's energy supply costs. The system includes a battery energy complex with a capacity of 40.8 kW·h (8 battery blocks), which ensures the accumulation and use of energy during peak load hours or during power outages. The implementation of the project will contribute to increasing the energy efficiency of municipal infrastructure, developing sustainable energy, and reducing CO₂ emissions.
The purpose of the project
Main goal:
Introducing innovations and energy-efficient solutions
Secondary goal:
Increasing compliance with modern standards
Description of the purpose of the project and ways to achieve it
The goal of the project is to increase the energy efficiency and energy independence of the Buchanan City Council through the use of renewable energy sources.
To achieve the goal, it is planned to install a 34.8 kW solar power plant on the roof of the city council building with a 40.8 kWh energy storage system, which will provide annual generation of about 37.45 MWh. The implementation of the project will allow partially to meet its own electricity needs, reduce the city budget, reduce greenhouse gas emissions and increase the stability of energy supply in the event of possible outages.
The project will contribute to achieving sustainable development goals, in particular in terms of clean energy, energy efficiency and climate resilience of the community.
Problems and solutions resulting from project implementation
Problems: high energy consumption of the building and significant costs of paying for electricity from the local budget; dependence on centralized electricity supply, which leads to the risk of interruptions in the work of administrative services in the event of accidents or outages; lack of energy-efficient technologies; insufficient contribution to achieving sustainable development goals, in particular in the field of clean energy and climate neutrality.
Expected results: reduction of electricity consumption from the grid; ensuring energy independence of the building thanks to the operation of a 34.8 kW solar power plant and a 40.8 kWh storage system; reduction of energy costs and reduction of CO₂ emissions; ensuring uninterrupted operation of critical city council systems during power outages; demonstration effect for spreading the practice of implementing "green" technologies in the community.
Socio-economic context
Indicator
Value
Other functional
55000 units
Number of IDPs in the geographical area of impact of the project
11 thous. people
Population in the geographical area of influence of the project
70 thous. people
Strategic Case
Strategic feasibility of the project
Sector
Energy Sector
Subsector
Electric power industry
Stream
Construction of new generating capacities
Strategic document
Стратегія розвитку територіальної громади
Task
A.2.5.1. Development of distributed generation of electricity (including cogeneration plants) and stimulation of the implementation of projects based on renewable energy sources
Project objectives
Project objectives were not specified by the initiator
Project Sustainable Development Goals
Demand for the service and its dynamics
What methodology was used to estimate demand?
Comprehensive approach
[Response was provided in the Preliminary Investment Feasibility Study]
Has data from external sources been used in the demand assessment?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Does the demand forecast take into account the latest demographic and economic forecasts?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
80000 kWh
Economic justification
Analysis of the project's impact on ecology and climate change
Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?
Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]
Is the proposed project expected to significantly harm any of the following climate or environmental objectives?
None of the options are applicable
Project sustainability and inclusivity
Identify potential gender risks of the project and indicate possible ways to overcome them:
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Does the project provide for improving women's access to services?
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Are civil society organizations representing women and vulnerable groups included in the consultation process?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Alternative technical solutions
Technical Solution 1
Installation of a solar power plant on the roof of the Buchanan City Council building (using a hybrid inverter)
Technical Solution 2
Installation of a solar power plant on the roof of the Buchanan City Council building (without using a hybrid inverter)
Total costs2'550'512 UAH1'068'133 UAH
Average annual costs54'350 UAH49'350 UAH
Project duration, incl.8 months8 months
Service life300 months300 months
Target indicatorsDefined Defined
Technical Solution Status
Active
[The technical approach was selected for further detailed analysis or implementation.]
Rejected
[The technical approach was not selected for further detailed analysis or implementation.]
Components of a technical solution
Commercial Justification
Supplier and contractor market assessment
Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Is the project of interest to small and medium-sized enterprises?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Will the project involve national or international suppliers and contractors?
Yes, both national and international
[Response was provided in the Preliminary Investment Feasibility Study]
Has an analysis of available procurement options been conducted for the technical solution?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Financial justification
Total project budget
Total preliminary budget2'550'512 UAH1'068'133 UAH
Capital costs2'550'512 UAH1'068'133 UAH
Operational costs0 UAH0 UAH
Preliminary cost breakdown
Operating costs for implementation0 UAH0 UAH
For preparation500'000 UAH300 UAH
For implementation1'995'512 UAH1'022'833 UAH
For operation25'000 UAH20'000 UAH
For closing30'000 UAH25'000 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Investment Feasibility Study]
Average project cost per service recipient
Service UnitОрієнтовна собівартість виробленої електроенергії
Service Unit Cost4 UAH
Profitability of the project
Is the project expected to generate income?NoNo
Availability of services
Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
Yes – the analysis was conducted, it was found that the tariffs correspond to the financial capabilities of consumers
[Response was provided in the Preliminary Investment Feasibility Study]
Project Financing Mechanisms
Are funding sources and mechanisms identified?
Source and MechanismYesNo
Funding Sources
Approved Funds0 UAH0 UAH
Expected Funds0 UAH0 UAH
Public-private partnership
Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
No, no assessment was conducted.
[Response was provided in the Preliminary Investment Feasibility Study]
Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Management Rationale
Team competencies
Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
Strategic justification - analysis of the strategic feasibility of the project
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - communication with stakeholders
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - risk management
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - social and gender analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - public consultations
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of available procurement options
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - legal support
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - SDG compliance analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Financial analysis - financial analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - demand analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of the market environment
[Response was provided in the Preliminary Investment Feasibility Study]
Does the team have experience implementing similar projects?
Yes, successfully implemented 1 or more similar projects
[Response was provided in the Preliminary Investment Feasibility Study]
Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
Economic feasibility study - technical expertise
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - environmental expertise
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - economic analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Is there an understanding of where to find relevant experts and consultants?
Partially, we are considering options
[Response was provided in the Preliminary Investment Feasibility Study]
Risk assessment
Technical riskDefinedUndefined
Financial riskDefinedUndefined
Economic riskDefinedUndefined
Political riskDefinedUndefined
Social riskDefinedUndefined
Operational riskDefinedUndefined
Market riskDefinedUndefined
Environmental riskDefinedUndefined
Other riskDefinedUndefined
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs
Does the project require additional preparation assistance from Project Preparation Facilities (PPF)?
Finalization of existing documentation for the preparation of a preliminary feasibility study
[Response was provided in the Investment Feasibility Study]
Updating existing documentation regarding the preparation of the feasibility study
[Response was provided in the Investment Feasibility Study]
Updating existing documentation regarding the preparation of design and estimate documentation (DED)
[Response was provided in the Investment Feasibility Study]
Project Approval History
DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
17/11/2025SP-L-171125-435E0E19Community SPInvestment Feasibility StudyCancellation of the decision to include in a joint venture--
25/11/2025SP-L-251125-DDCD6961Community SPInvestment Feasibility StudyInclude--
11/12/2025SPP-L-111225-B7F0E49CCommunity SPPInvestment Feasibility StudyInclude-93