Renewable Energy Solutions (RES)


Sector

Municipal infrastructure and services

Stream

Development and rehabilitation of municipal infrastructure of subnational governments

Entry into Portfolio

State level of SPP

Maturity level

90

General Information

Program Description

One of Ukraine's main priorities is to ensure energy security and sustainable development, including the development of renewable energy, including the procurement and installation of integrated decentralized renewable energy systems, the modernization of energy infrastructure and other critical infrastructure, the restoration of damaged public buildings with the introduction of energy-efficient technologies.

The goal of restoration and reconstruction is to create a decarbonized, energy-efficient, environmentally sustainable and socially oriented infrastructure that will improve living conditions for the population, reduce the country's energy dependence, stimulate local economic development and achieve sustainable development goals. This includes the introduction of modern technologies aimed at reducing energy consumption, adapting to climate change and integrating renewable energy sources.

The goal of recovery and reconstruction is to create a decarbonized, energy-efficient, environmentally sustainable and socially oriented infrastructure that will improve living conditions for the population, reduce the country's energy dependence, stimulate local economic development and achieve sustainable development goals. This includes the introduction of modern technologies aimed at reducing energy consumption, adapting to climate change and integrating renewable energy sources.

The implementation of this Program, with the support of the European Investment Bank, corresponds to the implementation of national strategic documents:

1) Association Agreement between Ukraine and the EU: Directive of the European Parliament and of the Council (EU) 2018/2001 "On the promotion of the use of energy from renewable sources";

2) Presidential Decree No. 722/2019 of September 30, 2019 "On the Sustainable Development Goals of Ukraine for the period up to 2030", namely: p. 7) ensuring access to affordable, reliable, sustainable and modern energy sources for all; p. 11) ensuring openness, security, viability and environmental sustainability of cities and other settlements; p.13) taking urgent measures to combat climate change and its consequences.

3) National Energy and Climate Plan for the period up to 2030.

4) National Renewable Energy Action Plan up to 2030.

5) National Energy Efficiency Action Plan up to 2030.

This Program aims to achieve key results in improving the comprehensive energy efficiency of public buildings through the implementation of energy-efficient renovation measures and the use of renewable energy solutions.

The proposed program consists of two components:

  1. Procurement of equipment and installation services.
  2. Strengthening the capacity of local governments to prepare and implement renewable energy subprojects, including the development of a PCD. Procurement of equipment and installation services.

Component 1 - provides for financing the installation of renewable energy generation facilities from the following possible elements:

  • installation of photovoltaic systems without batteries: suitable roofs, parking lots or integrated facades for the installation of photovoltaic panels;
  • installation of photovoltaic systems with batteries: suitable roofs, parking lots or integrated facades for the installation of photovoltaic panels;
  • installation of solar thermal systems (solar systems);
  • installation of geothermal heat pumps;
  • installation of air-to-water heat pumps.

In general, within the framework of the component, it is planned to install sets of energy generation equipment from renewable sources at approximately 50 facilities.

The implementation of the component will ensure a sustainable energy supply to social infrastructure facilities (security and education institutions), which in turn will allow for stable access to educational and medical services for more than 10 thousand people.

Strengthening the capacity of local governments to prepare and implement renewable energy subprojects, including the development of a PCD.

Component 2 - provides for financing work to strengthen the capacity of local governments to prepare and implement renewable energy subprojects, including the development of a PCD. The component will include procurement of equipment, design, construction, installation and commissioning work.

Expected results of the investment project

In general, the implementation of the Program will make a significant contribution to the recovery and development of the country's economy, its energy and environmental security, will contribute to the rapid European integration of Ukraine, will reduce the negative impact on health care caused by significant destruction in the industry, and will also facilitate the return of people to the liberated, restored regions of Ukraine.

The following measures will be implemented within the framework of the Program:

  • development of design and estimate documentation (DED);
  • procurement of equipment and installation services;
  • monitoring and sanctions screening. The Programme is aligned with the UNDP Ukraine Recovery Framework and will contribute to the achievement of Ukraine’s Sustainable Development Goals for the period up to 2030 in terms of:
  • providing access to affordable, reliable, sustainable and modern energy for all;
  • creating resilient infrastructure, promoting inclusive and sustainable industrialization and innovation;
  • taking urgent measures to combat climate change and its impacts by reducing greenhouse gas emissions.

The indicators for assessing the results of the Programme will be determined after the results of the EIB’s identification of the list of facilities, their approval and assessment, but in general, based on analytical data, taking into account the total cost of the Programme, it is possible to predict the impact on the following indicators:

  • the share of the population that will receive sustainable and reliable access to educational and health services for more than 10 thousand people;
  • the average annual savings on energy costs is more than 80 million UAH per year;
  • the average emission reduction is more than 10 thousand tons of CO2 per year;

The program will contribute to the sustainable development of communities, reducing Ukraine's energy dependence, adapting to climate change and integrating renewable energy sources into local energy systems. It will also contribute to improving the quality of social services, improving living conditions for internally displaced persons, creating new jobs and stimulating local economic development.

The program will have both social and economic and environmental results, namely: it is expected to increase the energy efficiency of social infrastructure facilities, such as hospitals, schools and kindergartens, reduce their maintenance costs, reduce greenhouse gas emissions, and extend their service life.

Strategic Case

Program Goal

Main Goal: Implementation of innovations and energy-efficient solutions
Secondary Goal: Creation of new facilities and services, Modernization to comply with current standards, Contribution to climate or environmental goals
Problems: One of the main priorities of Ukraine is to ensure energy security and sustainable development, including the development of renewable energy, including the procurement and installation of integrated decentralized renewable energy systems, modernization of energy infrastructure and other critical infrastructure, and restoration of damaged public buildings with the introduction of energy-efficient technologies. The goal of restoration and reconstruction is to create a decarbonized, energy-efficient, environmentally sustainable and socially oriented infrastructure that will improve living conditions for the population, reduce the country's energy dependence, stimulate local economic development and achieve sustainable development goals. This includes the introduction of modern technologies aimed at reducing energy consumption, adapting to climate change and integrating renewable energy sources. This Program aims to achieve key results in increasing the comprehensive energy efficiency of public buildings through the implementation of energy-efficient renovation measures and the use of renewable energy solutions. Indicators for assessing the results of the Program will be determined after the results of the EIB's determination of the list of objects, their approval and evaluation, but in general, according to analytical data, taking into account the total cost of the Program, it is possible to predict the impact on the following indicators: - the share of the population that will receive sustainable and reliable access to educational and medical services of more than 10 thousand people; - the average annual savings on energy costs is more than 80 million UAH per year. - the average emission reduction is more than 10 thousand tons of CO2 per year; The Program will contribute to the sustainable development of communities, reducing Ukraine's energy dependence, adapting to climate change and integrating renewable energy sources into local energy systems. It will also contribute to improving the quality of social services, improving living conditions for internally displaced persons, creating new jobs and stimulating local economic development. The program will have both social and economic and environmental results, namely: it is expected to increase the energy efficiency of social infrastructure facilities, such as hospitals, schools and kindergartens, reduce their maintenance costs, reduce greenhouse gas emissions, and extend their service life.

Strategic Relevance of the Program

Sector
Municipal infrastructure and services
Subsector
Development and Reconstruction of Subnational Infrastructure
Stream
Development and rehabilitation of municipal infrastructure of subnational governments
Strategic Document
State Strategy for Regional Development for 2021–2027
Task
Завдання 2 за напрямом “Стимулювання розвитку територій” Оперативної цілі 1. Забезпечення інтегрованого розвитку територій з урахуванням інтересів майбутніх поколінь Development and rehabilitation of municipal infrastructure of subnational governments

Program Objectives

Indicator
Baseline Value
Target Value

Programme Sustainable Development Goals

Economic Case

Economic feasibility of the program

What are the main benefits expected from the implementation of the program for the economy, business, society, or individual industries?

Improving energy efficiency
Other benefits
Improving business conditions
Increasing employment levels, creating new jobs
Growth in production, market volumes of goods/services/investments
Reducing regional imbalances
Infrastructure development
Improving the quality of life of the population
Increase in budget revenues

Does the program objective provide for a contribution to the climate goal of mitigating the effects of climate change?

Reducing or avoiding greenhouse gas emissions
Reducing the use of fuel and energy resources

Does the program objective provide a contribution to the climate change adaptation objective: reducing the impact and/or reducing the vulnerability of an asset or population to one or more types of physical climate hazards?

No contribution is provided.

Does the programme objective provide for a contribution to the climate objective of sustainable use and protection of water and marine resources?

No contribution is provided.

Does the program objective provide for a contribution to the climate goal of transitioning to a circular economy?

No contribution is provided.

Does the programme objective provide for a contribution to the climate objective of pollution prevention and control?

Preventing or reducing emissions of pollutants into air, water or soil

Does the program objective provide for a contribution to the climate goal of protecting and restoring biodiversity and ecosystems?

No contribution is provided.

What social consequences are relevant for your program, after its implementation?

Increasing employment levels
Improving living conditions
Improving access to basic services
Other social consequences
Reducing social inequality

Why is it advisable to implement projects in the format of one comprehensive program, and not separately?

Strengthening the overall impact through the interaction of individual projects within the program
Ability to simultaneously cover several interrelated aspects of a problem and ensure a systematic approach
Cost reduction through pooling of resources and centralized management
Implementing activities within a common or adjacent territory to achieve a more effective result
Ensuring coordinated planning, management and monitoring of projects within a single structure
The need to comply with legal requirements, government strategies or policies
Other

How will the program help strengthen other economic processes or reforms?

Promoting the development of related sectors of the economy
Support for the implementation of state or sectoral reforms
Deepening integration into international economic processes
Stimulating digitalization and innovation
Other

Program Components

Financial justification

Total estimated program cost

755'628'000 UAH

Estimated cost of program components

755'628'000 UAH

Component

Amount

Purchasing agent services

67'750'000 UAH

Purchase of equipment and installation services.

687'878'000 UAH

Cost justification

Short description

Justification document

n/a

Grant Agreement on the provision of technical assistance Renewable Energy Solutions (RES) - Agreement dated 10.02.2025 Budget request.docx

Sources and mechanisms of financial support for the implementation of programs.

Status
Funding mechanisms
Coverage, %

Investment

Non-repayable financing. Grant financing. International (intergovernmental) grant agreement (with a predefined approach for selecting contractors or suppliers).

100%

Justification document
To the documents
What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)

The source of funding for the Renewable Energy Solutions (RES) program is grant funds from the European Investment Bank (EIB).

Management Case

Total program duration (months): 3

Approaches to project selection

Have approaches and criteria been defined for including public investment projects in the program, initiators of such projects, and their prioritization?

Yes

Organizational Measures

Photovoltaic systems with rechargeable batteries have been installed in 27 public buildings

12 months

Photovoltaic systems with rechargeable batteries have been installed in 7 public buildings

12 months

Photovoltaic systems with rechargeable batteries have been installed in 16 public buildings

12 months

Risk Assessment

Risk

Probability

Degree

Strategy

Risk

Failure to comply with integrity requirements. Violation of prohibitions against fraud, corruption, money laundering or other prohibited practices by any program participant.

Probability

Low

Degree

Critical

Strategy

Avoidance

Risk

Low institutional capacity of final beneficiaries. Insufficient experience and qualifications of local government staff to prepare documentation and fulfill the requirements of the international agreement.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

Violation of sanctions restrictions. Unintentionally involving contractors associated with individuals or entities subject to international sanctions in the program.

Probability

Low

Degree

Critical

Strategy

Avoidance

Risk

Limited number of contractors. Insufficient number of qualified contractors in the market.

Probability

High

Degree

Critical

Strategy

Acceptance

Risk

Delay in approval of project documentation. Delays in obtaining approvals from authorities and regulators can delay implementation times.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

Lack of funds for co-financing from beneficiaries. The high cost of the works may require additional funds, which may not be available in local budgets.

Probability

Medium

Degree

Considerable

Strategy

Avoidance

Risk

Insufficient staff qualifications. Low qualifications of staff to maintain new equipment.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

Exchange rate fluctuations when purchasing imported equipment. Increase in the cost of equipment due to the devaluation of the hryvnia.

Probability

Low

Degree

Considerable

Strategy

Avoidance

Risk

Disruptions in equipment supply. Logistical problems caused by hostilities or closure of transport routes.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

Risks associated with war. The threat of hostilities that could damage facilities or disrupt logistics chains.

Probability

Low

Degree

Considerable

Strategy

Reduction

Risk

Regulatory Policy Change: A change in policy regarding tariffs or equipment imports that may affect the cost-effectiveness of the program.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

Non-compliance of equipment with technical requirements. Non-compliance of supplied equipment with stated requirements may lead to malfunctions.

Probability

Medium

Degree

Critical

Strategy

Reduction

Risk

Increase in the cost of construction and installation works. Increase in prices for materials and services during the implementation of the program.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

Disruption of tender procedures. Absence of participants or appeal of tender results.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

Decreased trust in the program. Loss of trust due to delays in program implementation.

Probability

Low

Degree

Considerable

Strategy

Reduction

Risk

Untimely transfer of funds from donors. Delays in payments from donors can halt the implementation of projects.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Program Approval History

DateDecision NumberPortfolioProgram StatusDecisionReasonsMaturity level
11/09/2025SP-N-110925-473452EDState SPPreparationInclude--
28/10/2025SPP-N-281025-3758CF57State SPPPreparationInclude-90