Financial support from Finland for renewable energy development in Ukraine

Andriy Levkonyuk, Team Leader (Ukraine), Finnish Consulting Group presenting the Finland Ukraine Trust Fund. Photo: NEFCO

The Finland Ukraine Trust Fund, which provides financial support to both private and public energy-related projects in Ukraine, has been launched and has received much interest in both countries. The new programme aims to increase cooperation between Finland and Ukraine and to introduce Finnish innovations in the field of clean energy.

Various project proposals are currently under pre-evaluation. Small and medium-sized enterprises can apply for funding for both private and public projects related to energy efficiency, renewable energy and alternative types of energy sources in power and heat generation. Support for technical assistance can also be allocated from the fund.

The Trust Fund shall promote cooperation and identify opportunities for projects, both consultancy services and investments. The total value of the fund is EUR 6 million, and it is financed by the Government of Finland, which has increased its support for Ukraine.

“Ukraine has vast energy infrastructure with opportunities to improve efficiency and incorporate renewable energy sources. There is both the political will and financial tools available for large-scale investments in renewable energy, circular economy and energy efficiency solutions, but policy bottlenecks need to be addressed to improve investor confidence. We hope to introduce both robust technologies and more innovative approaches that can be scaled up in a national context. The result will be affordable and reliable energy services to the people in Ukraine, leaving no one behind. Appropriate selection of technologies will also ensure financial and environmental sustainability“, said Henri Horn, Senior Energy Advisor, Department for Development Policy at the Ministry for Foreign Affairs of Finland.

The fund was presented today at the Nordic Green to Scale event in Kyiv, where Nordic solutions and new financing opportunities within the fields of renewable energy and energy efficiency were discussed.

NEFCO has been financing energy-related projects in Ukraine for more than ten years and is administering the Finland Ukraine Trust Fund.

“Our cooperation with the Ministry for Foreign Affairs of Finland has been very fruitful over the years. Within this fund we aim to finance transformative and environmentally sustainable projects related to renewable energy in particular,” said NEFCO’s Managing Director Magnus Rystedt in Kyiv today.

The main coordinator in Ukraine for the Finland Ukraine Trust Fund is the State Agency on Energy Efficiency and Energy Saving (SAEE). The Finnish Consulting Group (FCG) has been engaged by NEFCO to manage and coordinate the practical work related to project origination, evaluation and implementation.

More information about the Finland Ukraine Trust Fund can be found here

The new trust fund is a continuation of the cooperation that NEFCO and the Ministry for Foreign Affairs of Finland started in 2014 with the Finnish trust fund for the Nordic Energy Efficiency and Humanitarian Support Initiative for Ukraine (NIU). The NIU initiative was signed by all the Nordic Ministers for Foreign Affairs in connection with the Nordic Council Session in Stockholm in October 2014.

More information:

Helena Lähteenmäki, Senior Investment Manager, NEFCO
helena.lahteenmaki [at] nefco.fi, tel: +358 10 6180 633

Juhani Toivonen, Ambassador, Development Policy Adviser,
Ministry for Foreign Affairs of Finland
Juhani.Toivonen [at] formin.fi, tel. +358 295 350 898

About the Government of Finland
The support from Finland to Ukraine, consisting of project financing, funding to international organisations, humanitarian aid, crisis management and expert secondments, has been EUR 37.6 million since 2014. In addition, Finland supports Ukraine through the European Union, the International Monetary Fund and the World Bank. Read more at www.formin.fi


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