Ukrainian Banks Finance Green Energy on Cash Flow and Equity, Not Equipment Brand

For Ukrainian lenders evaluating renewable energy projects, the manufacturer of turbines or panels matters far less than predictable revenue and a developer’s own stake in the deal, according to Dmytro Lukomsky, head of the Investment Committee of the Ukrainian Solar Energy Association (ASEU).

Equity thresholds set the baseline. New development teams typically need to contribute 40–50% of project capital, while experienced players with a proven track record may qualify for a reduced share of 20–30%. Cash flow predictability shapes how much debt a project can carry: assets backed by long-term power purchase agreements support greater leverage, whereas battery storage projects require a larger equity cushion because price-spread income is inherently volatile.

One structural advantage for Ukrainian developers is cost. Because of domestic liquidity, local bank financing is often cheaper than international alternatives — a dynamic Lukomsky singles out as distinctive to this market. In one publicly cited case in Lviv Oblast, a project secured financing approval in roughly two and a half months.

Risk-mitigation instruments also shape deal structure. The Ukraine Investment Framework provides guarantee-and-grant packages, while project-specific tools — such as a £3.8 million British grant referenced in a wind project example — can function as first-loss coverage for lenders.

War-related insurance costs add further complexity: in some cases they exceed 5% of project costs. For projects from 40 MW or over €50 million, the pool of viable financiers narrows to the country’s largest domestic banks and international financial institutions.

Private investors are entering the sector through cooperatives, committing from one million hryvnias, with operators projecting annual returns of around 15–20% in hard currency — a forecast, not a guarantee. Lukomsky advises factoring lender requirements into project planning from the concept stage to strengthen capital-raising prospects and keep implementation timelines realistic.

Source: АСЕУ