12 January 2021


It is a Danish political priority to support the development in Ukraine and Georgia. As part of the Danish Neighbourhood Programme, IFU can offer risk capital and grants for energy efficiency and renewable energy projects.

Both Ukraine and Georgia are seeking a higher degree of energy independence and have the ambition to promote renewable energy and energy efficiency. Ukraine has set the target to achieve 25 per cent renewables by 2035. Georgia is working on supplementing its hydropower facilities, which is a seasonal energy source only ensuring full self-reliance for one quarter of the year.

It opens business opportunities for companies with relevant know-how, technology and services. To balance risk in less mature markets, IFU is ready to assist current and new partners by offering equity and loan financing on commercial terms and grants for project development.

Managing the Neighbourhood Energy Investment Fund
IFU is managing the Neighbourhood Energy Investment Fund (NEIF), which is capitalised by the Danish Government. The purpose is to promote private investments in energy efficiency and renewable energy projects in the two countries. In general, the following types of projects are eligible:

  • Energy efficiency projects: energy efficiency improvement, production of materials or equipment solely dedicated to generating higher energy efficiency levels;
  • Renewable energy projects: generation of energy from renewable resources, including waste;
  • Suppliers to renewable energy projects: supporting the production of products or equipment for generation of renewable energy;
  • Other projects that can provide substantial mitigation effects compared to common industry standards in the country, e.g. transport.

To obtain equity or loan financing through NEIF, projects must be commercially viable and offer a return to investors.

Risk capital and grants
IFU has solid experience from close to 60 investments in Ukraine, of which five are within wind and solar energy with a total capacity of more than 375 megawatts. One investment is Yavoriv Solar, which is a 72-megawatt solar park expecting to produce 60 GWh annually and reduce CO2 emissions by around 500,000 tCO2e during its lifetime.

Yavoriv Solar has obtained loan financing of DKK 50m through NEIF and IFU. Moreover, Yavoriv has been supported by a NEIF grant covering expenses for e.g. due diligence and legal costs. The grant facility is an integrated part of NEIF with the purpose of developing new projects or providing technical assistance to existing businesses wanting to implement energy saving programmes, for example.

The NEIF grant can finance up to 75 per cent of expenses covering e.g.:

  • Recruitment of professionals and management support
  • Market research, identification of technology suppliers
  • Assessments and feasibility studies, including on how to increase EE, etc.
  • Business plan development
  • Due diligence and risk assessments
  • Energy audits of existing companies and consultancies for energy saving reviews
  • Required permissions
  • ESG initiatives
  • Training plans for know-how transfer, etc.

Call us
If you want to learn more about how IFU can assist you in providing risk capital and grants for energy efficiency and renewable energy projects in Ukraine and Georgia, please do not hesitate to contact:

Anastasiia Erichsen, Investment and Administrative Supporter
Tel : +45 33 44 12 24