Oschad calls on businesses to cooperate in implementing green generation projects

With the partnership of Oschadbank, more than 833 MW of installed capacity of green generation has been built in Ukraine, which is about 1% of the country's total generation before the outbreak of the full-scale war. Oschad is one of the leaders in financing alternative energy projects. This was stated by Yuriy Katsion, Deputy Chairman of the Board of Oschadbank in charge of corporate business, during his speech at the EBA_NABU conference "Finance for Business in Time of War".

He drew the attention of big business representatives to the steady increase in demand for green electricity, both domestically and abroad. This is evidence that now is the right time to invest in green generation. Previously, private business investments in alternative energy were primarily driven by green tariff preferences, but now, after two years of the full-scale war, there are other drivers of the industry.

"Today, the main motivator for green projects is energy security, the ability to provide our own production facilities with in-house energy and its cheaper price amid rising tariffs. Own generation can significantly replace electricity purchased on the market, up to more than 60% of consumption, depending on the company's production cycle. Another important factor is the financial component of these projects. They have become self-sufficient, as the payback period of local generation projects, according to our customers, is 5-6 years at current market tariffs. The unification of the energy markets of Ukraine and the EU has provided an additional impetus to the industry, as electricity has become a new business niche for export trade with our European neighbors, where electricity tariffs are historically higher. Businesses see investments in green energy as a very promising area for the near future, even under martial law. And we at Oschad, having experience in financing the construction of large green energy facilities, will be happy to support such projects," said Yuriy Katsion, Deputy Chairman of the Board of Oschadbank in charge of corporate business.

Financing green energy has been a priority in the last decade, given global climate change. The social significance of this topic is undeniable, both in terms of the country's energy security and the preservation of its environment, which has been significantly undermined, among other things, by the hostilities on our territory. Last year, the EU increased electricity production at hydroelectric and nuclear power plants by 56 GW and built a record number of wind turbines and solar panels, which is 40% more than in 2022. In Ukraine, according to the Ministry of Energy, 156 MW of wind generation, 115 MW of solar power plants and 41 MW of biogas plants were added to the grid in 2023. This gives positive expectations for global changes in electricity production from alternative sources.