Demand for Energy Independence Among MSMEs is Growing: Oschadbank Has Financed 1,640 Energy Projects Totaling UAH 3.6 billion

Micro, small, and medium-sized enterprises are increasingly investing in energy independence. In recent years, demand for financing energy projects with Oschadbank has grown from almost zero in 2022–2023 to billions. In total, the Bank has already financed 1,640 energy projects for MSMEs totaling UAH 3.6 billion, which is equivalent to approximately 250 MW of capacity. Denys Samchuk, Deputy Director of Oschadbank’s MSME Sales Department, announced this during the Energy Club forum “Energy of Freedom: Resilience and New Opportunities in Ukraine’s Energy Storage Market,” held on September 17 in Kyiv.

According to him, the structure of demand for energy solutions is also changing. Earlier, solar power plants accounted for about 60% of the financed projects. In recent years, businesses have increasingly sought financing for battery energy storage systems (BESS). Some of these projects involve installing storage systems at existing solar power plants, while new requests increasingly concern integrated solutions that combine solar generation and energy storage.

“We see that demand for energy projects from MSMEs has already become systemic. While it was practically nonexistent in 2022–2023, today we’re seeing billions of hryvnias in financing each year. At the same time, businesses are shifting from standalone solutions to integrated energy infrastructure, where storage systems are playing an increasingly important role,” noted Denys Samchuk.

In 2024–2025, Oschadbank financed MSME energy projects worth approximately UAH 1 billion per year, and in 2026, the volume of such financing reached about UAH 2 billion.

For the Bank, when evaluating a BESS project, the key factor is not the technology itself, but its economic viability and the company’s ability to service the loan. Oschadbank analyzes the business’s financial position, the client’s own contribution, the quality of the equipment, and the supplier’s reputation, as well as the specific problem the energy storage system is intended to solve.

“For us, a BESS is ‘bankable’ when we see a tangible economic benefit for the client’s core business. We don’t just finance a battery; we finance a solution designed to make the business more efficient and energy-resilient,” explained Denys Samchuk.

The economic benefit of using a BESS system can come from reduced electricity costs, more efficient use of on-site generation, optimization of peak loads, backup power, and reduced losses from downtime.

One of the most recent examples of this approach was a project to build a large solar power plant in Khmelnytskyi region equipped with an energy storage system. An increasing number of inquiries are specifically related to storage systems installed at existing solar power generation facilities.

Oschadbank’s partnership programs with equipment manufacturers and installers play a key role in financing energy projects. For projects submitted by the Bank’s partners, the evaluation process may be faster, as the equipment and supplier have already undergone the necessary vetting. For projects submitted by non-partner suppliers, the Bank conducts further independent verification.

Among the tools for supporting MSMEs, Oschadbank utilizes the government program “Affordable Loans 5-7-9%,” partnership programs with energy equipment manufacturers, and guarantee instruments from international financial organizations and the government. According to Mr. Samchuk, these guarantee mechanisms enable the Bank to mitigate the risks associated with financing MSME energy projects.

War-related risks still pose a particular challenge for energy investments. The Bank utilizes guarantee mechanisms to partially cover these risks, while for the client, one of the risk mitigation mechanisms is war risk insurance. A government cost-reimbursement scheme is also available for such insurance.

“Our task as a bank is to make financing energy solutions as clear as possible for entrepreneurs. We see that BESS is gradually transitioning from the category of a new technological solution to that of a full-fledged investment for businesses – in their energy independence, efficiency, and operational continuity,” summarized Denys Samchuk.