Facility for Energy Saving Credits

The Energy Saving Credits (ESC) loan programme offers small scale financing to municipalities in Armenia, Belarus, Georgia, the Republic of Moldova, Russia and Ukraine for investments in social facilities such as day-care centres, schools, hospitals and street lighting.

The funding can be used for energy saving measures in connection to the refurbishment of public buildings and modernising of the street lighting. The energy saving measures can include renovation of heat sub-centrals, installation of individual heat substations, insulation of walls, ceilings, pipes and replacement of doors and windows to energy-efficient alternatives as well as replacement of fluorescent and mercury-vapour fixtures with environmentally friendly LED lights.

The Nordic Initiative for Energy Efficiency and Humanitarian Support – Ukraine (NIU) also finances municipal projects for energy-efficiency improvements in public buildings in five regions in Eastern Ukraine. Read more about this programme here.

Focus is on:

  • Renovation of social facilities to reduce energy consumption and increase the lifetime of the buildings
  • Annual heat energy savings of approx. 30-45%
  • Environmental savings, such as reduction of CO2, nitrogen oxide, sulphur dioxide and dust emissions
  • Annual cost savings of approx. 25% of the investment
  • Establishment of best practices in procurement and project implementation

Loan financing

The maximum loan amount granted from this Facility is the equivalent of EUR 500,000 in local currencies. NEFCO can finance up to 90% of the project costs. The payback period of the investment is up to 5 years with an interest rate of 3%. Project payback is calculated by dividing the total project cost with the anticipated annual cost savings generated from the project.

Contributors

The Energy Saving Credits loan programme is financed by the Nordic Environmental Development Fund, which includes contributions from all Nordic countries, NEFCO and the Nordic Council of Ministers. NEFCO acts as the implementing agency.

How to apply?

Contact our investment team for further information.

Contacts

Aliona Fomenco

Project Manager

+358 10 6180 647
aliona.fomenco@nefco.fi
Moldovan, Russian, English, Finnish

Julia Shevchuk

Chief Investment Adviser, Ukraine

+380 50 358 3518
J.Shevchuk@nefco.org.ua
Ukrainian, Russian, English

Vitaly Artyushchenko

Chief Investment Adviser, Consultant, Russia

+7 911 980 1723
vitaly.artyushenko@nefco-ru.ru
Russian, English, Swedish

Wish to know more?