- Frequently asked questions

If you read the questions and answers to these questions, you will be familiar with most important aspects of the your possibility to complete energy efficiency projects and receive financing. If you cannot find your question below, please contact the UKEEP hotline.

Q: I run a newly started company and need investors for a profitable project. Can I get UKEEP financing.

A: UKEEP provides only loan financing, not equity capital. Your project may be eligible for UKEEP loan financing in itself, but if your newly started company has a short credit history, it may be difficult for the participating banks to assess your company's creditworthiness and provide you with loans. This is why UKEEP targets private creditworthy companies.

Q: What are the loan conditions?

A: Loan conditions depend on market interest rates, project size, company debt capacity, security, etcetera, but the loan period could typically be around six years and the interest rate is competitive compared with other existing loan solutions on the market.

Q: What does the UKEEP Energy Audit contain?

A: The UKEEP Energy Audit is an energy savings assessment and aims to find the best and most profitable investments that a company can undertake to increase energy efficiency. It documents these investments into an investment programme and calculates its profitability. The Energy Audit is then used as a basis for approving a loan under UKEEP.

Q: Does my company need an Energy Audit to be approved for UKEEP financing?

A: Not necessarily. If you know which investments you want to undertake and have a well-documented investment programme on which the bank can base a lending decision, then an energy audit is not necessary.

Q: How profitable are energy efficiency projects?

A: It depends largely on the type of investment. Some investments have a payback time of less than a year, although typical payback times are 3-6 years. However, since UKEEP offers attractive loan possibilities, these investments will only strengthen the profitability of the company.

Q: What type of projects are possible to do?

A: All projects that save energy either in the production of energy or the usage of energy plus renewable energy projects. If you are uncertain how large the potential is for your company, please contact the  UKEEP hotline. UKEEP experts will help you make a quick assessment of the potential in your company. If believed to be large enough, an energy audit can be made, free of charge. For examples of typical investments, click here.

Q: Can we receive grants also?

A: The free technical assistance for UKEEP projects is funded by Swedish and Austrian development funds, but there are no financial grants available. However, don’t forget the possibilities to apply for Kyoto rights if your project will reduce greenhouse gases significantly, e.g., by converting energy production to renewable energy. You can ask the UKEEP project leader about Kyoto rights, although UKEEP does not assist actively supports to receive Kyoto rights.

Q: We have a lot of sensitive information in the company. How can you assure confidentiality?

A: Regarding the economics of the company, only the banks will access this information and regular bank confidentiality is applied. Regarding the technical aspects of the project, they will be assessed by the Swedish and/or Austrian technical consultants in the project and the corresponding information will be protected by normal project confidentiality rules. 

Q: When is the deadline to apply?

A: The project runs under 2007-2008 and within this period it is possible to apply for financing. The loans of course run over a significantly longer period.

Q: We are not a customer of any of the banks in the project. Which of the banks should we use?

A: If you are not a customer of any of the banks, it will be easier and quicker to contact the UKEEP hotline directly who's experts will make a preliminary assessment of the project.

Q: Can municipalities also get financing for energy efficiency projects?

A: Although there are many interesting project in the public sector, this project focuses on private companies. Agricultural business is also covered by the project. Municipal services companies of which a majority of the shares are privately owned may be eligible.

Q: We need around USD 10 million for our project. Is this possible?

A: Generally UKEEP provides loans up to USD 5 million. However, if you have a larger project in mind, you can still send an application. UKEEP experts can advice on steps to realize the project, if eligible for UKEEP.

Q: What kind of projects can be financed within this program?

A: Two kinds of projects: Energy efficiency and renewable sources of energy. Energy efficiency can be either efficient production of energy or efficient use of energy resources, and the aim is to use less energy per output unit. Renewable energy projects are, e.g., conversion to wood fuel, installation of wind mills, construction of small scale hydro plants, etcetera.

Q: We need around USD 200,000 for one project. Is this possible?

A: It is up to one of the banks to decide. It might be too small a loan for the bank, but you should not hesitate to apply and receive a proper reply.

Q: How is joint implementation, carbon financing and the kyoto protocol connected to the UKEEP programme?

A: UKEEP is an independent programme providing loans and free technical assistance for energy efficiency and renewable energy projects. It does not offer to purchase kyoto carbon credits, which are called Emission Reduction Units (ERU) under joint implementation, nor does it actively assist in obtaining carbon financing. However, if a project eligible for UKEEP needs carbon financing in order to be profitable and accepted into UKEEP, then the UKEEP experts can provide advice. To learn more about joint implementation in Ukraine, please see our articles section and download our seminar presentations. 

Q: We are a holding with several companies that probably could be more energy efficient, but the knowledge of energy efficiency is low in the group. What should we do?

A: One good way is to ask your chief engineer to make a short list with possible areas of improvement. Discuss this list with UKEEP experts who can decide how to go further. For example, UKEEP experts can visit the premises (free of charge) to make a clearer assessment of the potential.

Q: Will the loan cover costs for consultants?

A: The project offers assistance from technical consultants free of charge and therefore other consultants cannot be loan financed for feasibility studies. On the other hand, project costs for implementation after the feasibility study has been done such as permissions, engineering costs, etcetera, are considered normal project costs and thereby eligible for loan financing.

Q: We only want an energy audit. Can we get that for free?

A: Energy audits are only offered once a loan application has been sent in. Click here to apply.