Mitigating climate change and sustainable economic growth through investing in measures that reduce energy consumption, resource use and CO₂ emissions are at top of the global agenda. The Green for Growth Fund (GGF) under the EU4Business Initiative is an impact investment fund that leverages risk-capital provided by public institutions with additional private capital to substantially increase investment volumes to the EaP region to enable resource efficiency, powering renewable energy and building the green ecosystem.

One of its target markets is Ukraine. In order to make the Ukrainian economy more sustainable and competitive, the agricultural sector needs to invest to keep up with modern standards. Machinery plays a big role in efficiency of agribusinesses; with the use of energy-efficient equipment, farmers can reduce their expenses and get better results. This is where the Green for Growth Fund (GGF) is making its contribution. With the benefits created by solar power, the community now plans to welcome further green energy installations. 

Solar success in Plyskiv village, Ukraine

Plyskiv village in Ukraine: Vyacheslav Chykan gazes across the solar plant. Blue and silver hues shimmer across the PV panels on this 7MW solar plant, constructed using a loan enabled by the Green for Growth Fund (GGF) through its partner ProCredit Bank. 

“This is the future of energy development in Ukraine,” states Chykan. As Financial Director of the plant, Chykan believes that solar power production in Ukraine has significant untapped potential as a renewable energy solution. “I am confident that one day, we will be able to replace non-renewable sources like gas and coal with sustainable sources like sun and wind.”

Ukraine has set itself a target of increasing the share of renewable energy in its total supply to 25% by 2035. The GGF is playing its role in helping Ukraine realize this goal by directly investing in renewable energy projects, as well as by channeling investments into projects such as this one through its local partner financial institutions. 

The Plyskiv solar plant has not only contributed to achieving the country’s clean energy target but has also brought along advantages for the local community, such as employment opportunities. With the benefits created by solar power, the community now plans to welcome further green energy installations. 

Sowing the seeds of green energy

Korsoil Agro LLC, Ukraine: The deep hum of tractors fills the air as Viktor Korniychuk, owner of Korsoil Agro, inspects his machinery. As dedicated farmer, Korniychuk is delighted by the diverse crops his farm has been able to produce over the past 10 years since Korsoil Agro was established. Now with 31 employees, Korniychuk is an important local employer and a part of the country’s thriving agricultural sector. 

The rich, fertile Ukrainian soil, which covers 70% of the country, yields a variety of crops. Farming makes up a substantial economic sector, contributing 12% to the country’s GDP. In fact, Ukraine is one of Europe’s leading grain producers. 

In order to make the Ukrainian economy more sustainable and competitive, the agricultural sector needs to invest to keep up with modern standards. Machinery plays a big role in efficiency of agribusinesses; with the use of energy-efficient equipment, farmers like Korniychuk can reduce their expenses and get better results. This is where the Green for Growth Fund (GGF) is making its contribution. 

The GGF is working with leasing companies, like OTP Leasing, to help farmers and agribusinesses like Korsoil Agro upgrade their equipment to reduce fuel consumption and become more energy efficient.

“By using the new equipment we received through OTP Leasing, we have reached a new level of efficiency. We are now driving over the field three times less, meaning we also use the equipment three times less. We were able to reduce the frequency of use of equipment on this farm, cutting the consumption of diesel, and reducing the load on land,” says Korniychuk. “This leads to better soil quality in the fields.”

“We feel the effects in economic terms, too. Thanks to this new equipment, our productivity has doubled, or even tripled for some kinds of grain,” remarks Korniychuk. With double the crop produced in half the time, it is clear that business for Korniychuk is thriving thanks to energy efficient machinery, enabled by the GGF, to harvest the grain.