Support and Development of Renewable Sources (biomass) in Ukraine
IVEL Consult’s consultants supported the establishment and management of the operations of Ukrainian Biomass Esco and trained its staff how to run the company on their own and market its services through active participation in trade/professional organizations as well as in round tables/think-tanks influencing governmental decisions in support of favourable fiscal/budgetary regimes for the biomass sector. In this "know-how" transfer process special attention was paid on how to: use best international practices, toolkits and procedures for operating and managing the ESCO business. In addition, our experts carried out legal, financial and technical due diligence in respect of provision of project finance for biomass projects.
This assignment was commissioned by the European Commission, Europe Aid, Tacis Programme who retained the services of a Project Team including IVEL Consult, Nexant, Exergia and VTT to assist the Government of Ukraine in developing the biomass sector of Ukraine by means of establishing a Biomass Energy Services Company. This ESCO, set up as an independent and profit-making entity, had access to grant capital of US$800k, provided by the European Commission, for financing and implementing two demonstration biomass ESCO projects. Once repaid, the capital would be used for financing/leverage financing for other ESCO project and covering the Biomass ESCO operating costs. The key objective of the consultancy team was to establish a commercially viable Ukrainian Biomass ESCO to implement and finance biomass heating and CHP projects as well as support feasible projects for commercialisation of production, supply and distribution of biofuels in Ukraine.