The Energy Efficiency Fund has discussed changes to the Energodim and VidnovyDIM programmes ahead of the receipt of funding under the Ukraine Facility. This was reported by the Energy Efficiency Fund. Once the funding is received and the new terms are approved by the Supervisory Board, the Fund plans to resume accepting new applications.
Among the proposals for the Energodim programme is an increase in the maximum eligible cost of individual energy efficiency measures. The Fund attributes this to changes in the prices of works and equipment since the current rules came into effect.
In particular, participants in the discussion proposed increasing the maximum eligible cost of thermal insulation of external walls, replacement of windows and doors, as well as insulation of attics and roofs. The maximum eligible cost affects the amount of expenditure taken into account by the Fund when calculating the grant.
For projects under Package B, the reintroduction of advance payments is also being considered. The Fund proposes transferring advance payments through an escrow account. The contractor would be required to provide a bank guarantee for repayment of the advance.
The parties also discussed the current maximum advance payment of UAH 4.2 million. Options include removing the limit, increasing it, or linking the maximum amount to the number of flats or the floor area of the building. The Fund will continue to examine the issue of the grant and advance payment amounts.
Participants also proposed expanding the range of buildings eligible to join Energodim. For projects involving the modernisation of a rooftop boiler plant, it is proposed to change the latest eligible year of building commissioning from 2009 to 2014. The Fund requested calculations of the actual energy savings resulting from such a measure.
Another proposal concerns reinstating the Project Description as part of the application documentation. It would have to be completed by an energy auditor. This change is linked to the possibility of selecting projects based on energy efficiency indicators.
It is also proposed to introduce a prohibition on withdrawing declared measures after an application to participate has been approved. In addition, participants supported reviewing the amount reimbursed for building energy performance certification. The Fund's materials do not indicate whether this amount is planned to be increased or reduced.
The implementation period for Energodim projects may also be revised. The Fund supported a proposal to allow it to be extended by six months instead of three.
For the VidnovyDIM programme, participants discussed a mechanism for adjusting projects already under way if a building suffers further damage as a result of Russian aggression. A condominium association will be able to submit an application for an adjustment before the works are completed. Priority will be given to emergency stabilisation measures and the restoration of damaged structures, followed by repairs to façades and common areas.
For buildings located in areas subject to mandatory evacuation, the Fund proposes a separate procedure for grant payments. A condominium association will be able to receive the grant in a single payment after completion of the works, without an advance payment.
A separate proposal concerns condominium associations whose buildings, after the start of a project, become located in areas of active hostilities. Such participants are proposed to be allowed to receive the second tranche of the grant.
Under the revised VidnovyDIM programme, the Fund plans to transfer first tranches to escrow accounts.
Some of the changes to both programmes are determined by Ukraine Facility requirements. Contractors and other project participants must operate and be registered in countries permitted under the rules of this financial instrument. Companies, their executives and ultimate beneficial owners must not be subject to sanctions.
Documentary proof of the country of origin is also envisaged for key construction materials and equipment. The Fund proposes an exemption where the necessary materials or equipment cannot be obtained from eligible countries on reasonable terms.
The new requirements also provide for the disclosure of information about contractors, subcontractors and their ultimate beneficial owners. The rules must also prevent projects from receiving double funding from European funds.
The Fund proposes applying the requirements related to the Ukraine Facility to new participants. Projects for which condominium associations submitted applications earlier should continue under the rules that were in force when they joined the programmes.
All the changes listed above currently remain proposals. The Fund will submit the final versions to the Supervisory Board for consideration once the necessary procedures have been completed and Ukraine Facility funding has been received.
Applications for Energodim and VidnovyDIM were previously suspended from 22 April 2026 to adapt the programmes to Ukraine Facility requirements.
Illustrative photo: ANHELINA OSAULENKO on Unsplash
Energy Efficiency Fund plans new terms for Energodim and VidnovyDIM ahead of Ukraine Facility funding
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