23.09.2025 | Insight
The completed project in Chortkiv is the first solar energy project implemented by Nefco to support critical infrastructure in Ukraine. The solar power plants were officially commissioned on 23 September 2025 with all involved project partners present in the city.
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- Solar power plants installed at three water and wastewater utility sites in Chortkiv, Western Ukraine, support uninterrupted water services to residents.
- Amid Russia’s continued attacks on Ukraine’s energy infrastructure, solar power has the potential to fill a vital energy gap, contributing to the creation of a more reliable, decentralised and resilient energy system.
- With EUR 460,000 in grant funding provided by the Eastern Europe Energy Efficiency and Environment Partnership (E5P) and EUR 54,960 in technical assistance from Sweden, a total photovoltaic capacity of 340 kilowatts has been installed in Chortkiv.
- This is the first solar energy project by Nefco to power critical infrastructure in Ukraine. The project provides significant benefits, covering approximately 20% of the facilities’ electricity needs, ensuring the reliable municipal water services, reducing CO₂ emissions and lowering costs for the local water utility company.
The implementation of this demonstration project marks a significant step in supporting the country’s energy resilience. The Eastern Europe Energy Efficiency and Environment Partnership (E5P) has provided EUR 460,000 in grant funding, with Sweden providing EUR 54,960 in technical assistance. The city of Chortkiv contributed EUR 33,846 in co-financing.
“Chortkiv has demonstrated that implementing projects like this is possible with support from international finance institutions and donors even under the difficult conditions of war. This approach offers hope that Ukraine’s long-term recovery will go beyond simply rebuilding what was destroyed and pave the way for a more sustainable, energy-independent and environmentally secure future. This initiative also sets an example for other cities on how to build modern infrastructure with an emphasis on a green transition and energy efficiency,” says Volodymyr Shmatko, Mayor of Chortkiv.
“With E5P donor support, Chortkiv now has clean energy and reliable water services—a vital step for resilience and sustainability during these critical wartimes,” says Kateryna Stasiuk, Principal Fund Manager, Eastern Europe Energy Efficiency and Environment Partnership (E5P).
A local solution to a national challenge
The ongoing war in Ukraine has devastated the country’s energy sector. Systematic attacks on power infrastructure have led to severe electricity shortages and growing energy insecurity. These disruptions affect essential municipal services such as water treatment, healthcare and education. Additionally, rising electricity costs and grid instability have placed further strain on city budgets and public utilities.
In the face of these challenges, solar energy is emerging as a reliable and sustainable solution, offering not only a renewable alternative to fossil-based electricity but numerous other benefits.
“Solar power has many advantages over other energy sources, even renewable ones,” explains Jyrki Rautamäki, Senior Consultant at Nefco. “Solar power plants are economical and have a relatively short construction time. They are also much safer to operate than fuel generators, as well as producing no noise, requiring less maintenance and offering more reliable operation than mechanical systems, which are prone to breakdowns. Additionally, photovoltaic panels are durable and long-lasting. All these factors make them a swift and effective solution when additional energy capacity is needed.”
In this context, the completed Chortkiv solar power project represents an efficient response to Ukraine’s current energy crisis, while also helping to lay the foundation for long-term energy independence and a more sustainable future.
Securing water supply in Chortkiv through solar power
Located in the Ternopil region of Western Ukraine, Chortkiv is a historic town with a population of about 30,000 people. Since 2018, the city has worked with Nefco to improve the energy efficiency of public buildings. Following the full-scale Russian invasion in February 2022 and the arrival of more than 2,700 internally displaced persons (IDPs) from war-torn regions in the east and south of Ukraine, the partnership expanded to include the renovation of a dormitory to provide urgent accommodation for IDPs and the strengthening of critical municipal services to support the increased population.
Water infrastructure has become a particular priority. Interruptions in the electricity supply caused by damage to the national power grid, combined with increased demand and strain on the existing systems, made it more difficult to ensure reliable supply of clean water and treatment of wastewater in Chortkiv.
To address these challenges, a proposal was developed to install three photovoltaic power plants: two at water pumping stations and one at the city’s wastewater treatment facility. With a total capacity of 340 kilowatts, the solar power plants now supply approximately 20% of these facilities’ electricity needs, ensuring the reliability of municipal water services.
The project also includes a net billing scheme, which allows the facilities to effectively balance their own energy consumption and generation and potentially direct surplus electricity to the national grid, further increasing energy efficiency and reducing reliance on fossil fuels. Training on the operation of the solar power plants has been provided to staff at the water utility company, ensuring long-term functionality.
The benefits of the Chortkiv project extend beyond operational stability. Replacing a portion of previously grid-supplied electricity with solar energy is expected to result in an annual reduction of some 300 tonnes of CO₂ emissions, generating about EUR 70,000 in municipal expenditure savings.
Furthermore, the project helps safeguard the health and wellbeing of residents and relocated IDPs, as well as strengthening the resilience of public services in wartime conditions and contributing to local energy independence.
Chortkiv is showing the way for other municipalities
The Chortkiv solar energy project serves as a demonstration project for other Ukrainian municipalities looking at ways to support the electricity supply to provide reliable infrastructure services for residents. Nefco has previously integrated small-scale solar components as part of its supported housing projects through the implementation of rooftop photovoltaic panels, but this is the first project to use solar power as the primary energy solution for critical municipal infrastructure.
The successful introduction of solar power at Chortkiv’s water utility sites highlights the broader potential of renewable energy to support critical municipal services. Hospitals, schools and other vital institutions can also benefit from similar systems, helping to ensure that they remain operational even when faced with an unstable energy supply.
“This project demonstrates how a water utility can be transformed into a more sustainable, environmentally friendly and modern facility. The results extend beyond enhancing energy security during wartime and reducing environmental harm, motivating us to integrate energy management into the daily operations of our enterprise,” comments Viktor Hordiienko, Head of the Chortkiv Production Department of Water Supply and Sewerage Services.
“Solar photovoltaic systems have not yet been widely adopted in Ukraine’s municipal sector, so we hope this project will provide an example for other municipalities and utility companies on how they can harness solar power to partially or fully cover their energy needs,” comments Oleksii Dumik, Technical Adviser at Nefco. “As Ukraine works to ensure the reliability of its critical infrastructure during the war, solar power must be part of broader efforts to build a more sustainable energy system – one that is green, resilient, decentralised and less vulnerable to disruptions.”
For further information, please contact:
Jyrki Rautamäki, Senior Consultant
jyrki.rautamaki@nefco.int, +358 45 172 4150
Oleksii Dumik, Technical Adviser, Nefco
a.dumik@nefco.org.ua, +380 50 352 3383
About Nefco
Nefco, the Nordic Green Bank, is an international financial institution (IFI) founded in 1990. Our task is to work with concrete actions to accelerate the green transition, serving the interests of our owners, Denmark, Finland, Iceland, Norway and Sweden. In addition to our own capital, the Nefco Investment Fund, we manage several trust funds on behalf of various donors to support environmental and climate-related projects. By focusing on small and medium-sized projects with tangible results, we demonstrate how climate and environmental projects can be implemented and scaled up in a sustainable and cost-efficient way. We evaluate projects against our own demanding environmental criteria and the EU Taxonomy and asses their impact against the Paris Agreement and the UN Sustainable Development Goals. Over the years, Nefco has implemented over 1,700 private and public projects across different sectors all over the world. Nefco’s headquarters is located in Helsinki, Finland. Read more at www.nefco.int
About E5P
The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a multi-donor and multi-International Financial Institution (IFI) support fund created thanks to an initiative by the Swedish Presidency of the European Union in 2009. The E5P fund for Ukraine totals EUR 288 million, representing pledges made by the European Union, as the largest contributor to the fund, and Sweden, the largest bilateral contributor in support of Ukraine, as well as Denmark, Estonia, Finland, Germany, Iceland, Ireland, Latvia, Lithuania, Norway, Poland, Slovakia, Switzerland and the United States. Ukraine is not only recipient of the grant funds but also a donor to the E5P fund. E5P grants are used alongside IFI loans to complement municipal infrastructure investments to boost Ukraine’s energy efficiency while also having a beneficial impact on the environment and combating climate change. Currently, there are 32 investment projects supported by E5P across Ukraine with a total investment volume of over EUR 1 billion. Read more at e5p.eu
Photo: One of the installed solar power plants at the water utility site in Chortkiv.