Investment Partnership in Renewable Energy and Street Lighting in Ukraine
We propose the creation of a joint venture to implement projects for the introduction of renewable energy sources and the modernization of street lighting in Ukraine.
This project opens up broad prospects for long-term growth and sustainable development, combining the experience of the Ukrainian team with the innovative technologies and financing of the European partner.
Key Benefits of Cooperation
Promising Market
Ukraine is actively transitioning to renewable energy sources and energy-efficient technologies. During the country's reconstruction, the demand for street lighting and renewable energy-based solutions will significantly increase.
Team Experience
The Ukrainian team has significant experience in managing projects in this field and established connections with local administrations and businesses.
Participation of a Foreign Partner
European companies have access to advanced technologies and financing. Direct involvement in the reconstruction of Ukraine will strengthen the reputation of the foreign partner.
Social and Economic Impact
Improved quality of life through energy-efficient solutions and contribution to sustainable development and carbon footprint reduction.
Conditions for Establishing a Joint Venture
Ownership Structure
- Foreign partner's share - 51%
- Ukrainian initiator's share - 49%
Responsibilities of the Parties
Foreign Partner: Investments, technological solutions, strategic management
Ukrainian Initiator: Local expertise, project implementation, operational management
Required Partner Experience
Partner's activities in the field of solar and renewable energy for the joint venture
I. Main types of work
1. Development, construction and maintenance of renewable energy facilities:
1.1. Installation and maintenance of solar power plants (commercial and private).
1.2. Implementation of hybrid systems (solar energy + backup power).
1.3. Reconstruction and modernization of existing energy systems for integration with renewable energy sources.
1.4. Installation of solar panels on industrial, public and residential buildings.
1.2. Implementation of hybrid systems (solar energy + backup power).
1.3. Reconstruction and modernization of existing energy systems for integration with renewable energy sources.
1.4. Installation of solar panels on industrial, public and residential buildings.
2. Design and implementation of autonomous energy systems:
2.1. Development of autonomous power supply systems for remote areas and facilities.
2.2. Design of energy storage systems and their integration into systems.
2.3. Street lighting systems based on renewable energy.
2.1. Development of autonomous power supply systems for remote areas and facilities.
2.2. Design of energy storage systems and their integration into systems.
2.3. Street lighting systems based on renewable energy.
3. Maintenance and repair:
3.1. Inspection and maintenance of solar energy facilities.
3.2. Repair of inverters, solar modules, batteries and other equipment.
3.3. Monitoring and dispatching of systems based on IoT solutions.
3.1. Inspection and maintenance of solar energy facilities.
3.2. Repair of inverters, solar modules, batteries and other equipment.
3.3. Monitoring and dispatching of systems based on IoT solutions.
II. Main elements of renewable energy
- Solar panels (various types: monocrystalline, polycrystalline).
- Inverters for energy conversion.
- Battery systems for energy storage.
- Control and monitoring systems (BMS, dispatching).
- Supports and structures for installing solar modules.
- Electrical networks and infrastructure for connection to common grids.
III. Tasks solved by the implementation of renewable energy projects
- Energy independence:
- Providing local facilities with their own energy, reducing dependence on external sources.
- Economic benefit:
- Reducing electricity costs through the use of renewable energy sources.
- Increasing the share of renewable energy in the regional energy balance.
- Environmental sustainability:
- Reducing carbon dioxide emissions and improving the environmental situation.
- Attracting attention to environmental initiatives.
- Social effects:
- Improving the quality of life through stable energy supply.
- Increasing the level of safety through the introduction of energy-efficient lighting.
IV. Scope of work
The scope of work depends on:
- Specific technical specifications agreed with customers and authorities.
- Geographical, climatic and infrastructure conditions.
- Available funding and investments.
V. Funding sources
- Funds from local and state budgets.
- Grants from international organizations such as the EU, UN, USAID.
- Loans from financial institutions, including green bonds.
- Private investments.
- Own funds of enterprises and partner organizations.
Partner's Prospects and Strategy
- Short-term goals (1-2 years):
- Development of basic infrastructure and launch of pilot projects.
- Implementation of autonomous power supply systems in socially significant facilities.
- Medium-term goals (3-5 years):
- Scaling up projects at the level of municipalities and commercial facilities.
- Improving energy efficiency of large industrial and residential complexes.
This approach helps to systematically implement renewable energy, effectively integrating it into the local infrastructure and ensuring long-term sustainability.
LIST OF MAIN
TYPES OF WORK on lighting.
I. 1.1. Construction, repair
(restoration), reconstruction of outdoor lighting networks:
1.1.1 streets, highways, pedestrian crossings and sidewalks;
1.1.2. parks and squares;
1.1.3. architectural and decorative objects;
1.1.4. adjacent territories.
In addition to the above, the list of works also includes:
- replacement of mercury and sodium lamps with LED lamps;
-construction of sensor lighting networks for ground pedestrian crossings;
-installation of intelligent LED.
II. ELEMENTS OF OUTDOOR
LIGHTING.
Works on the construction, repair (restoration), reconstruction of outdoor lighting networks are aimed, in particular, at ensuring, replacing, preserving the technical and aesthetic condition of outdoor lighting elements, improving their operational qualities and increasing their service life.
Outdoor lighting elements include:
1. Electrical networks, including distribution power transmission networks (cable and overhead);
2. Dispatch communication equipment;
3. Automation and telemechanics that provide outdoor lighting networks;
4. Luminaires of all types;
5. Floodlight installations;
6. Power supply points for equipment and equipment;
7. Supports of all types and cable suspensions.
III. TASKS SOLVED AS A RESULT OF PERFORMING THE MAIN TYPES OF WORK ON OUTDOOR LIGHTING
Ensuring high-quality lighting in cities, urban-type settlements, and villages is one of the most important social tasks, the solution of which allows:
-reduce traffic accidents;
-increase the speed of traffic;
-reduce the indicators of street crime and vandalism;
- improve environmental safety;
- increase budget revenues from tourism activities, as well as from the placement of retail trade facilities, services in illuminated areas;
-reduce travel time in settlements;
-improve visual comfort and psychological atmosphere among the population;
- positively affect the health and productivity of residents.
IV. SCOPE OF WORK
The volume of necessary work on street lighting, their design and estimate cost are determined in each specific case, for each settlement based on the terms of reference agreed with the local authorities.
V. SOURCES OF FINANCING OF WORKS
Sources of financing for street lighting works are:
- targeted funds from local budgets;
- funds from financial and credit institutions;
-grants allocated by foreign and local organizations;
- funds of financial assistance allocated by foreign state and private structures;
- own funds of enterprises and organizations;
-investment funds and others.
Initial Financing
50K
Euro Investment
Required investment amount to launch the project
3
Months
Duration of initial financing
Use of Initial Capital
Potential business areas of the joint venture:
Street lighting
Energy-efficient LED systems
Installation of modern LED systems for street lighting
Integration of solar panels
Implementation of solutions using solar panels to power street lighting
"Smart" IoT systems
Lighting management through intelligent Internet of Things systems
Potential Business Directions: Renewable Energy
1
Small-Scale Power Plants
Construction of small-scale solar and wind power plants for local power supply
2
Autonomous Power
Implementation of solutions for autonomous power supply of facilities using renewable energy sources
3
Energy Storage
Installation of energy storage systems to improve the reliability of power supply
Consulting
and Engineering
Feasibility Studies
Preparation of detailed feasibility studies for renewable energy and street lighting projects
Licensing
Assistance in obtaining the necessary licenses for the implementation of energy projects
Permitting Documentation
Preparation and support in obtaining all necessary documentation for projects
Development Prospects:
Wartime Period
1
Simplified Procedures
Implementation of simplified procedures for the implementation of infrastructure projects in the energy and lighting sectors
2
Direct Financing
Receiving direct financing from international donors and organizations for the restoration of critical infrastructure
3
Rapid Implementation
Ability to quickly implement energy-efficient solutions to meet the basic needs of the population
Development Prospects:
Recovery Period
1
2
3
4
1
EU Support Programs
Access to financial and technical support programs from the European Union
2
Increasing Demand
Significant increase in demand for energy-efficient and environmentally friendly solutions
3
Attracting Investors
Opportunity to attract additional investors to scale the business
4
Expanding Operations
Potential to expand operations to other regions and sectors of the economy
Social and Economic Impact
1
2
3
4
1
Improved Quality of Life
Increased comfort and safety for citizens
2
Energy Independence
Reduced dependence on external energy resources
3
Economic Development
Creation of new jobs and stimulation of the economy
4
Environmental Contribution
Reduced carbon footprint and improved ecology
Benefits for the Foreign Partner
Access to a Promising Market
Opportunity to enter the rapidly growing renewable energy market in Ukraine
Realization of Profitable Projects
Participation in highly profitable projects with government support and international financing
Reputation Enhancement
Strengthening the company's image as a participant in the restoration and sustainable development of Ukraine
Expansion of Presence
Opportunity to expand your presence in the Eastern European markets
Key Project Indicators
51%
Foreign Partner's Share
Controlling stake in the joint venture
50K
Euro Investments
Initial investment volume to launch the project
3
Months
Duration of initial financing
Financial Model of a Joint Venture in the Energy and Lighting Sector
Analysis Period: 5 Years
Revenue by Year:
- Year 1: €3 million
- Year 2: €10 million
- Year 3: €50 million
- Year 4: €100 million
- Year 5: €250 million
1. Key Indicators
2. Revenue and Expense Allocation
2.1. Expenses:
- Cost of Goods Sold (COGS):
- Year 1: 50% of revenue (€1.5 million).
- Years 2-5: Decrease to 45% of revenue due to scaling.
- Operating Expenses (OPEX):
- Marketing and Advertising:
- 10% of revenue in Year 1 (€0.3 million).
- Decrease to 5% from Year 3 onwards.
- Salaries and Administrative Expenses:
- 20% of revenue in Year 1 (€0.6 million).
- Decrease to 10% from Year 3 onwards.
- Development Investments:
- Include capacity expansion, equipment procurement, and new technology development.
- Constitute 15% of revenue in Years 2-5.
- Reserve Fund:
- 5% of revenue annually to cover risks.
2.2. Profit and Distribution:
- Net Profit:
- Maintained at 20-26% of revenue.
- Net Profit Distribution:
- Dividends: 60% of net profit annually.
- Reinvestment: 40% of net profit for business growth.
3. Profitability Recommendations
- Optimal Business Profitability: 25-30%.
- Measures to Achieve Profitability:
- Cost Control:
- Reduce the share of production costs through optimization.
- Effective procurement and logistics management.
- Marketing Strategy:
- Focus on digital promotion with minimal costs.
- Partnerships with local authorities and companies.
- Innovation and Automation:
- Invest in technologies that will reduce expenses.
- Implement "smart" management systems for street lighting and energy.
4. Prospects and Growth
- Years 1-5: Focus on the Ukrainian market, brand building, and securing the first contracts.
- Prospects
- Develop own energy projects.
- Expand to neighboring markets.
- Participate in international tenders.
- Leverage reputation to attract additional investors.
The financial indicators highlight the stable development of the business with a focus on profitability, growth, and reinvestment.
The structure of expenses and profit distribution allows for effective resource management and stimulates long-term growth.
Invitation to Cooperation
We invite you to join this important project, which will bring not only financial benefits, but also a tangible contribution to the reconstruction of Ukraine.
The creation of a joint venture in the field of renewable energy and street lighting opens up broad prospects for long-term growth and sustainable development.
Your participation will allow us to combine innovative technologies and financing with our local experience and expertise to achieve common success.
The presentation was prepared by Partner Group Network
