Grow Window
GUARANTEE FOR GREEN INVESTMENTS!
For a business, energy is part of everyday operations and one of the costs that directly affects its activities. From lighting and space heating to equipment and production lines, high energy consumption can increase operating costs and limit the scope for investment and growth.Investing in more efficient technologies, equipment that consumes less energy, building insulation, more efficient heating systems or renewable energy generation can help businesses reduce their energy consumption and costs over the longer term. However, these investments often require substantial upfront financing, while the economic benefits are realized gradually through savings and greater efficiency.This is where the Green Recovery and Opportunity Window GROW comes in. Launched by KCGF in June 2022, with support from the Government of the Federal Republic of Germany through capital provided via KfW, the Window is dedicated to micro, small and medium-sized enterprises (MSMEs) investing in energy efficiency and renewable energy.Through its credit guarantee, KCGF assumes a substantial share of the credit risk, giving partner financial institutions greater capacity and flexibility to finance green investments that require significant upfront capital. These may include financing for more efficient equipment and technologies, the modernization of production lines, more energy-efficient tools and machinery, improvements to the energy performance of buildings, and the installation of renewable energy generation systems.Under GROW, the impact of investments is also assessed through tangible improvements in energy and environmental performance. Investments aim to achieve at least 15% primary energy savings and/or a 15% reduction in CO₂ emissions, linking business financing to measurable outcomes of the green transition.In this way, GROW connects businesses’ needs to invest, modernize and reduce operating costs with the need to use energy more efficiently and transition towards more sustainable energy sources. Through its credit guarantee, KCGF helps address financing barriers, giving partner financial institutions greater capacity to finance green investments and enabling MSMEs to undertake investments that make their businesses more efficient, competitive and sustainable.
WHO CAN BENEFIT?
The GROW Window is intended for MSMEs investing in energy efficiency, renewable energy and green technologies.
| Criterion | Requirement |
|---|---|
| Business status | Micro, small or medium enterprise |
| Registration | Business registered in Kosovo |
| Ownership | Privately owned |
| Number of employees | Less than 250 employees |
| Sector | Eligible sectors of the economy |
| Focus | Investments in energy efficiency and/or renewable energy |
| Investment profile | Investments in energy efficiency and/or renewable energy |
| Purpose | Improving efficiency and reducing energy consumption |
| Self-consumption | Projects generating energy for the business's own needs |
| Technologies | Equipment and technologies that support green investments |
| Renewable energy | Renewable energy projects of up to 400 kW |
GUARANTEE FEATURES
The GROW Window offers terms tailored to financing green investments, combining higher guarantee coverage with long-term financing for energy efficiency and renewable energy projects.
| FEATURE | TERMS |
|---|---|
| Guarantee coverage | Up to 70% |
| Minimum loan amount | EUR 3,000 |
| Maximum loan amount | EUR 3,000,000 |
| Maximum guarantee amount | EUR 1,000,000 |
| Maximum loan maturity | 120 months |
| Purpose | Improving efficiency and reducing energy consumption |
| Self-consumption | Projects generating energy for the business's own needs |
| Technologies | Equipment and technologies that support green investments |
| Renewable energy | Renewable energy projects of up to 400 kW |
ADDED VALUE
The GROW Window creates value both for MSMEs seeking to reduce energy consumption and costs through green investments and for financial institutions financing the transition to a more efficient and sustainable economy.
| FOR MSMES | FOR FINANCIAL INSTITUTIONS |
|---|---|
| Improved access to finance | Reduced credit risk |
| More favourable lending terms | Reduced cost of risk |
| Potential reduction in energy costs | Faster loan processing |
| Reduced collateral requirements | Expanded financing for green investments |
| Support for sustainable development | Support for financing the green transition of businesses |
The GROW Window connects businesses' need for more energy-efficient investments with financial institutions capacity to finance them. By sharing risk with KCGF, it creates more opportunities to reduce costs, use renewable energy and support sustainable business development.
HOW THE GUARANTEE SCHEME WORKS
KCGF has no direct contact with borrowers.Communication with the borrower takes place through the Registered Financial Institution.
Responsibilities and monitoring
KCGF operates on the premise that the RFI will conduct an appropriate credit risk assessment and verify the eligibility of the borrower and the loan.To monitor and oversee the performance of each participating RFI, KCGF has developed two monitoring mechanisms: