Removing Barriers to Increase Investment in Energy Efficiency in Public Buildings in Ukraine through the ESCO Modality in Small and Medium Sized Cities

Project summary

EE-publ-bldgs-projectPhoto credit: Hélène Robert / UNDP in Ukraine

The project’s goal is to reduce greenhouse gas emissions by creating favourable legal, regulatory, market environment and building institutional, administrative and technical capacities to promote energy efficiency measures in public buildings. This includes hospitals, schools, governmental and higher education facilities, kindergartens, orphanages, pharmacies, employment centres, libraries and museums, and uses the ESCO* model.

The project focuses on small and medium sized cities and implies the creation of a single nationwide energy consumption database along with an Energy Management Information System (EMIS) in Ukraine.

Over the five-year implementation period, 10 pilot energy savings projects will be implemented in 10 different Ukrainian cities and are expected to serve as best practice examples to be replicated in other towns throughout the country. The project will actively engage women and contribute to gender equality in a traditionally male-dominated energy sector. The project will lead to 2,346 MWh of thermal and 268 MWh of electrical energy savings as well as a total CO2 emission reduction of 8,893 tons.

*ESCO or ESCo (an energy service company or energy savings company) is a commercial or non-profit business providing a broad range of energy solutions including designs and implementation of energy savings projects, retrofitting, energy conservation, energy infrastructure outsourcing, power generation, energy supply and risk management.

Project goals

  • Formulate and introduce a streamlined and comprehensive framework to promote energy efficiency in public buildings through strengthening of monitoring and enforcement mechanisms.
  • Promote private investment in energy efficiency in public buildings through establishment of a Financial Support Mechanism (FSM).
  • Implement at least 10 pilot projects using the Energy Performance Contract (EPC) modality to demonstrate the energy and cost-saving potential of energy efficiency measures in different municipalities.
  • Establish an institutional basis and comprehensive nationwide Energy Management and Information System (EMIS).
  • Assist the Government to address the barriers to transform the market to promote investments in energy efficiency in public buildings.

Expected Results



  • Streamlined and comprehensive legal and regulatory framework to promote energy efficiency in public buildings is developed.
  • Innovative Financing Support Mechanism is adopted and capacity of ESCOs developed in order to promote investment in energy efficiency in public buildings.
  • Pilot projects, which demonstrate the energy and cost-saving potential of new energy efficient measures, are implemented.
  • Institutional basis established to support energy efficiency in public buildings and implementation of a nationwide Energy Management and Information System.

Donor

Global Environment Facility

USD 5,480,000

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