From energy efficiency to energy independenceOct 18, 2016
The Energy Efficiency Fund and the draft law introduced by Ukrainian Vice Prime Minister Gennady Zubko at the UNDP Forum on “Energy Independence. Creating Energy Efficiency Fund” will pave the way to energy efficiency reform in Ukraine, create 75,000 jobs, attract over UAH 60 billion of investments in smart green projects for greater energetic independence and inject UAH 10 billion in State and local budgets.
As one of the least energy-efficient countries around the globe, Ukraine depends on imports for over 50% of its energy supplies. Annual waste amounts to 9 billion m3 of gas in Ukraine due to poor housing insulation and equipment maintenance. Such waste would be enough to supply heating to 4,500,000 houses a year!
Inefficiencies in heat transmission systems alone cause losses of about 2.5 bln.m3 of gas per year, and have been driving energy consumption bills up.
The Energy Efficiency Secretariat and Expert Hub, a UNDP project financed by the Government of the Slovak Republic (SlovakAid), has supported the initiative to develop the Energy Efficiency Fund, which is an instrument designed to finance complex and smart energy efficiency programs, and is also expected to serve as a catalyst for attracting investments in projects aiming to reduce energy consumption in residential heating and increase comfort.
Ukrainian legislators have already adopted a set of laws governing ownership rights and duties in housing, communal services, metering and energy efficiency of houses.
“This instrument and the adoption of this draft law enabling its implementation could transform Ukraine. Additionally to the 9 bln.m3 of gas to be saved, this market has the potential to attract over UAH 60 billions, create about 75,000 jobs and inject UAH 10 billions in local and State budgets, ”said Vice Prime Minister Zubko, adding, “These are ambitious goals, we have set them and we’ll achieve them.”
“The Energy Efficiency Fund has the potential to become a powerful instrument to accelerate economic development and environmental protection”, said Cihan Sultanoğlu, UN Assistant Secretary-General and UNDP Director of the Regional Bureau for Europe and the CIS.
In support of the Ukrainian government’s efforts to carry out reform in the energy sector and to fund services promoting energy-efficiency projects, such as feasibility studies, energy audits and financial analyses, UNDP notably assists central and local authorities, communities and the private sector to design their energy efficiency projects and to identify sources of financing.