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

Photo 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.



Project start date:

September 2015

Estimated end date:

December 2023

Focus area:

  • inclusive growth
  • accelerate structural transformations
  • Funding Support by

    Donor name

  • Global Environment Fund Truste
  • Government Of Slovak Republic
  • Us Department Of State
  • Office To Monitor & Combat Tracking In Persons.
  • Amount contributed


    Delivery in previous fiscal year

    Partners: Ministry of Regional Development, Construction, Housing and Communal Services, State Agency for Energy Efficiency, Municipalities of Ukraine, Ministry of Education and Science of Ukraine, Ministry of Health of Ukraine, Ministry of Finance of Ukraine, Ministry of Justice of Ukraine, Association of the Small Cities of Ukraine, City Councils, All-Ukrainian Association of Energy Auditors and Energy Managers, Small Grants Programme, NGOs, financial institutions and businesses

    Project Manager: Sergii Varga |

    Related Pages: Project Document


    Explore more


    UNDP Around the world

    You are at UNDP Ukraine 
    Go to UNDP Global