10th Energy Day: Strategic Directions for Development of Renewable Energy and Energy Efficiency discussed in Kiev
On November 14, 2019, the 10th European-Ukrainian Energy Day was held in Kyiv – the energy sector discussion platform organized annually by the European-Ukrainian Energy Agency.
This time it was held in the format of the Strategic Session “New Era of Sustainable Development of RES and EE in Ukraine – Horizon 2025”.
During the first panel of the session “Priority Actions and Plans to Reach Sustainable RES and EE Development of Ukraine in 2025”, representatives of the government, international donor organizations and players of the renewable energy market outlined the main priorities for the development of the renewable energy and energy efficiency sectors in 2025 in Ukraine to implement these plans.
Aliona Babak, Minister for Communities and Territories Development of Ukraine stated: “The priority of our Ministry is modernization of the heating sector in residential buildings. 33% in the energy balance of Ukraine is the consumption in such buildings (for 2017). 70-80% of the amount in utility bills is payment for heat, hot water, and energy. We will encourage the population to apply to the State Energy Efficiency Fund. And we already have interest from homeowners. For the moment, they have applied for $58 million to implement modernization measures in their homes. The declared projects should reduce the heat consumption in homes by almost 40%. Our goal is to reduce payment amounts by 20 to 40%. Also among the priorities are thermo-modernization of budget buildings, state and local government buildings and the development of energy audit. ”
Yanez Kopach, Director of the Energy Community Secretariat, said that it is known that Ukraine uses 42% of energy for heating. In this context, the price of energy has become an extremely important driver of change. Tax levels, as is the case in other countries, could also be a motivating factor in Ukraine for moving forward. In particular, he noted, we would advise the new Government to set up a special fund to accumulate the proceeds from the CO2 tax. We would encourage the income of this special fund to direct for financing the transition to effective technologies.
Among the top priorities for the development of RES and EE, the speakers noted:
– simplification of access to investment capital, introduction of new formats;
– introduction of relevant legislation, first of all, the Energy Efficiency Law, revision of the National Energy Efficiency Plan;
– empowering the Energy Efficiency Fund;
– launching auctions for production of electricity from alternative energy sources in the first quarter of 2020. Prepare the legislative framework for the auctions by the end of 2019 at the latest.
In the second panel of the strategic session, “The expectations from of IFIs, Donors, Industrial Company to the actions of Ukrainian policy makers and European Stakeholders significantly emphasized the unpredictability of the future of the Ukrainian RES and EE market. This concern was prompted by an attempt at retrospective changes to guarantee green tariff payments.
“Investors cannot be frightened in an industry that is virtually Ukraine’s future,” says Olga Yeriomina – Associate Director, Senior Banker, Energy EMEA, Sustainable Infrastructure Group, European Bank for Reconstruction and Development, EBRD in Ukraine.
Serhiy Porovskyy – Energy Efficiency Financing and Policy Expert UNIDO/GEF Project “UKR IEE Introduction of Energy Management System Standard in Ukrainian Industry”, believes that in Ukraine it is urgent necessity to simplify access to investment capital and introduce systematic energy management. In addition, according to Mr. Porovskyy, Ukraine is obliged to immediately reduce its CO2 emissions, as whole industries will suffer as a result of implementing the so-called carbon leakage tax, such as exports of metal products will fall sharply.
Current tariffs for heat, in particular, are not attractive to investors – said Yulia Shevchuk, Senior Investment Advisor at NEFCO. At the same time, all experts were solid – investment in the RES sector should be a priority over investment in traditional technologies. At the same time, it was noted that Ukraine is developing the fastest growing energy sector in Europe; in fact, the industry has grown over the last four years.
More about 10th European – Ukrainian Energy Day here.