According to her, such stage-by-stage approach to small districts (30 buildings and 2 km of pipes) can cost 2-3 million Euros and be paid back within three years (!) herewith the energy saving reaches up to 50%. An initial investment is higher, but it is economically reasonable. According to Ms. Rybak: “The main goal for realization of energy efficiency projects in the sphere of heat supply should be based on long-term vision, but not on the simple infrastructure modernization, only then we can secure establishment of the market of efficient energy consumption”. Following is the example of the scheme of district heating system modernization showing and average energy saving – 50% (!):

1. Modernization of housing stock (including insulation).
2. Setting of individual heating substations in every house (savings from 15% to 25%).
3. Replacement of pipes with isolated and transition from 4 pipes to 2 pipes system (savings from 10% to 15%).
4. Modernization of boiler room, when there is the understanding of the volume of the final energy consumption (savings from 5% to 10%).

EUEA director also underlined that orientation on providing of quality services to the users is of priority, finally people will have understanding why they must pay more. “Unfortunately today majority of projects is still oriented on production (Supply driven development), but not on consumer side (Demand driven development). And such mentality of technology suppliers, constructors and users must be changed”, — she says.

Speaking about financing of such projects on energy saving on local and state levels Elena Rybak comments: «Due to changes in the Budgetary Code of Ukraine accepted in August 2011, municipalities can again borrow credit resources from International Financial Institutions. Nevertheless, for the systematic projects implementation it is still necessary to minimize the risks of the changing of authorities on local levels, to prepare the projects of higher quality (according to the European standards). Debts of enterprises and absence of credit history are primary obstacles in attracting financing, in case if a city or regional administrations cannot provide security for the loan.

But there are also alternative mechanisms – “granting objects into concession or energy service mechanisms usage. When an external investor signs the contract with a heating supply company or apartment blocks joint owners’ association (for buildings) and invests into energy efficiency measures.

For attracting such financing within the scheme of private-public partnership and moreover if we speak about foreign investors – it is necessary to provide transparency of energy market, investment climate stability, equal terms for all market players, functioning of independent regulator, define long-term strategy of energy market development in the country and to support the image of Ukraine among foreign investors”, — Eena Rybak, EUEA director sums up.

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