Today, December 24, 2019, the Minister for Communities and Territories Development of Ukraine, Aliona Babak, presented at the meeting of the Council for Development of Communities and Territories together with Oleksiy Honcharuk, the Prime Minister of Ukraine, presented a plan of action for reducing the value of public utilities for the population (up to 30 %), not the reduction of energy costs, but the efficient consumption and energy efficiency of residential buildings.
Ms. Babak spoke about such priorities of the Ministry at the 10th European-Ukrainian Energy Day, on November 14, 2019.
To date, the State Energy Efficiency Fund has been established and has begun to operate in Ukraine as one of the instruments for implementing energy efficiency measures. Currently, the nature of the Foundation’s work is to collect applications from co-owner associations.
However, practice has shown little activity, as such decisions at the level of apartment buildings can be long-lasting and require significant resources of conviction of the owners of apartment buildings. While tenants doubt / hesitate to make decisions, time goes by, utility bills remain high.
That is why, since 2020, the Ministry will strengthen the Fund’s work with a top-down concept. In 2020, it is planned to implement 1000 pilot projects in 10 cities of Ukraine on integrated solutions for energy-efficient measures in the residential sector. The ministry encourages cities to be active in assisting ACMHs in speeding up decision-making by providing all kinds of organizational and expert assistance.
Preliminary timetable for implementation of such an initiative is as follows in 2020: in January, cities send to the Ministry simple letters of readiness to join the facilitation of energy efficiency processes in cities, to improve the EE Fund’s work procedures under the new concept by March, March-July with the help of cities in the EE Fund, August-November implementation of energy efficiency measures, December – payment of the EE Fund grant. As the EEF Collaboration Instrument may also provide for condominium loan agreements with banks, the Ministry suggested that cities consider providing municipal guarantees to expedite the closure of all financial transactions.
According to the Prime Minister of Ukraine, in the residential sector there is considerable potential to reduce the consumption of energy resources and in some cases may even be 60%. Also, one apartment building generates an additional 10-25 jobs when implementing energy efficiency measures, and the city receives additional tax revenues from companies that sell its equipment and provide professional services in the sector. Therefore, this approach to reducing the cost of energy resources is the most rational way of energy efficiency measures.
We would like to remind that the EEF budget is UAH 1.6 billion. We would also like to add that in Ukraine there is legislation in place to use the ESCO mechanism, as an additional tool for energy efficiency measures, which is gaining popularity in the commercial sector in Ukraine.