The Law “On Energy Efficiency” came into force in Ukraine implements provisions of the EU Directive 2012/27 on energy efficiency and Directive 2009/125 / EU on ecodesign requirements for energy-related products into national legislation.

Expected changes from the implementation of this law:

  • municipalities will have energy plans and heat supply development schemes, an energy management system will be introduced and equipment with a high class of energy efficiency will be purchased at the expense of the local budget;
  • public authorities will be required to purchase high-efficiency equipment and introduce energy management for their buildings;
  • large industrial enterprises will conduct an energy audit or develop energy management system;
  • an electronic energy efficiency monitoring system will be introduced.

Even though the law will give impetus to the development of many areas for energy efficiency in Ukraine, unfortunately, some provisions of the EU Directive 27 were not reflected in the new legislation:

  • develop a long-term building renovation strategy (Article 4 of Directive 27)
  • obligation to renovate each year 3 % of the total floor area of public bodies’ buildings (Article 5 of Directive 27).

In Ukraine, buildings (residential and service sector) is one of the largest energy consumers, which accounts for 37% of the country’s energy use. Currently, the thermal modernization of buildings is slowly gaining momentum. However, there are still many challenges that impede the scale-up of the renovation of buildings. These include financing instruments, energy efficiency requirements, and challenges related to retrofit of residential buildings without home-owner associations (HOAs), as currently, less than 20% of multistory residential buildings have HOAs. The long-term strategy of renovation should contain answers to these questions.