Volodymyr Groysman: Launch of the Energy Efficiency Fund to beef up efficiency and competitiveness of Ukraine

Energy-efficient measures, including the establishment of the Energy Efficiency Fund, will facilitate the achievement of energy independence of Ukraine, ensure its competitiveness and develop the national economy. Prime Minister of Ukraine Volodymyr Groysman stated this during the Ukrainian Energy Efficiency Forum’16, entitled "Energy Efficiency Fund, Ukraine’s Major Start-Up. Laws, Investment, Industry", on Thursday, June 23.

"We cannot today develop the national economy in such conditions of frantic energy consumption. We are not competitive. We need to be less wasteful, we must do everything to ensure that every energy resource of our country be used as efficiently as possible. Then we will be competitive," he pointed out.

The creation of the Energy Efficiency Fund is one of the mechanisms to attract investments into energy efficiency and increase the competitiveness of the country, the Prime Minister noted. "We need such a mechanism which will allow us to invest in energy efficiency, while becoming more competitive," he said.

The Prime Minister stressed the importance of transparent work of the Fund and curbing any corrupt influence in the energy sector. In this regard, he called on Vice Prime Minister, Minister of Regional Development, Construction Housing and Utilities of Ukraine Hennadii Zubko to involve experts and civil society in the creation of the Fund and the supervisory board.

The Prime Minister also expressed hope that in synergy with Ukrainian MPs it will be possible to work out the necessary legal framework that could be approved by the Parliament no later than the third or fourth quarter of this year and will ensure the Fund’s work from 2017. "This will enable us to invest more resources in order to be more energy efficient and, therefore, competitive," he emphasized.

Volodymyr Groysman noted that the developed countries are working on the introduction of renewables, while Ukraine consumes the largest amount of gas and other energy resources that serves to disadvantage the country and creates dependence on suppliers. "The issue of our energy efficiency influences a lot on our independence, on our economic, institutional strength," he said.

The Prime Minister reminded that one of the first steps of the Government was "unpopular but correct with respect to the country" decision to introduce the gas market-based price. This step will allow Ukraine to overcome corruption in the sector, contribute to achieving energy efficiency and stimulate an increase in its domestic gas production, he said.

"The market price for gas enables us, on the one hand, to curb corruption in the oil and gas sector, on the other hand, to launch energy-efficient mechanisms," underlined Volodymyr Groysman.

He noted that the existence of two or three gas prices in Ukraine has always led to "abuses by those who purchased gas." Due to such schemes, Ukraine lost at least $50 billion, the Prime Minister informed.

The Prime Minister believes that it is necessary to introduce alternative energy sources together with the development of Ukraine’s domestic production. Thus, the share of hydropower in electricity generation balance could reach 15.5%, compared with the current 8.6%. According to him, Ukraine possesses the necessary potential for such growth.

"It's energy independence, energy efficiency, energy production, jobs for Ukrainians and development of our national economy," he said.

The Prime Minister pointed out that the Government’s task is to transform subsidies into investment in energy efficiency. In particular, the energy sector is able to create about 50,000 new jobs, he highlighted.