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  • The launch of Energy Efficiency Fund will lead to economies in gas consumption and funding subsidies, says Vice Prime Minister
    posted 27 February 2017 16:30

    When launching the Energy Efficiency Fund, on condition it is appropriately funded, by 2021 we expect to save up to 1.5 billion cubic meters of gas annually. The sum worth UAH 5 billion will be economized from financing subsidies. The launch of the Fund opens up a new market of innovative energy efficient technologies. And it means 75 thousand new good paying jobs and up to UAH 10 billion additional tax revenues per year. This was announced by Vice Prime Minister Hennadii Zubko in the article "A heat reform: Ukraine’s maturity test" for the Mirror of the Week newspaper.

    "Ukraine has practically geared up for the launch of the Energy Efficiency Fund. However, there is a significant obstacle which is the lack of necessary legal framework. The Verkhovna Rada failed to adopt the relevant legislative package, which was designed to give the green light to energy efficient Ukraine," said Vice Prime Minister/ Minister of Regional Development, Construction, Housing and Utilities Hennadii Zubko in the article.

    "Four bills have been agreed with all shareholders. With the World Bank, IFC, EBRD, USAID, other international partners willing to finance the Fund's programs. They have the support of the expert community — the Reanimation Package of Reforms, the Civil network OPORA, Energy Efficient Cities of Ukraine, other influential civic initiatives," noted Hennadii Zubko.

    According to him, each of financial and technical support tools of the Fund will be available to both individual households and households in apartment buildings. The Fund will compensate for up to a half of the project costs for renovating the building.

    "There are 15 million households in Ukraine, half of which are located in 120 thousand apartment buildings. Almost 70% of the funds in the utility services bill structure make up heating and hot water supply. These particular services have the greatest prospect for savings — up to 60%. So, the housing stock has considerable potential for energy conservation," stressed Hennadii Zubko.

    Background

    The legislative package on energy efficiency includes the following:

    1.     The draft law "On Housing and Communal Services" (no. 1581-d) creates the conditions for competition in the market of housing services and allows consumers to conclude transparent contracts directly with service providers.

    2.     The draft law "On Commercial Accounting of Utility Services" (No. 4901) stipulates for compulsory metering. People shall pay only for the consumed services, but not for repairing pipes and losses within the networks, and have an incentive for carrying out energy efficient measures.

    3.     The bill "About Energy Efficiency of Buildings" (No. 4941) introduces a mechanism for obtaining a unified energy performance certificate for each particular building. The certificate contains information about the energy consumption for a building and recommendations for improving energy efficiency performance.

    4.     The draft law "On Energy Efficiency Fund" (No. 5598) will provide Ukrainian families with financial support and technical solutions to reduce energy consumption and utility costs.