On September 3, 2019, a full-scale launch of the Energy Efficiency Fund (EEF) took place. Now, each of the 31.5 thousand condominiums in Ukraine wishing to increase energy efficiency of their buildings can participate in the EnergoDim Multifloor Complex Modernization Program.

“In Ukraine, the need for investment in the energy efficiency of buildings is extremely high: about 144,000 buildings, which makes up 80% of all apartment buildings, need modernization. Before, the state-supported residential stock through the Warm Loan program, which was solving the problem only partially - to replace the windows or insulate the facade of the building", said Minister of Community and Territory Development Aliona Babak during a press conference devoted to the presentation of the program to support the energy modernization of apartment buildings EnergoDim.

According to her, condominiums received from the EEF a new tool for integrated energy modernization of buildings - the EnergoDim Program. The program is currently funded from the State Budget - in 2018, the sum worth UAH 1.5 billion was allocated and this year it is planned to allot UAH 1.2 billion, as well as financial support from the EU and the Government of Germany to the tune of EUR 100 million.

“Stable financing, quality control at all stages of work, and complex insulation of buildings are the main novelties offered by the Energy Efficiency Fund compared to the Warm Loan Program. Residents can choose one of the options of the complex measures: the Light package will allow reducing the average heating consumption by 20%, the Integrated package - by 60% of the current consumption, which will reduce households' expenses for utility services”, Aliona Babak added.

The Fund's activities are funded from the State Budget of Ukraine as well as with the financial support by the EU and the Government of Germany.

Starting September 3, 2019, housing cooperatives can apply for participation in the EnergoDim Program through all branches of partner banks, the first of which is the state-owned JSB Ukrgazbank.

Yulia Holovatiuk-Ungurianu, Director of the Energy Efficiency Fund, emphasized: “The Fund, as a tool for financial support for energy efficiency for condominiums, should become a national success story. The EnergoDim program is a mechanism for comprehensive modernization of the housing stock of Ukraine. The implementation of the program will allow Ukrainians apart from saving on utilities and improving the energy efficiency level of housing facilities, also to ensure compliance with our country's international commitments in the sector of energy efficiency, will help reduce the level of greenhouse gas emissions and ensure the implementation of energy efficiency measures and effective use of energy resources.”

According to Johannes Baur, Head of Energy, Environment, Transport Section of the EU Delegation to Ukraine, energy efficiency is one of the most important and successful areas of cooperation between the European Union and Ukraine. The long-awaited reforms in this area have enabled the EU to provide significant support to the country. Through the Energy Efficiency Support Programme for Ukraine (EE4U), we have provided 104 million in grants and technical assistance to the Energy Efficiency Fund. It is one of the largest existing programs in Ukraine. And it shows how important for the EU is the topic of energy efficiency reforms.

According to official statistics, about 50 percent of the gas used to heat the housing stock is wasted annually in Ukraine.

Energy efficiency is also considered a significant part of the Government's efforts to combat climate change.

Background

The Energy Efficiency Fund (EEF) supports multi-apartment buildings' associations (condominiums) to implement energy-efficient activities through grants and integrated technical solutions, taking into account European best practices for energy-efficient building modernization.

The EnergoDim program provides for partial cost recovery for energy efficiency measures of 40% of the cost of acceptable measures/works for the Light package and 50% for the Integrated package.

The Energy Efficiency Fund program is being implemented in collaboration with the International Finance Corporation - IFC, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the United Nations Development Program (UNDP).