During the operation of the Warm Loans program, almost 600 thousand families have taken advantage of it. Simultaneously, there are in effect 140 municipal programs that provide from 10% to 30% co-financing for energy-saving measures, as well as the IQ Energy program financed by the European Bank for Reconstruction and Development. The participants can receive a 35% compensation for the cost of goods and materials that they used for insulation and modernization of housing facilities. Deputy Prime Minister, Minister of Regional Development, Construction, Housing and Communal Services of Ukraine Hennadii Zubko wrote in his article titled The End of an Era of Energy Wastage in the Focus magazine.
"Such programs are an important part of the struggle for energy cost optimization, however, they do not provide a systematic approach to the solution of this issue. As a result, the state cannot assess the savings obtained as an output. The launch of the Energy Efficiency Fund will provide a completely different level of energy modernization in the housing sector. It is a key instrument for the successful implementation of the energy efficiency reform in the country", said Hennadii Zubko.
Apart from the financing, the Fund will provide technical solutions for thermal modernization. The Warm Loans program, along with smaller projects, will be supported by the private sector, while among the clients of the Energy Efficiency Fund, which will cover large-scale thermal modernization projects, will become multi-storey buildings, or rather condominiums. For the first 15 condominiums, the pilot projects have already been launched, thus allowing for testing procedures for all participants in the process - the Fund, banks and condominiums. Their total funding makes up about UAH 40 million. The Deputy Prime Minister emphasized that in the long term the Fund will have the capacity to handle 3000 applications plus per annum.
The top official also told that the model of the Fund's activities, all its procedures, operational activities, programs and products had been developed with the participation of representatives of the European Union and the German government. The IFC (International Finance Corporation) will be responsible for the management, thereby ensuring high standards of the Fund’s operation, maximum transparency and effectiveness of its activities and eliminating any possibility of corruption risks.
Apart from financing, provision of technical solutions and support for their implementation, the Fund will monitor further energy consumption in buildings. "It is critical for us to analyze how efficient was the energy audit of the building, what project has been offered, how much money spent on its implementation, and how quickly they paid off due to the energy savings as a result. In Europe, the practice of issuing an energy certificate for a building has been around for 40 years. And each deal of sale of housing in European countries is held on the basis of such a document. In Ukraine, they launched this practice only last year. The first 150 energy certificates of buildings demonstrated that the national residential sector sees the lowest scale of the development of energy efficiency", urged the official.
It’s worth noting that last year the Fund received UAH 1.5 billion from the State Budget. Another EUR 100 million to the account of the Multi-Donor Trust Fund was transferred by the EU and Germany. Those are funds for grant co-financing with the Fund. The size of the main part of the grant for package A "Light" makes up 40% of the cost of energy-efficient measures, for package В "Integrated" - 50%. All 300 first projects will receive an additional grant of 20%. Moreover, a possibility is considered to allocate another 20% of the total cost of the project for condominiums in which over half of residents are recipients of subsidies.