The year 2018 became a breakthrough for the development of the energy service (ESCO) in Ukraine. Hence, during only one year, 210 ESCO-contracts to the tune of UAH 218 million were concluded, which exceeds tenfold the amount in 2016. Projects are being implemented in 12 regions of Ukraine.

According to preliminary calculations, the implementation of the aforesaid ESCO projects will allow obtaining an average of 20% to 70% energy savings.

In addition, in spite of the New Year's and Christmas holidays period, in the first week of 2019, nine contracts worth UAH 14 million have already been concluded in Kyiv.

Such rapid development of the energy service was due to the improved legislative framework in 2017.

"In particular, ESCO-purchases were transferred in the system of electronic public procurement ProZorro. Also, the opportunity was introduced to conduct one tender for a "pool" of facilities and the maximum term of the contract was increased from 10 to 15 years", said Serhii Savchuk, Head of State Agency for Energy Efficiency and Energy Saving.

In 2018, an advanced ESCO-partnership was introduced, in the framework of which certain share of energy-efficient measures are performed by the customer of the energy service, and the rest – an ESCO-investor. At that, the savings are distributed in accordance with the depth of energy-efficient solutions proposed by the parties.

As of today, 5 pilot cities - Odesa, Nizhyn, Slavutych, Borodianka and Savran - have already announced 9 ESCO-tenders under such a model of an in-depth partnership.

Apart from budget institutions, an ESCO-mechanism has become a demand for state-owned objects. The first 4 energy service contracts in Ukraine for the modernization of the pump stations of the State Water Resources Agency have already been concluded. According to preliminary estimates, the implementation of these projects will allow to save up to UAH 310 thousand of budget funds during the term of contracts, and after their completion - more than UAH 3 million per year.

Moreover, 17 ESCO-tenders were announced on the facilities of the Ministry of Education and Science (Taras Shevchenko National University of Kyiv, National University of Food Technology, KII named after Sikorsky and National Aviation University) and 11 tenders on the facilities of the State Statistics Service.

There are also 66 tenders next in turn on the facilities of the Ministry of Education and Science and the State Emergency Service (SES). Cooperation is prolonged with the Ministry of Internal Affairs, the Ministry of Defense, the State Reserve Agency and the State Water Resources Agency.

The ESCO can be a good alternative to "warm loans." At the funds of ESCO-investors, the first 6 ESCO-agreements are implemented in condominiums in the cities of Kyiv and Kherson.

"I believe that the year 2019 will become an additional impetus for the wide introduction of the energy service and opening of the market of these services with the total amount of over USD 8.5 billion", said the Chairman of the Agency.

According to Serhii Savchuk, a group of deputies, in cooperation with the State Agency for Energy Efficiency and Energy Saving and UNDP experts developed and registered in the Parliament the bills dated 10.12.2018 № 9386 and № 9387 on the improvement of ESCO-legislation.

Adoption of the bills will promote:

- the concluding of more ESCO-agreements;

- leveraging investments, including from foreign investors, to the energy service;

- implementation of integrated energy efficiency measures under ESCO-contracts.