The concept of an Energy Efficiency Fund presented

22.02.2016

The Ministry of regional development, construction and housing and communal services of Ukraine presented the concept of an Energy Efficiency Fund, the mechanism to ensure a sustainable financing of modernization projects of houses with the aim of reducing the use of gas for Ukraine in a half.

The document was developed by the Ministry of regional development of Ukraine together with partners from the European Union, Germany, the specialists of the World Bank Group in Ukraine, a focal point for interaction with the Cabinet of the President of Ukraine and the SAEE.

Ukraine heavily depends on energy imports, the majority of which is natural gas. Currently this factor is used to exert economic and political pressure on the state, so the energy independence is a task of national security of Ukraine.

At the macroeconomic level, one of the main problems of the energy sector in Ukraine is the imperfection of the mechanism of heating in the residential sector, where there is about 60% of energy consumed or nearly $ 3 billion annually. In 2015-2016 this  difference finances by the State Budget accumulating of external borrowing.

The Fund shall be involved into the financing of projects of energy efficiency in houses which are subsidiesed for housing and communal services that get more than 30% of households in Ukraine. Thus, the amount of money which is now laid in the Budget of Ukraine for these purposes, can be used to invest in energy efficiency measures. Moreover, in practice Central and Eastern Europe, establishment of EE Fund, technical support to the implementation of the projects and their development needs to occur with the active participation of donors and international financial institutions.

One of the prerequisites for the establishment of the Fund is that it must be approved at the state level mechanism for its continued funding and implementation of the relevant EU directives. The Report presented will provide the basis for a common strategy and joint action of many stakeholders: the Ministry of Finance of Ukraine, Ministry of social policy, NCRCP, “Naftogaz”, the Ministry of energy, Ministry of economy, world Bank, IMF, EIB, EBRD. Required attributes of the EE Fund should be transparent to the management Committee, Supervisory Board, Technical Office and international audit activities.