Establishment of Energy Agencies in Ukraine

Project description

Title: Establishment of Energy Agencies in Ukraine
Commissioned by: German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB)
Country: Ukraine
Lead executing agency: Ministry of Regional Development, Building and Housing and Communal Services of Ukraine
Overall term: 2014 to 2017

Ukraine. Decision-makers from Odessa Municipal Energy Agency (OMEA) on a study trip in 2015. © GIZ

Context

Increasing energy efficiency – this is a topic that enjoys high priority in Ukraine. The State Target Economic Programme on Energy Efficiency for 2010-2015 aims to reduce energy intensity by 20 per cent in comparison with 2008, aligning it with the level in western industrialised countries and with EU standards. This target is primarily intended to make energy supplies more secure and lower Ukraine's dependence on fluctuating energy imports and on fossil energy sources while reducing production and energy supply costs. If it is to meet these energy efficiency specifications, Ukraine has to map out corresponding policy programmes along with provisions for their implementation. The need to carry out energy efficiency measures is particularly urgent at the regional and local level.

Objective

Potentials for saving energy and raising energy efficiency in Ukraine are identified. Corresponding measures designed to save energy are implemented, thus reducing climate-damaging gas emissions.

Approach

On behalf of the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) GIZ is advising the Ukraine Government on creating a suitable national legal framework that will promote energy efficiency measures at the local level. Furthermore, GIZ is assisting two regions to set up and pilot energy agencies. These agencies are to provide ongoing support to municipalities on rolling out energy efficiency and energy-saving activities at local level.

The Ukrainian Government acknowledges energy efficiency as a key area of activity. However, when it comes to developing and implementing guidelines and concepts, the country needs more specialist, institutional and individual know-how across the board. GIZ is therefore advising the government on how to continue developing the political conditions required for energy efficiency at national level. To realise energy efficiency projects at local level and to educate the broader public about energy issues, the project is helping its partners to set up energy agencies.

The need for action is pressing. This applies not only to industry but also to public administration and the housing sector. Decision-makers have insufficient knowledge about the various ways in which energy can be saved and energy efficiency increased. Neutral advisory services are not available and, as a rule, neither the providers nor the customers are aware of the technical and financial solutions that would suit them best. Often there are no financing options or insufficient experience is on hand to make full use of them. This lack of knowledge and low demand for services and products are holding back market development in this sector.

Results

The project has helped to establish the country’s first energy agency – Odessa Municipal Energy Agency (OMEA). On behalf of the city, and with the support of the project, OMEA is introducing an urban energy monitoring system that measures the energy consumption of more than 500 municipal properties. Consistent monitoring will lead to direct energy savings of around 5 per cent. Alongside its achievements in municipal energy management, OMEA was also able to acquire about half a million euros in funding to modernise three schools and kindergartens in the city.

National studies and analyses conducted by the project are being used a basis for important reforms in the area of energy efficiency. The ministries and Cabinet of Ministers of Ukraine often refer to the results achieved.