Energy efficiency in municipalities II

Project description

Title: Energy efficiency in municipalities II
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Ukraine
Lead executing agencies: Ministry for Regional Development, Building and Housing and Communal Services of Ukraine (Minregion)
Overall term: 2017 to 2020


Ensuring the supply of affordable, reliable and sustainable energy is a top political priority in the Ukraine. Due to significant increases in energy costs in recent years, consumers have been experiencing mounting pressure to conserve energy.

By 2020, the government plans to complete thermal energy retrofits for around 100,000 public buildings across the country. However, many municipalities lack access to the financing needed to carry out energy efficiency measures. Additional hurdles include insufficient data about the energy consumption of public buildings and inadequate expertise for developing eligible project proposals which exhibit convincing energy saving potentials.

Municipal energy management can help close these gaps and empower municipalities to take informed decisions on energy efficiency measures.

The current project builds upon the work of its predecessor project which addressed energy efficiency in municipalities. With support from this project and from other national and international initiatives, around 50 primarily large municipalities have made progress in promoting municipal energy management and implementing energy efficiency measures. However, most municipalities, and especially smaller towns, have been unable to benefit from this approach thus far. In order to make progress, they need advice and customised solutions that will allow them to move forward with energy efficiency projects in an affordable and effective way.


The prerequisites for disseminating municipal energy management have improved.


The current project promotes the development and dissemination of advisory and support services on municipal energy management which are optimally adapted to smaller municipalities. In the medium term, this will facilitate the introduction of systematic and cost-effective energy management along with the planning and implementation of energy efficiency measures. The project helps present energy savings potential in a clear and transparent manner, raise awareness of energy efficiency approaches across all segments of the population, and select measures on the basis of verifiable cost-benefit considerations. Municipalities and individual residents stand to equally benefit from energy efficiency modernisation measures and from energy and cost savings. In addition to reducing local cost pressures, the project also improves chances for achieving national climate targets by reducing greenhouse gas emissions.

The project focuses on three areas:

  1. Energy management in municipalities
  2. Planning and implementing energy efficiency measures
    The scope of advisory services offered by external service providers, particularly for smaller municipalities, is being expanded. These services are meant to help these locales introduce and operate municipal energy management schemes and support them in planning and implementing municipal energy efficiency measures. The project will help to enhance the capacities of these service providers. In addition, it will strengthen awareness and expertise among key municipal stakeholders on the benefits, options and instruments offered by energy management, and on technologies, cost-benefit analyses and project management approaches.
  3. Funding mechanisms for external service providers
    The funding mechanism is intended to promote the use of local energy services offered by municipalities and to invigorate the service market.

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