Advisory services for energy efficiency in companies

Project description

Title: Advisory services for energy efficiency in companies
Commissioned by: Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Ukraine
Lead executing agency: Ministry of Economic Development, Trade and Agriculture of Ukraine
Overall term: 2017 to 2021

Context

The energy intensity of Ukraine’s economy is three to four times higher than the EU average. The industry and trade sectors account for over 40 per cent of energy consumption. There are more than two million companies in Ukraine, most of them small and micro enterprises. In contrast to other consumers, commercial customers pay non-subsidised market rates for electricity and gas. The high energy costs are putting a strain on companies and making them less competitive.

Small and micro enterprises, in particular, have the potential to reduce their energy consumption by 30 to 50 per cent. There is very limited awareness in Ukraine of this energy-saving potential or of measures to boost energy efficiency. Companies are not yet carrying out energy-saving modernisation measures, which would both reduce greenhouse gas emissions and decrease the country’s dependence on imported energy.

Objective

Energy-saving modernisation measures in Ukrainian companies lead to an exemplary reduction in greenhouse gas emissions.

Approach

The projects operates on three interconnected levels with the aim of initiating energy-saving modernisation measures in Ukrainian companies and implementing pilot measures with an impact on climate change:

  • Advice for companies. The project supports Ukrainian associations, energy agencies, training institutions and other service providers in setting up a services and training market for companies on the topic of energy efficiency.
  • Pilot measures in selected companies. Pilot projects demonstrate the technical and economic feasibility of selected energy efficiency measures and serve as models for the countrywide dissemination of energy-saving solutions. The project provides advice on implementation.
  • Incentive structures and support schemes. The project advises selected ministries, for example the Ministry of Economic Development and Trade, and downstream authorities such as the State Agency of Ukraine for Energy Efficiency and Energy Saving on designing support and incentive structures in order to enhance energy efficiency in companies.

Results

GIZ supports around 100 companies in planning and implementing energy efficiency measures – through energy audits and hands-on training for approx. 400 experts and managers, for example. 

A nationwide campaign for energy audits in four areas reached 69 companies. By implementing more than 300 measures, these companies could potentially save 100 gigawatt hours and 46,600 tonnes of CO2 emissions a year. This is equivalent to the annual energy consumption of around 51,800 Ukrainian homes. 

The companies receive support as part of learning energy efficiency networks (LEENs). In three pilot networks, members exchange ideas and receive advice. The 34 member companies have undertaken to save more than 10,000 megawatt hours of energy and cut their CO2 emissions by around 6,000 tonnes by the end of 2020. 

Together with GIZ, the Kyiv Chamber of Commerce and Industry is setting up a European Energy Manager (EUREM) training programme in Ukraine: practical training sessions in energy-efficient technology that participants can attend alongside their regular jobs. So far, more than 50 people from companies and service providers have taken part in the internationally recognised programme. 

A ‘white paper’ was developed together with representatives from government institutions and the private sector. The Ukrainian Government thus has a legal framework with which to establish concepts and financing instruments to promote energy efficiency within companies in Ukraine.

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