The Law of Ukraine “On Energy Efficiency”, adopted by the Parliament on October 21 this year, was signed by the President of Ukraine.

The main purpose of the law is to create new framework conditions for stimulating energy efficiency in all sectors of the economy.

It is important that the law lays the foundation for funding government energy efficiency programs. The final provisions of the law state:

  • annually provide expenditures on energy efficiency improvement programs not less than 1% of the expenditure part of the budget in the draft law on the State Budget of Ukraine for the relevant year;
  • instructing the government to develop and approve state target programs for the energy modernization of the housing stock, heat energy producers, water supply and sewerage enterprises.

“Thus, it will contribute to solving the issue of financing state energy efficiency programs. After all, it is unacceptable to deprive consumers of the opportunity to receive support in order to insulate their houses and save on utility bills,” commented Valerii Bezus, head of the State Agency on Energy Efficiency and Energy Saving.

The Department of Communications and Public Relations of the State Agency on Energy Efficiency informs that the State Agency on Energy Efficiency has already developed a draft decision on the extension of the State Energy Efficiency Program until 2027. The corresponding draft resolution has been submitted to the government.

The program provides for an expanded range of measures, namely to support energy efficiency not only of private households, but also of centralized heat supply, drinking water and sewerage systems. This will reduce the use of electricity and heat, as well as the annual loss of drinking water.

The law also removes the technical barriers that made it difficult to conclude ESCO contracts, and provides full-fledged capabilities for the development of energy services. This mechanism attracts private investment in the modernization of state owned organisations. Average annual savings for completed ESCO projects are 35%.

Among the important provisions of the law are also the following:

  • receipts for payment for natural gas distribution services will include information on energy efficiency measures;
  • large enterprises are required to conduct an energy audit every 4 years, unless a certified energy or environmental management system is in place. This will help to optimize energy costs;
  • state and local authorities should purchase equipment that meets the highest energy efficiency class. The use of just such equipment will save more money in the future than the purchase of non-energy efficient equipment.