Energy Efficiency Projects in Ukraine

Kyiv City State Administration engages ESCOs in residential sector 30.03.2017

Since beginning of 2017 Kyiv City State Administration (KCSA) supported by the project “Establishment of Energy Agencies in Ukraine” started active work with residential buildings, in which condominiums and cooperatives are created, in direction of implementation of energy saving projects with a goal to demonstrate realization of energy performance contracts mechanisms.

Energy Performance Contracts (EPC) is one of the wide-spread solutions in the world, allowing to attract investment funds for energy efficiency measures in the social as well as in the housing sector and to return investment due to savings. Realization of energy performance contracts is carried out by specialized energy service companies (so-called ESCOs), that provide fundraising, engineering services, management of financial and technical risks connected with the implementation of projects on energy saving and energy efficiency. In some models of contractual relations ESCO also provides guarantees of payback and a certain level of energy savings.

Currently, representatives of the KCSA with the consultant support of Project experts selected the first houses in Kyiv, which technical and economic characteristics suit best for the application of the EPC mechanism. As the next step, on 16 March the first official meeting with representatives of selected condominiums and cooperatives took place. The meeting was attended by the Deputy Head of KCSA Petro Panteleyev, representatives of the Housing and Communal Infrastructure Department of the KCSA, experts and senior coordinator of the project “Establishment of Energy Agencies in Ukraine”. During this informative meeting representatives of buildings, which were identified for potential implementation in energy efficiency projects by involving ESCOs, were presented EPC mechanism and advantages of its implementation in detail.

There is still much hard work ahead. But understanding the fact, that it will be the first experience of ESCO involvement in the housing sector in Ukraine and that this experience has to serve as a model and to gain popularity not only in Kyiv, provides inspiration and encourage all participants of this process.