Ukraine's leadership on LEDS
Case StudyNational energy efficiency action plan implementation
Ukraine is facing unprecedented energy security challenges as a result of ongoing geopolitical and financial crises. Improving energy efficiency across the economy could strengthen energy security by decreasing the country’s reliance on fossil fuel imports, reduce pressure on public budgets that have historically shouldered billions of euros a year in energy subsidies (although some energy subsidies are now being phased out), reduce costs to consumers and improve the comfort and health of its residents.
The good news is that there is a large potential for energy efficiency gains in Ukraine. Measures to tap Ukraine’s energy efficiency potential are described in the report below entitled 'Energy Efficiency Policy Priorities: Ukraine'. More than 80 Ukrainian energy efficiency stakeholders contributed to the findings in this report, which recommends the widespread rollout of residential building envelope refurbishments, installation of building energy control systems and meters, replacement of inefficient appliances and equipment (including motors), information campaigns to reduce wasteful energy consumption and other programmes across sectors.
Case StudyRenewable energy financing facility
The objective of the Renewable Energy Program is to help demonstrate that clean energy projects can be successful in Ukraine while helping to reduce risks for future investors and also addressing some of the early entrant barriers related to establishing precedents and reducing costs.
This program has been allocated US$75 million of Clean Technology Fund (CTF) resources and consists of three projects, two of them led by the European Bank for Reconstruction and Development (EBRD) and one by the International Finance corporation (IFC). The EBRD Ukraine Sustainable Energy Lending Facility (USELF) is aimed at providing finance to project developers that who equity and cannot raise capital on a commercial basis for all renewable technologies and project volumes ranging from US$1 million to US$150 million.
Another EBRD project is aimed at supporting the expansion of an existing Novoazovsky Wind Farm by 34 MW to 59 MW. The focus of the IFC program is to support a 50-70 MW wind project thought its Ukraine Renewable Acceleration Energy Project (U-REAP). This project is expected to require €24-25 million (approx. US$35 million) of CTF funds, leveraged by up to €30 million (approx. US$42 million) IFC funds and up to €66 million (approx. US$92 million) private sector funds. Another US$1 million is expected to be used for advisory work related to developing the renewable energy sector.
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