In-Depth Review of Energy Efficiency Policy of Ukraine

This first in-depth review of energy efficiency policy of Ukraine was carried out in 2013, following an invitation from the State Agency on Energy Efficiency and Energy Savings of Ukraine. The review team that visited Kiev comprised officials from Austria, Kazakhstan and the Slovak Republic and the energy efficiency team of the Energy Charter Secretariat.
The report concludes that the government of Ukraine should recast and adopt as soon as possible a national energy strategy. Such a recast needs to be based on well-founded assumptions, realistic projections and the acknowledged potential for energy efficiency gains. Furthermore, the review team recommends that high standards of governance be obtained in the formulation of the country’s energy and energy efficiency policy and in its implementation through energy market liberalisation, utility privatisation and the regulation of competition.
The review team recommends that multi-annual state funding be allocated to leverage the huge energy efficiency potential of the Ukrainian economy to improve welfare, competitiveness and the environmental impact. Necessary reforms have to take place to allow for multi-annual municipal budgeting and for the retention of savings resulting from investment in energy efficiency, so as to provide appropriate incentives for municipal actions.
Regarding energy markets and pricing, the report suggests that an integrated approach be taken by the authorities to individual metering, end-use efficiency, comfort and other benefits in tandem with price rises, at the same time ensuring that energy affordability is closely monitored and that remedial actions to alleviate hardship are taken whenever necessary.