It illustrates that the mechanism of targeted use of these tax funds stimulates the
rational use of energy, helps to optimize production processes and implement energy efficiency measures. The fund will create a guaranteed source of funding of
UAH 1.35 billion per year from the state budget for energy efficiency purposes. The relevant draft law has already been registered in the parliament.
In addition, our initiative is to launch «green» bonds in Ukraine. Step by step, together with the National Securities and Stock Market Commission of Ukraine and
international partners, we are laying the legal foundation for «green» bonds. The law has already been adopted, the bylaws have been prepared, and at the same time pilot projects are being sought for their release. We concentrate on municipal «green» bonds, and the State Agency on Energy Efficiency and Energy Saving of Ukraine will be responsible for their verification. For example, each municipality
can develop a local energy efficiency program and issue green bonds to implement it. Thus, it is possible to invest in the insulation of kindergartens, hospitals, in
the modernization of district heating facilities, etc. In general, according to the International Finance Corporation (IFC), the potential of the Ukrainian market
of energy efficiency and «clean» energy by 2030 – $73 billion. Half of them – $36 billion – can be raised through the issuance of «green» bonds. After all, such an
issue will attract «green» funding at an affordable cost and stimulate the socio-economic development of the regions. Communities can benefit from a number of points, including reducing energy consumption and cost savings, reducing CO2
emissions and improving the environment, disseminating green technologies in both the short and long term, boosting economic processes, business operations,
including in related industries, and ensure revenues to the budgets of different levels, increase employment, improve investment attractiveness and competitiveness of local communities, positively affect the quality of citizens' lives in general.
Speaking of renewable energy sources – is there any reasonable hope that they will keep developing in Ukraine?
Of course, there is hope. Even more – goals, aspirations, plans and initiatives. After all, the whole world is no longer thinking about whether a «green» transition is
needed, but is working on the most efficient ways of this transition.
This is also clearly shown by statistics. A record $501.3 billion has been allocated worldwide for decarbonization in 2020. This is 9% more than the previous year,
despite all the economic difficulties caused by the pandemic. 10 years ago, in 2010, this amount was $235.4 billion. This is stated in the report by BloombergNEF «2021 Energy Transition Investment Trends». It is important that we are talking not only about investments in renewable energy, but also the development of energy efficiency, reduction of CO2 emissions and more.
The use of «clean» energy is the future we are creating today. And this process cannot be stopped. Despite the difficulties of different nature, the need of communities for projects on energy efficiency, renewable energy, ecology remains
and must be met.
What is the plan for this year – what should happen on the way to
our energy transition?
This year it is important to bring to a logical conclusion the work on legislative initiatives, in particular, to come to agreement with interested bodies and submit to the Verkhovna Rada of Ukraine a number of bills on introduction of a transparent
market mechanism of solid biofuel trade, stimulation of energy crops, development of the biomethane market, establishment of a zero tax on CO2 emissions for biofuels.
We also expect a number of bills to be adopted by the Verkhovna Rada of Ukraine. «On Energy Efficiency» – should establish new framework conditions for the development of energy efficiency in Ukraine, implement the relevant EU Directive
and replace the outdated Law of Ukraine «On Energy Conservation» dated 1994. Draft Law on the Mandatory Use of Liquid Biofuels (Biocomponents) in the Transport
Industry (Reg. № 3356-d dated November 5, 2020) provides for the development of the production, circulation and use of liquid biofuels in transport. Its adoption will help reduce energy dependence, in particular on oil and petroleum products, whose imports in 2019 amounted to about $ 5.7 billion. And the bill on the development of highly efficient cogeneration (registered №4527 dated December 21, 2020). Its adoption will create conditions for the development of highly efficient cogeneration in Ukraine in compliance with the principles and provisions of European Union law.
Furthermore, we are planning to submit to the government a draft of a new National Energy Efficiency Action Plan until 2030, developed jointly with the Secretariat of the Energy Community. We will join the best practices of an integrated climate and energy plan.
From 2022 on, it is planned to launch a new 5-year targeted program on energy efficiency, which will cover not only the household sector. Currently, together with the Ministry of Energy, a draft Concept of a new state target program for energy efficiency and development of «green» energy for the next 5-year period (2022-2026) has been prepared. The adoption of a new target program this year is critical.
Apparently, in 2021 we continued the popular and requested among citizens program of state support «Warm Loans», in particular, for individual homes. The
«Energodim» program of the Energy Efficiency Fund works for housing
How can ordinary people contribute to the country's energy transition?
In fact, the success of our energy transition will depend on the behavior of each citizen. I want to draw attention to the condition of our residential buildings. The
household sector remains one of the largest energy consumers. This, of course, is reflected in utility bills. The introduction of a set of energy efficient measures makes it possible to reduce consumer spending on energy resources by up to 50% and even more. This is evidenced by the experience of participants in the program «Warm Loans». More than 850,000 families invested UAH 8.5 billion in energy
efficiency measures, and the state returned UAH 3.3 billion. Thanks to participation in the program, they now save money on utility bills and have comfortable living conditions.
Therefore, every conscious citizen should pay attention to both the priority of low-cost and «behavioral» measures, and investment in improving the energy efficiency of their own homes. Since 2014, the state has been co-financing such measures and continues to do so. By the way, the program «Warm Loans» has already been launched this year. Residents of individual houses can apply to authorized banks and raise loans for energy efficient equipment, solid fuel boilers, as well as for the installation of electric storage systems, electric chargers for electric vehicles, smart electricity meters.
The number of families consciously switching to «clean» energy is growing rapidly. If at the end of 2015 there were about 240 families with solar panels, by the end of 2020 – almost 32 thousand of such families.
The total capacity of the installed SPPs is 835 MW. Ukrainian families have invested about 640 million euros in all power plants.
This popularity of SPPs among households is explained by the desirable opportunities to save on electricity bills, to be autonomous and not dependent on the energy supplier –provided the installation of battery equipment or a combination of different technologies. In addition, SPP is an additional incentive for families to change their behavior to energy-saving: analyze energy consumption, use energy-efficient electrical appliances and increase energy efficiency at home.
All these families make a significant contribution to their own energy independence and autonomy, as well as to the development of a large-scale Ukrainian market
for services and equipment in «green» energy.
What can and should businesses do on the way to energy transition?
In our country, models of attracting and stimulating business to implement projects in the field of energy efficiency and renewable energy have been created and
continue to be refined. The implementation of energy efficiency measures or the use of renewable energy sources can reduce energy consumption of enterprises and
reduce energy consumption of products. This is especially true for industrial enterprises, as they are one of the most energy-intensive sectors in Ukraine, consuming about a third of all energy in the country.
For example, for the industrial sector, the priority is the introduction of energy management systems, energy audits, modernization of production processes,
involvement of energy service companies, energy labeling and standard information on energy consumption and other resources in the production of energy intensive
products and more.
It is important to remember that the optimization of energy consumption by the business itself, for example, an industrial enterprise, is a matter of competitiveness both within the country and abroad. The use of the latest technologies in the
implementation of projects for the energy transition also contributes to innovative development.
In general, our priority is to create and ensure clear and transparent rules of the game, where business can be profitable without government intervention, as well as
providing effective public financial support where there is currently no economic profitability and rapid payback of projects.