Energy efficiency

State of compliance

Ukraine started drafting the Law on Energy Efficiency in July 2015 based on a draft provided by the Energy Community Secretariat. After many rounds of consultations with Ukrainian stakeholders and continuous support, the Secretariat received, in May 2019, the amended draft Law from the Ministry of Regional Development, Building, Housing and Utilities for comments. The Ministry is the body officially responsible for steering the Law through inter-ministerial consultations; nevertheless these were stopped due to presidential elections in April and parliamentary elections in July 2019 and will need to be repeated with the new Government in office.

  • Energy Efficiency Directive

    Energy Efficiency Directive

    Ukraine’s legal framework currently consists of a Law on Energy Conservation from 2004. It has not transposed the Energy Services Directive nor the Energy Efficiency Directive to date.

    A Law on Commercial Metering of Heat Power and Water Supply aiming to transpose provisions of Articles 9, 10 and 11 of Directive 2012/27/EU was adopted by the Parliament in June 2017. Article 14 of Directive 2012/27/EU is being transposed through amendments to the Law on co-generation, which is currently being debated in the Parliament.

    The work on the transposition of the Energy Efficiency Directive continues, but Ukraine missed the reporting deadlines foreseen by the Directive, as follows:  30 March 2017 for Article 4, 1 January 2017 for Article 5, 15 March 2017 for Article 7, and 30 June 2017 for Article 24 (1). Nevertheless, on 3 March 2018, State Agency for Energy Efficiency sent to the Secretariat the first Annual Report, in line with Article 24 (1), which shows progress towards achieving the 2020 EEAP target. The second Annual Report was submitted to the Secretariat  in November 2018, but the third one, due in June 2019, is still pending.

  • NEEAPs and targets

    NEEAPs and targets

    Ukraine, having joined the Energy Community in October 2011, has adopted the EEAP for 2015 - 2020 in 2015 setting the energy savings target for 2020, which gave it a different timeline than the Western Balkan Contacting Parties. The overall energy efficiency target in line with the Energy Efficiency Directive for 2020 was finally adopted by the Government in August 2019.

    The  first draft EEAP, in line with the Energy Efficiency Directive, was prepared  and consulted with the Secretariat in June 2019. It covers the period 2019 – 2030 with a reporting deadline on the achievements by 2021, in order for Ukraine to be aligned with the other Contracting Parties and respond to the requirements of the Energy Efficiency Directive.

  • ESCO market development and financing

    ESCO market development and financing

    In 2017, a Law amending the legislation on energy services procurement that is very relevant for ESCO projects was adopted by the Parliament. The Law aims to provide an effective mechanism for ESCO procurement under the Law of Ukraine "On public procurement", which specifies provisions of the Law "On introduction of new investment opportunities, guaranteeing the rights and legal interests of business entities for thermo-modernization" in order to support the development of an ESCO market in Ukraine.

     As a result, ESCO projects are progressing for buildings renovation, with the first energy pperformance ontracts signed for both central government buildings and residential ones. The “Law on Energy Efficiency Fund” to support energy efficiency measures in the residential sector was adopted by the Parliament in 2017

    The Energy Efficiency Fund was registered as a legal entity in June 2018, and the necessary secondary legislation for launching the Fund was passed. The Ukrainian Government has pledged a contribution of approx. EUR 53 million in 2018 and EUR 57 million in 2019.

    In parallel, a multi-donor trust fund managed by the International Finance Corporation (IFC) was set up; this is funded by a contribution from the EU of EUR 104 million, and from IFC of approx. EUR 214 million. In addition, the Swiss Government offered EUR 1.8 million to finance technical assistance.

    Both instruments co-finance energy efficiency renovation projects in collective apartment buildings through grants and loans.

  • Energy efficiency in buildings

    Energy efficiency in buildings

    The Law transposing the Energy Performance of Buildings Directive was adopted in 2017, and since then, thirteen of the fourteen by-laws needed for its implementation were adopted by the Cabinet of Ministers. The last one, a procedure for obtaining self–regulatory status by organisations in the field of energy efficiency (not required by the Directive, but the Ukrainian Law) was prepared in 2019, but not yet adopted. A total of 43 universities and 873 specialists have been accredited and are active in the implementation of the EPBD’s requirements on energy performance certificates and inspection of heating and ventilation systems.

    Overall, Ukraine has made significant progress in implementing the EPBD.

  • Energy efficient products - labelling

    Energy efficient products - labelling

    Ukraine has largely transposed the current technical labelling regulations, the deadline for which expired at the end of 2018 (on household dishwashers, household refrigerating appliances, household washing machines, televisions, air conditioners, household tumble driers, domestic ovens, hobs and range hoods, vacuum cleaners,  water heaters and storage tanks, electrical lamps and luminaires, (ten out of a total of eleven). The country drafted in 2019 the last remaining one, on space heaters, and four new technical regulations on residential ventilation units, professional refrigeration, local space heaters and solid fuel boilers, adopted by the Ministerial Council in 2018 (Decision 2018/03/MC-EnC) and due by 2020.  Having this is mind, Ukraine is very advanced in terms of being fully compliant with implementation of all Energy Community acquis on labelling.

  • Institutional capacities

    Institutional capacities

    The Ministry of Energy and Environmental Protection is the authority responsible for the development of state policy in the field of energy efficiency in Ukraine (except for energy efficiency in buildings), while its implementation lies within the State Agency for Energy Efficiency and Energy Saving. The Ministry for Community and Territory Development of Ukraine is the authority responsible for the development of state policy in the field of energy efficiency in buildings.

    The responsibilities in terms of drafting laws and by-laws are split between the two institutions and this sometimes leads to delays in taking a decision and finalising documents. In the Secretariat’s view, the process of preparation of the energy efficiency legal acts is long and cumbersome due to lack of institutional capacity in both institutions. The two bodies should be significantly strengthened through capacity building.