7th Donor Coordination Council Meeting: The Parties discussed the development of the Energy Efficiency Fund

On July 1, the seventh Donor Coordination Council Meeting was held to discuss the implementation of strategic plans of the development of the Energy Efficiency Fund and Energy Supply Modernization Support Program “Energodim”.

The meeting was attended by the representatives of the Ministry of Community and Territorial Development of Ukraine, SI “Energy Efficiency Fund”, the European Union Delegation to Ukraine, the European Commission, the World Bank, the International Finance Corporation (IFC, World Bank Group), GIZ – Ukraine, UNDP – Ukraine.

It is planned that the parties will determine the possibility of extending the additional grant for participants of “Energodim” program in the coming weeks.

The necessity to co-finance the authorized capital of the Energy Efficiency Fund was one of the main issues at the discussion.

Oleksiy Chernyshov, Minister of Development of Communities and Territories of Ukraine greeted those present and noted that energy efficiency is one of the top priorities in the work of the Ministry of Regional Development.

Each million hryvnias of the grant from the state budget and the Multi-Donor Trust Fund additionally attracts another 500 thousand hryvnias from HOAs. I am convinced that the Energy Efficiency Fund is capable and has to implement advanced and complex projects of thermal modernization of the buildings and to ensure the highest rates of reduction of energy consumption by 40-50% or more “- said the Minister.

In order to successfully implement the programs of the Energy Efficiency Fund and resolve inconsistencies in ensuring the energy efficiency of buildings at the legislative level, Ministry of Territories and Communities Development of Ukraine together with the international partners, MPs and experts drafted a bill “On creating conditions for comprehensive thermal modernization of buildings”.

Chloe Alio, Head of the Energy, Transport and Environment Section of the EU Delegation to Ukraine, informed that the Fund played an important role for further promoting energy efficiency reform in Ukraine, became a significant stimulus for implementing of energy efficiency measures in buildings, as well as a tool to save money, reduce CO2 emissions and responding to climate change.

In addition, she stressed the need to finance the work of the Energy Efficiency Fund.

Jorgen Kainhorst, head of the Eastern Europe and Central Asia Cooperation, German Ministry of Environment, Nature Conservation and Nuclear Safety (BMU) emphasized that the thermal modernization of buildings has to remain among the top priorities for the Government of Ukraine in order to have further donors support.

Germany will continue to support the energy efficiency reform in Ukraine, but the Government of Ukraine must ensure the allocation of the required funds to the Energy Efficiency Fund. Given the large number of applications already received and expected, it is extremely important to do it so as soon as possible”, – underlined Jorgen Kainhorst.

Julia Sabatiuk, Head of Supervisory Board of the Energy Efficiency Fund, informed that the management of the Fund continues working actively to simplify the procedures and asked partners to help the Fund to amend existing laws.

The EE Fund is the unique platform in Ukraine that brings together all conscious HOAs. It is a platform that promotes investments in energy efficiency of buildings due to common efforts of the government of Ukraine and international partners supporting our country”, – emphasized Julia Sabatiuk.

Vasyl Lozynskii, First Deputy Minister for Communities and Territories Development of Ukraine, informed that Minregion does not plan to create the alternative programs on energy efficiency for residential buildings and aims to improve the work of the EE Fund.

I would like to assure that we will do our best to ensure the work of the Fund, and to meet our financial obligations in the coming year. Our HOAs need this information to understand if they can prepare the applications”, – said Vasyl Lozynskii.

Mr. Lozynskii reminded that Minregion drafted the bill on the energy efficiency of the buildings. It is under revision now and expected to be approved in November 2021.

Yulia Holovatiuk-Ungureanu, Director of the Energy Efficiency Fund, expressed her gratitude to the international partners for their assistance in the work of the Fund and informed about the challenges and expectations in the activity of the Fund.

The Fund received almost 700 grant applications. In total, the Fund’s Program covered the projects with a total value of UAH 5 billion 481 million. More than 62.4 thousand families have already participated in the Energodim program. The total energy savings in renovated buildings will make about 2.2 million kWh/year”, – informed the Director of the Fund.

Ms. Holovatiuk-Ungureanu represented the launch of the IT-platform that makes the process of receiving the applications automatic and allows to avoid the typical mistakes made by the applicants.   

Yulia Holovatiuk-Ungureanu reminded that the EE Fund continues cooperating with the communities, and more than 100 programs of co-financing of the energy efficiency measures have been approved or adapted for the time being.

In addition, the Fund worked out the concept of the pilot project “Modernization of the cities by Quarters” and plans to present the details to the partners soon.