The new Law “On Energy Efficiency,” which came into force on November 13, 2021, introduces updated regulations for implementing energy-saving technologies in the business sector.
Thanks to this law, Ukraine has completely moved away from outdated administrative tools for energy conservation and is transitioning to modern European practices in energy efficiency policy implementation. Current efforts focus on:
- Implementing energy audits and energy management systems;
- Establishing a national energy efficiency monitoring system;
- Developing energy service markets;
- Enhancing local energy planning;
- Ensuring sustainable improvements in final energy consumption efficiency with a target annual reduction indicator;
- Developing state-targeted programs to support energy efficiency across various sectors, among others.
Preliminary estimates show energy savings achievable through energy management implementation without additional investments:
- 5 to 8% savings in energy resources due to energy-efficient consumer behavior;
- Up to 20% reduction in energy consumption through optimized energy-efficient operation of facilities.
The law also introduces a large-scale state-level smart grid technology deployment program. This will enable distribution system operators to reduce costs within electric networks while allowing consumers to manage their own demand. Based on economic feasibility and technical capability, intelligent metering systems for gas, electricity, and heat will be installed.
Ukraine has also established some of the most favorable conditions among Energy Community countries to attract private investments via the Energy Service Company (ESCO) mechanism. Under this mechanism, an energy service company modernizes buildings and recoups costs from the resulting energy savings. Support is being provided to engage independent market intermediaries (banks and other financial institutions) that will incentivize consumers and energy service providers to conclude energy service contracts.
Ukraine is adopting European best practices for constructing nearly zero-energy buildings (NZEB). The Concept and National Plan for the phased increase in NZEB construction have been adopted. According to the plan, the necessary regulatory framework will be developed within the next five years, followed by a transition to new construction requirements and building commissioning after 2025.
