Ukraine’s economy is one of the least energy efficient and most emission-intensive in the world. As a result, the country is a major contributor to global climate change. In order to produce a unit of its Gross Domestic Product (GDP), Ukraine emits more anthropogenic greenhouse gases than almost any other country. Ukraine’s high GHG emissions are related to its energy intensity, which is over three times higher than the European Union (EU) average (International Energy Agency (IEA), 2012). Ukraine’s inefficient energy use impedes economic growth, leaves the economy highly vulnerable to price shifts, draws governmental and private sector resources away from other priority issues, and creates dependence upon foreign energy suppliers.
To enhance Ukraine’s energy security and reduce GHG emissions
USAID’s clean energy program enhances Ukraine’s energy security by reducing the country’s heavy dependence on imported energy resources. USAID supports clean energy reform in Ukraine’s municipal sector, a large consumer of energy resources, by strengthening the legal, regulatory and institutional frameworks necessary to enable clean energy investment in Ukrainian cities. USAID is also helping Ukraine initiate low emission development strategies to reduce Ukraine’s carbon footprint and enable sustainable development.
Municipal Energy Reform Project (MERP)
MERP is a four-year, $13.5 million project with the goal of reducing and mitigating greenhouse gas emissions in Ukraine resulting from the poor use of energy resources, which will lead to strengthened energy security and economic growth. The project will 1) support improvements in the clean energy regulatory and legislative enabling environment; 2) promote investment in clean energy technologies and applications; 3) provide local capacity building training and raise awareness; and 4) enhance the Government of Ukraine’s capacity in Low Emission development strategies (EC LEDS).
Local Alternative Energy Solutions in Myrhorod (LAESM)
The LAESM goal is to develop and test sustainable solutions for increased utilization of locally available alternative energy sources (biomass) in Myrhorod Rayon, Poltava Oblast. This will help identify critical elements for a reliable clean energy infrastructure for local economic development. The results should improve the quality of life for local communities, while renewable energy will replace imported natural gas, and CO2 emissions and energy bills will decrease.
Other Energy Programs
USAID’s energy efforts also include a Development Credit Authority (DCA) component designed to promote end-use energy efficiency and renewable energy investments through credit guarantees to Ukrainian banks. The first guarantee is in partnership with Bank Lviv to provide $10 million in private financing to support end-use energy efficiency and renewable energy investments in Ukraine over the next 7 years.
USAID/Washington’s Bureau for Europe and Eurasia (E&E) also supports energy efficiency in Ukraine through annual contributions of $1.5 million to the Eastern European Energy Efficiency and Environmental Partnership (E5P) fund, a multi-donor fund managed by the European Bank for Reconstruction and Development, designed to promote energy efficiency investments in Ukraine and other eastern European countries.
E&E also provides support to Ukraine under the Energy Community framework, which is aimed at the development of harmonized regional electricity and gas markets that are fully integrated with the EU internal energy market.
- USAID launched the Municipal Energy Reform Project (MERP) in October 2013. In April 2014, MERP launched partnerships with 17 Ukrainian municipalities. MERP builds off of the earlier Municipal Heating Reform Project, which leveraged $225 million for energy efficiency projects and led to the savings of 380 million cubic meters of natural gas.
- Through the Partnership for a Cleaner Energy Project, which closed in 2014, USAID helped implement 22 demonstration projects combining alternative energy and energy efficiency measures n Dnipropetrovsk Oblast. These projects leveraged more than $600,000 from public and private sources, proving the efficiency of public-private partnership models tested within the project. These demonstration projects are expected to reduce annual CO2 emissions by at least 250 tons in the Dnipropetrovsk Oblast from improved energy efficiency and new renewable energy sources.
- USAID has conducted a comprehensive assessment of legislation, policies and regulations governing the use of alternative sources of energy.
Last updated: August 26, 2014