Ukraine’s economy is one of the least energy efficient, and most emission-intensive, in the world. Consequently, the country is a major contributor to global climate change. To produce a unit of its Gross Domestic Product (GDP), Ukraine emits more anthropogenic greenhouse gases (GHGs) 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 Ukrainian energy security by reducing 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 cities. USAID also helps 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 to implement Low Emission development strategies (EC LEDS).
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. USAID currently cooperates with two Ukrainian banks, Bank Lviv and Procreditbank, to provide $13.5 million in private financing to support end-use energy efficiency and renewable energy investments in Ukraine.
USAID 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.
Additionally, USAID supports the Energy Community framework, which harmonizes regional electricity and gas markets with EU energy markets.
Municipal Energy Reform Project (MERP)
TRAINING AND CAPACITY BUILDING:
- 1,600 municipal professionals trained to manage public energy resources more efficiently.
- 180 journalists trained to cover clean energy issues.
- 2,761 Ministry of Social Policy staff trained in newly developed communal service norms and social subsidy procedures.
SUSTAINIBLE ENERGY ACTION PLANS (SEAP):
- 15 partner cities developed Sustainable Energy Action Plans (SEAPs).
- 8 SEAPs approved by city administrations and city councils.
- 6 investment proposals developed for IFI financing of CE projects (NEFCO, EBRD, WB).
- New DCA initiated with Procredit Bank.
- 40 public outreach or public information events held - direct information exchange and capacity building of for 24,000 people.
- 1,000 billboard and 500 city-light posters placed in MERP partner cities to promote clean energy in multi-apartment buildings and alternative energy resources.
Local Alternative Energy Solutions in Myrhorod
- 10 residential buildings, a school and a kindergarten will receive heating from a 1-megawatt municipal heating boiler reconstructed to use biofuel instead of natural gas.
- 600,000 m3 of natural gas or nearly $100,000 will be saved for Myrgorod local budget annually.
Last updated: June 03, 2016