ENERGY SECURITY

A young enthusiast displays a model of wind turbine he assembled at an Energy Efficiency Lab during a USAID City Day in Sumy.
A young enthusiast displays a model of wind turbine he assembled at an Energy Efficiency Lab during a USAID City Day in Sumy.

THE CHALLENGE:

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 greenhouse gases (GHG) 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 average. 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.

PROGRAM OBJECTIVE:

To enhance Ukraine’s energy security and reduce GHG emissions.

OVERVIEW:

USAID’s energy security program helps Ukraine improve the legal and regulatory environment and increase energy supply resilience. Currently USAID supports 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 also helps Ukraine initiate low emission development strategies to reduce Ukraine’s carbon footprint and enable sustainable development. In addition, USAID is supporting the establishment of competitive energy markets in electricity, natural gas, and district heating sectors and increasing renewable and indigenous energy supplies.

ONGOING PROGRAMS:

Municipal Energy Reform Project

The project goal is to reduce and mitigate greenhouse gas emissions in Ukraine resulting from the poor use of energy resources, which will lead to strengthened energy security and economic growth. 

Energy Sector Anticorruption & Fiscal Transparency Initiative In Ukraine (Transparent Energy)

The Energy Sector Anticorruption and Fiscal Transparency Initiative in Ukraine (Transparent Energy) is helping to combat corruption and improve fiscal transparency in Ukraine’s energy sector by instituting changes in the way the energy sector discloses, analyzes, and makes public information, which is now either hidden or restricted from public view.

Development Credit Authority (DCA) Loan Portfolio Guarantee Program

USAID’s energy efforts also include a DCA component designed to promote end-use energy efficiency and renewable energy investments through credit guarantees to Ukrainian banks.

Ukraine Energy Regulatory Support

This is a partnership program between the National Energy and Utilities Regulatory Commission (NEURC) and NARUC that seeks to enhance the ability of NEURC to effectively regulate the electricity and natural gas sectors in Ukraine.

Ukraine Gas Transmission System Operator (TSO) Support to the Energy Ministry

The project assists the Ministry of Energy and Coal Industries and the newly established gas TSO, a main gas pipeline of Ukraine. 

PROGRAM HIGHLIGHTS:

LEGISLATIVE/REGULATORY

  • National Action Plan on Renewable Energy, National Action Plan on Energy Efficiency adopted and under implementation;
  • Laws on Home Owners Associations, on Information Disclosure for Tariffs, ESCO, on National Energy and Utility Regulatory Commission adopted along with a number of  regulatory acts;
  • 8 decrees for district heating and district water sectors adopted by the NEURC;
  • 7.5 million people obtained social subsidies during the  2016-2017 heating season to adapt to increased utility tariffs;
  • “2nd EITI published and presented to the public. The report provides comprehensive information on extractive sectors of the country.

TRAINING AND CAPACITY BUILDING

  • Over 750 people, mostly staff of NEURC and regulated utilities, trained on regulatory issues, 3,088 Ministry of Social Policy staff (including regional offices) trained, and 3,521 municipal professionals trained on efficient use of energy resources and municipal energy management,
  • 470 journalists trained on clean energy issues, and 1,875 municipal energy professionals trained;
  • Inaugural meeting of the Utility Cyber Security Initiative was held in Kyiv. 36 cyber security specialists from 13 transmission system and distribution system network operators and Ministries in Armenia, Georgia, Moldova and Ukraine participated in the Working Group meeting.

SUSTAINIBLE ENERGY ACTION PLANS (SEAP)

  • 25 Ukrainian cities involved in comprehensive Sustainable Energy Action Planning (SEAP), 17 of these cities approved SEAPs, and 12 cities started SEAP implementation.

INVESTMENTS

  • $60M - invested under SEAPs, $16M - new projects signed, none invested yet, $73M - post-signing support;
  • $200 million investment leveraged for potential projects;
  • DCA with Bank Lviv utilization rate reached 38%.

INFORMATION CAMPAIGNS

  • 254 public outreach or public information events held;
  • 3,380 billboards and 1,700 city-light posters placed in MERP partner cities to promote clean energy in multi-apartment buildings and alternative energy resources;
  • MERP outreach products, such as “Your Home” TV Program, video PSAs, billboards, brochures and posters reached an audience of over 20 million through over 100 TV channels, variety of internet resources, multiple outdoor ads and printed materials.

EC-LEDS

  • National GHG inventory system enhancement planned, developed and implemented;
  • National GHG inventory report for 1990-2014 submitted by the Ministry of Ecology and Natural Resources to UNFCCC;
  • Draft sectoral low emission policy catalog developed (Paris Agreement implementation).

Last updated: November 14, 2017

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