Ilf and UNDP develop recommendations on implementing energy services in territorial communities

Over the past few years energy services turned from a couple of fancy words into a real necessity for Ukrainians. High energy costs are forcing us to think how to use it more efficiently.

Thus, Ukraine spends 2.5 times more energy than the EU to produce one unit of GDP. This greatly hampers our ability to compete in world markets. That is why raising energy efficiency has become a priority for state policy.

Banks offer energy efficiency loans to individuals and associations of apartment building co-owners. However, existing legislation prevents municipal and state-owned facilities, education institutions and clinics from using many of such loans.

The experience of other countries offers a perfect solution for the Ukrainian dilemma - energy services. Over the past 40 years energy service contracts proved their worth in many leading countries in attracting investment to be used for energy modernization and efficient energy consumption. Energy service is a mechanism of cooperation between those that wish to become energy efficient and those that can make it happen. An energy service company (ESCO) implements energy efficiency procedures at the client’s facility and provides guarantees that lesser energy consumption and/or cheaper cost of it will be achieved. For this, the client pays the ESCO a share of actual savings. Watch a short video on our channel to learn more about energy services.

Armed with the support and funds of UN Development Programme, ILF team consisting of Serhiy Silchenko, Ivan Bondarchuk and Mikhail Bannov developed Methodological recommendations for communities on implementing energy service projects. You can have them sent to your email for free by filling out an application at this link. The Recommendations demonstrate the usefulness of energy service contracts for all parties involved. For clients from among budget institutions, governmental agencies and municipalities this is a chance to modernize buildings, cut down on energy consumption and lower costs without additional investment. By the way, in 2016-2017 20 energy service contracts were signed in Ukraine in the public sector, with 5 of those handled by us. Follow this link to learn, energy efficiency of which facilities is worth investing in.

For ESCOs, energy services open new market opportunities for providing services and energy efficiency equipment. Banks, in their turn, will have their horizons expanded by providing long-term loans for energy efficiency projects.

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