Energy efficiency in communities


Sector

Municipal infrastructure and services

Stream

Improving energy efficiency in public buildings

Entry into Portfolio

Included in the State Single Project Pipeline

General Information

Program Description

Ukraine is actively implementing programs to encourage local governments to increase energy efficiency in public buildings that belong to the municipal property of the relevant territorial communities of Ukraine.

Stimulating the reduction of energy consumption, reducing local budget expenditures on the maintenance of real estate belonging to the relevant community, improving the operational and aesthetic characteristics of these buildings, creating comfortable conditions for visitors to such public buildings, and reducing the negative impact on the environment.

Strategic Case

Program Goal

Main Goal: Implementation of innovations and energy-efficient solutions
Secondary goal: Contribution to climate or environmental goals, Improvement of infrastructure condition, Improvement of service quality
Problems: Unbalanced domestic energy consumption is an acute problem that has sharply negative economic and social consequences and limits the potential for improving the standard of living of Ukrainian cities. Municipal institutions are first in line for the implementation of energy efficiency projects, since the municipal sector has a huge energy saving potential. Potentially, municipal institutions could save up to 60% of their current energy consumption. Once revealed, this potential will affect not only the implementation of technical energy-saving measures, but also the implementation of comprehensive organizational, educational and explanatory measures aimed at changing the culture of energy consumption

Strategic Relevance of the Program

Sector
Municipal infrastructure and services
Subsector
Urban planning and landscaping
Stream
Improving energy efficiency in public buildings
Strategic Document
Long-term Strategy for Building Thermal Modernization until 2050
Task
Стратегічна ціль 6 до ОПЕРАЦІЙНОГО ПЛАНУ заходів з реалізації у 2024—2026 роках Довгострокової стратегії термомодернізації будівель на період до 2050 року Improving energy efficiency in public buildings

Program Objectives

Indicator
Baseline Value
Target Value

Reduction of CO2 emissions

0 %

25 %

Reducing building maintenance costs

0 %

25 %

Economic Case

Program Components

Financial justification

Total estimated program cost

1'222'898 UAH

Estimated cost of program components

1'222'898 UAH

Component

Amount, uah

thermal modernization of public buildings

1'222'898

Cost justification

Short description

Justification document

Untitled

Sources and mechanisms of financial support for the implementation of programs.

Status
Funding mechanisms
Coverage, %

Investment

Non-repayable financing. Grant financing from existing international support projects, international technical assistance programs, and grants. Direct expenditures.

4%

Reimbursable financing. Debt financing. Loans borrowed by the state from foreign governments, foreign financial institutions, and IFIs

96%

Justification document
financial justification KFW.docx
What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)

Law of Ukraine "On Ratification of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany on Financial Cooperation (Appropriations for 2012-2019)" dated June 15, 2021 No. 1552-IX; Order of the Cabinet of Ministers of Ukraine dated November 24, 2021 No. 1484-r "On Attracting a Loan and Grant from the Credit Institution for Reconstruction ("KfW") for the Implementation of the Project "Energy Efficiency in Communities" Loan and Grant Agreement between the Cabinet of Ministers of Ukraine, Zhytomyr City Council, Zaporizhzhia City Council and KfW, Frankfurt am Main ("KfW") (Project "Energy Efficiency in Communities"), which entered into force from the moment of its signing on 11/30/2021.

Management Case

Organizational Measures

Implementation of the program "Energy Efficiency in Communities"

24 months

Risk Assessment

Risk

Probability

Degree

Strategy

Risk

rising cost of building materials

Probability

Medium

Degree

Considerable

Strategy

Acceptance

Risk

insufficient qualifications for local government

Probability

Low

Degree

Considerable

Strategy

Avoidance

Risk

risk of lack of qualified personnel

Probability

Medium

Degree

Considerable

Strategy

Reduction