General Information
Program Description
The goal of the Program is to increase the level of energy efficiency of residential and public buildings by increasing the number of projects for thermal modernization of residential and public buildings (increasing the pace of thermal modernization), increasing the number of buildings with close to zero energy consumption, which will contribute to reducing the country's dependence on imported natural gas, in particular of Russian origin, and strengthening Ukraine's energy independence.
Strategic Case
Program Goal
Strategic Relevance of the Program
Program Objectives
Stimulating energy efficiency in the residential sector (number of buildings with energy efficiency measures or measures to install RES)
0 units
215240 units
Ensuring an exemplary role of public authorities in increasing the level of energy efficiency of buildings (number of buildings in which energy efficiency measures or measures to install RES have been implemented)
0 units
55 units
Raising public awareness about energy efficiency in buildings
0 mln people
20 mln people
Implementation of energy management systems (number of implemented energy management systems)
0 units
1150 units
Ensuring proper collection and analysis of data on energy and operational characteristics of buildings (number of installed commercial metering nodes)
0 units
500 units
Creation of a favorable market environment for thermal modernization of buildings (number of business entities (small and medium-sized enterprises) that have started (expanded) economic activities in the field of thermal modernization, production of energy-efficient equipment with state support)
0 units
160 units
Stimulating local governments to increase the level of energy efficiency of buildings (number of buildings in which energy efficiency measures or measures to install RES have been implemented)
0 units
6312 units
Programme Sustainable Development Goals
Economic Case
Economic feasibility of the program
What are the main benefits expected from the implementation of the program for the economy, business, society, or individual industries?
Does the program objective provide for a contribution to the climate goal of mitigating the effects of climate change?
Does the program objective provide a contribution to the climate change adaptation objective: reducing the impact and/or reducing the vulnerability of an asset or population to one or more types of physical climate hazards?
Does the programme objective provide for a contribution to the climate objective of sustainable use and protection of water and marine resources?
Does the program objective provide for a contribution to the climate goal of transitioning to a circular economy?
Does the programme objective provide for a contribution to the climate objective of pollution prevention and control?
Does the program objective provide for a contribution to the climate goal of protecting and restoring biodiversity and ecosystems?
What social consequences are relevant for your program, after its implementation?
Why is it advisable to implement projects in the format of one comprehensive program, and not separately?
How will the program help strengthen other economic processes or reforms?
Program Components
Component ID
DREAM-5
Ensuring proper collection and analysis of data on energy and operational characteristics of buildings
Justification
1) ensuring the conduct of analytical studies (surveys) of the national fund of residential buildings and public buildings 2) ensuring the creation and functioning of the National Database of Energy and Operational Characteristics of Buildings 3) ensuring the installation of commercial metering units for heat energy supply and hot water supply in state-owned buildings
Year
Amount
1
6'500'000 UAH
2
6'200'000 UAH
3
7'800'000 UAH
4
7'800'000 UAH
5
7'800'000 UAH
Component ID
DREAM-2
Ensuring an exemplary role for public authorities in increasing the level of energy efficiency of buildings
Justification
1) ensuring the certification of energy efficiency of government buildings (including during energy audits) 2) implementing priority energy efficiency measures or implementing projects for thermal modernization of government buildings (including using renewable energy sources, preparing design documentation in cases provided for by law) 3) ensuring the construction (including reconstruction of buildings damaged as a result of military operations) of government buildings in compliance with the requirements for buildings with close to zero energy consumption 4) ensuring the installation of heat pumps by government bodies 5) ensuring the installation of solar power plants by government bodies 6) ensuring the installation of mechanical ventilation systems with heat recovery in government buildings 7) encouraging government bodies to increase the energy efficiency of indoor lighting systems for office premises, public areas and adjacent areas of government-owned buildings
Year
Amount
1
65'700'000 UAH
2
65'700'000 UAH
3
66'700'000 UAH
4
66'700'000 UAH
5
68'700'000 UAH
Component ID
DREAM-6
. Creating a favorable market environment for thermal modernization of buildings
Justification
1) promoting the development of micro-enterprises, small and medium-sized enterprises that conduct or plan to conduct economic activities in the field of thermal modernization of buildings, in particular by providing partial state guarantees and reimbursement of part of the interest on loans attracted by them for the implementation of thermal modernization of buildings 2) promoting the development of the production of energy-efficient equipment (heat pumps, air recuperators, automatic control devices, etc.) and energy-saving construction products (thermal insulation systems, high-performance window structures, etc.) in Ukraine
Year
Amount
1
0 UAH
2
10'000'000 UAH
3
10'000'000 UAH
4
10'000'000 UAH
5
10'000'000 UAH
Component ID
DREAM-7
Raising public awareness about energy efficiency in buildings
Justification
1) ensuring public awareness and popularization of the benefits of thermal modernization of buildings, state support programs for thermal modernization of buildings in the media by providing funding for relevant information projects 2) ensuring the development and implementation of systematic educational activities aimed at citizens of different ages and target groups, with the aim of fostering a conscious attitude and motivation to increase energy and resource efficiency, forming energy-saving behavior skills, etc.
Year
Amount
1
0 UAH
2
3'400'000 UAH
3
3'400'000 UAH
4
3'400'000 UAH
5
3'400'000 UAH
Component ID
DREAM-3
Encouraging local governments to increase the energy efficiency of buildings
Justification
1) encouraging local governments to carry out energy efficiency certification of municipally owned buildings (including as part of an energy audit) 2) encouraging local governments to carry out comprehensive thermal modernization (including using renewable energy sources, preparing design documentation in cases provided for by law) of municipally owned buildings 3) encouraging local governments to build (including rebuilding damaged as a result of military operations) public municipally owned buildings in compliance with the requirements for buildings with close to zero energy consumption 4) encouraging local governments to install heat pumps in public municipally owned buildings 5) encouraging local governments to install solar power plants in public municipally owned buildings 6) encouraging local governments to install mechanical ventilation systems with heat recovery in public municipally owned buildings 7) encouraging local governments to increase energy efficiency of indoor lighting systems for office spaces, public areas and adjacent areas of municipally owned buildings
Year
Amount
1
3'552'000'000 UAH
2
7'127'400'000 UAH
3
7'129'400'000 UAH
4
7'129'400'000 UAH
5
7'129'400'000 UAH
Component ID
DREAM-1
Stimulating energy efficiency in the residential sector
Justification
1) encouraging citizens to improve the energy efficiency of individual residential buildings (including using renewable energy sources) depending on the achieved level of energy efficiency 2) providing support to citizens who are owners of individual (manor) houses destroyed as a result of military operations to build residential buildings with a close to zero level of energy consumption 3) encouraging citizens to improve the energy efficiency of multi-apartment residential buildings (including using renewable energy sources) depending on the achieved level of energy efficiency 4) encouraging citizens to reconstruct (modernize) or overhaul heating and hot water supply systems in multi-apartment buildings connected to the centralized heating system 5) encouraging citizens to install heat pumps in multi-apartment and individual residential buildings 6) encouraging citizens to install solar power plants in multi-apartment and individual residential buildings 7) encouraging citizens to install mechanical ventilation systems with heat recovery in multi-apartment and individual residential buildings 8) encouraging citizens to increase the energy efficiency of indoor lighting systems in apartments, common areas and adjacent areas of multi-apartment residential buildings 9) encouraging citizens to increase the energy efficiency of indoor lighting systems and adjacent areas of individual (manor) houses
Year
Amount
1
5'949'000'000 UAH
2
7'054'340'000 UAH
3
26'617'860'000 UAH
4
52'885'700'000 UAH
5
79'145'000'000 UAH
Component ID
DREAM-4
Implementation of energy management systems
Justification
1) ensuring the implementation of energy management systems by state authorities, enterprises, institutions and organizations within their sphere of management 2) ensuring the certification of energy management systems of state authorities, enterprises, institutions and organizations within their sphere of management 3) encouraging local governments to implement energy management systems 4) ensuring the certification of energy management systems of local governments 5) encouraging local governments to engage in long-term local energy planning
Year
Amount
1
191'300'000 UAH
2
191'300'000 UAH
3
191'300'000 UAH
4
191'300'000 UAH
5
191'300'000 UAH
Financial justification
Total estimated program cost
205'099'200'000 UAH
Estimated cost of program components
205'099'200'000 UAH
Component
Amount
Ensuring proper collection and analysis of data on energy and operational characteristics of buildings
36'100'000 UAH
Ensuring an exemplary role for public authorities in increasing the level of energy efficiency of buildings
333'500'000 UAH
. Creating a favorable market environment for thermal modernization of buildings
40'000'000 UAH
Raising public awareness about energy efficiency in buildings
13'600'000 UAH
Encouraging local governments to increase the energy efficiency of buildings
32'067'600'000 UAH
Stimulating energy efficiency in the residential sector
171'651'900'000 UAH
Implementation of energy management systems
956'500'000 UAH
Sources and mechanisms of financial support for the implementation of programs.
Status
Funding mechanisms
Coverage, %
Investment
Non-repayable financing. Grant financing. International (intergovernmental) grant agreement (with a predefined approach for selecting contractors or suppliers).
21%
Non-repayable financing. Direct budget financing. Funded from the general fund of the state budget.
29%
Reimbursable financing. Debt financing. Loans borrowed by the state from foreign governments, foreign financial institutions, and IFIs
50%
Justification document
What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)
Financing is provided under a mixed model, combining: The state budget - to ensure co-financing of priority activities and support for communities, households and state authorities with limited financial resources. Local budgets - to co-finance projects within territorial communities and implement additional activities. Other sources - funds from international financial organizations and donors, grant resources, loans, as well as the own contribution of beneficiaries (OSMB, local governments, enterprises). This approach allows optimizing the budget burden, attracting external resources and ensuring sustainability of financing throughout the entire period of the Program implementation.
Management Case
Total program duration (months): 5
Approaches to project selection
Have approaches and criteria been defined for including public investment projects in the program, initiators of such projects, and their prioritization?
Organizational Measures
The five-year implementation period allows for phased implementation of measures, proper project preparation, stable financing and monitoring of results. Such a planning horizon allows for the synchronization of the Program with national strategies in the field of energy efficiency and renovation, as well as with Ukraine's international obligations.
60 months
Risk Assessment
Risk
Probability
Degree
Strategy
Risk
low awareness or interest of residents and local governments, which may slow down the implementation of projects
Probability
Low
Degree
Considerable
Strategy
Transfer
Risk
absence or shortage of contractors with appropriate qualifications, use of poor-quality materials or technologies, which may affect the effectiveness of the measures
Probability
Medium
Degree
Critical
Strategy
Reduction
Risk
possible delays or reductions in funding from state and local budgets, as well as risks of insufficient attraction of external resources
Probability
Medium
Degree
Critical
Strategy
Reduction
Risk
delays in work execution due to logistical problems, difficult weather conditions or administrative procedures
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
inflation and rising prices for construction materials and equipment, which may increase the total cost of implementing the Program
Probability
High
Degree
Critical
Strategy
Acceptance