The most effective measure to quickly tackle Ukraine’s current energy problems is to reduce its enormous waste of energy – currently, Ukraine is wasting 50 percent of its energy, more than any other economy in the world – and to increase the share of non-centrally produced, “home-grown” renewable energy sources. However, when listening to the official announcements of the Arseniy Yatsenyuk government and reading through its new “Program for Government”, these two vital issues receive very little attention.
In fact, energy efficiency measures are only mentioned twice in the “Program for Government,” a 15-page summary of priorities for the new administration.
The government decided to list on two pages various measures towards new energy independence but it only mentions energy efficiency as the last point, without any concrete deadline. It is very sad to read through this program as it only confirms the goals already set by the administration of former fugitive President Viktor Yanukovych and Prime Minister Mykola Azarov. Also for this reason, we should scrutinize the government’s strategic plans on energy efficiency and renewable energies.
The old aims are to save 9 percent of Ukraine’s energy consumption until 2020 and to increase the share of renewable energies from the current 1 percent to 11 percent until 2020. However, these aims were made at a time of low gas prices and under a government that was under large influence from Russia and energy intensive industries.
We, an expert think tank specialized in energy efficiency and renewable energies, thus think that it is time to reset the old goals. In fact, given that Ukraine probably has one of the largest potentials on energy saving in the world and the measures would directly pay off by smaller gas imports from Russia, we think that much more than 9 percent of energy saving can be achieved until 2020 – and Ukraine would even save money. Furthermore, the current measures to encourage the installation of capacities of renewable energies are most probably not sufficient to achieve even the modest aim of 11 percent by 2020.
Let us hope that at least the new Minister of Energy, Volodymyr Demchyshyn, understands the importance of a more ambitious program to boost energy efficiency and renewable energies. This could be his chance to show that he is not just “one of the old political class” but someone who wishes to move Ukraine forward, towards an energy independent nation.
In order to achieve that, Ukraine needs quick action – and the policy that will work fastest is to increase Ukraine’s energy efficiency. Finding money for such measures will not be a big problem if the government decided to put it as priority – much can be achieved simply by better regulation and acquiring international development aid.
Particularly the European Union, leading in the field of energy efficiency, will be willing to help Ukraine to reduce its waste of energy. Ukraine is not lacking the money for investments in energy efficiency – but it is certainly lacking political will.
We should remind the new government of its ambitions and apply a core phrase of the new “Program for Government” on energy as well: “Only radical solutions and actions can prevent the country from an economic downslide.”
David Bonson-Hesener is policy director at the Institute for Energy Efficiency of Ukraine.
