Head of the State Energy Efficiency Agency of Ukraine (SAEE) Anna Zamazeeva took part in the discussion of the energy performance contracting (ESCO) in the country, the use of its potential for communities’ recovery, as well as the need for financial instruments for ESCO-companies. The discussion was initiated by the UNDP project with the participation of the expert and banking community.

"Energy service is one of those tools that will speed up the recovery of Ukraine: it will help communities to create quality living conditions, modernize buildings - primarily schools, kindergartens, hospitals based on the most modern technologies, save money on paying for energy resources and attract significant investments in regional economy", - emphasized Anna Zamazeeva, opening the discussion.

Since 2015, the SAEE has been directly involved in the introduction of the ESCO mechanism in Ukraine, developing the necessary legislation. Currently, the Agency continues to work on the necessary regulatory acts to improve this area.

"Now we are actively working and during the first days of my work in my new position, we discussed the issue of creating additional programs to reduce the cost of loans and resources that will be provided to our companies to implement programs of public buildings’ reconstruction at the expense of private investments and with the participation of the state", - Anna Zamazeeva reported.

As you know, since the beginning of the ESCO-mechanism in Ukraine, about 600 ESCO-contracts have been implemented for a total amount of more than 1.63 billion UAH. Particularly, in 2022, despite the russian military aggression, more than 40 ESCO-contracts were concluded for a total amount of over 275 million UAH.

Last year, the procedure on creating and updating the list of energy service providers, potential energy service objects developed by the SAEE was adopted. It is approved by the order of the Ministry of Energy as of October 20, 2022 №360.

Currently, the SAEE is forming information bases of ESCO-companies and potential objects. This will speed up the search for both service providers and those buildings that need modernization.

The advantages of ESCO-projects are obvious, because they make it possible to modernize buildings, optimize energy consumption, save money on utility bills and improve living conditions.

"Finances saved thanks to the energy service can be directed to the implementation of other energy efficiency measures or to communities’ development. This should be taken into account, because a large number of enterprises have suspended their activities today, and many of our citizens, who were forced to go abroad because of the war, are planning to return and, accordingly, we must provide them with jobs", explained Anna Zamazeeva.

Therefore, it is necessary to support energy service development.

"Our task is to reduce the financial burden on companies so that ESCO-projects can be fully widespread throughout the country. We have already been working on it and are open to cooperation. I am confident that together with banks we can develop additional tools to cover the potential risks of financing ESCO-projects", the Head of the SAEE said.

During the discussion, experts of the UNDP project presented the prospects for ESCO-market in Ukraine, taking into account the best international practices. Bank representatives shared their vision of lending to ESCO companies.

The participants also discussed potential additional financing tools for ESCO projects and agreed to jointly work out all issues: legislative changes, ways to remove barriers, probable risks, cooperation with communities and others.

Communication and Public Relations Department