Energy Efficiency in the Residential Sector in the Ukraine: Achieving the Potential

Abstract: Ensuring energy security, eradicating energy poverty, and reducing GHG emissions from the energy sector are some of the key reasons why energy efficiency will be addressed in the Ukraine. The residential sector, being among the major energy consumers in the national economy, has a large energy saving potential. Multi-storey residential buildings currently require general refurbishment, and this fact opens a window of opportunity for the implementation of energy saving measures in a cost-efficient way. This research estimates the potential energy savings from the introduction of first-priority technical measures in the Ukrainian multi-storey residential stock, and discusses the policy instruments that have to be used in order for such measures to be realized. The key finding of the study is that a major share of the existing energy saving potential of the Ukrainian residential sector can be realised via simple and first-priority technical energy saving measures, i.e. wall insulation and additional insulation of the thermal envelope, window exchange, heating metering, hot water metering, and installation of temperature regulators. The major barriers to the implementation of energy saving measures in the Ukrainian residential stock are subsidized energy prices, citizens’ energy intensive lifestyles, lack of financial capital for the introduction of energy saving measures, misplaced incentives, lack of investors’ interest in energy saving projects, lack of awareness about energy saving options amongst average dwellers and construction specialists, as well as a high rate of corruption at all levels of governance. Potential policy instruments for the Ukrainian context were identified as follows: increased energy performance standards for buildings, compulsory energy audits and labelling of buildings, compulsory installation of heating and hot water meters, increase of energy tariffs for residential users, creation of revolving funds, educational campaigns, and the promotion of ESCOs.