Energy independence

July 02, 2008 at 20:23 | Editorial
As Americans celebrate their independence this week, and Ukrainians recoup after the June 28 commemoration of the adoption of their constitution, both nations would be smart to think about how much their freedom is limited by their dependence on foreign fuel imports.

ited by their dependence on foreign fuel imports.

Both countries have worked hard as allies in recent years seeking ways to reduce Russia’s strong grip on the supply and transport of hydrocarbons in the region. The United States has led the charge, encouraging Ukraine, Georgia, Azerbaijan and Central Asian producers to back new petroleum and natural gas pipelines bypassing Russia. The strategy, justifiable as a short-term solution for a long-term problem, aims to cut energy prices by bringing more competition to the supply of fuels in the region.

Yet Washington and Kyiv are falling drastically short in seeking long-term solutions to their energy woes: reducing dependence on dirty fossil fuels by investing into alternative, so-called greener, energy resources. Not enough effort is being given to bio-energy, wind and solar power, and supporting energy efficiency programs for state-controlled communal heating services, which are shamefully wasteful and on the verge of collapse.

Unlike the U.S., Ukraine has an advantage in this endeavor as it is rebuilding its archaic Soviet energy sector from scratch. It would be wise to put more focus on cleaner power, rather than old fossil fuel technologies. Much of the United States, moreover, lives in spread-out cities and suburbs designed when gasoline was at least four times cheaper than it is today. Most Americans lack viable public transit alternatives. In Ukraine, officials talk of producing more domestic coal and nuclear power as a way to compensate for the rising cost of imports. It would be smarter to put more focus on green power.

The answer is not to entice cleaner energy via special privileges, such as tax incentives, as such loopholes invite abuse. A step in the right direction is for government to hire professional communication companies, possibly with support from big business, to launch widespread informational and educational campaigns.

Ukrainians need to be informed and reminded just how much they could reduce their energy bills by improving insulation of their homes. Villagers and farmers could, with relatively small investments, install windmills and solar power technologies. Big business has made progress in improving the efficiency of factories. If the government privatizes, or leases communal heating service companies, they too will be overhauled faster.