You're reading: Ukraine signed 210 energy service contracts in 2018

A total of 210 energy service contracts for the amount of Hr 218 million was signed in Ukraine in 2018, which is 10 times more than two years ago, the State Agency of Energy Efficiency and Energy Saving has written on its Facebook page.

The agency said that last year was the important year in the development of energy services in Ukraine.

According to calculations of the agency, the implementation of energy service projects allows their customers to save from 20 percent to 70 percent of consumed energy.

The rise in energy service activities is linked to the improvement of legislation in 2017. It was permitted to hold one tender for several facilities and the largest term of agreements was increased from 10 to 15 years.

In addition, the energy efficient modernization form of deep energy service partnership was introduced. Under it some energy efficiency events are organized by the customer of the energy service and some events – by the energy service investor. Today nine tenders in five cities – Odesa, Savran (Odesa region), Borodianka (Kyiv region), Nizhyn and Slavutych (Chernihiv region) – were announced.

Structures managing state-owned facilities also started signing energy service contracts. The State Agency of Water Resources signed first four contracts for modernization of pumping stations, which at the first stage would allow saving Hr 300,000 and then over Hr 3 million a year.

The Education and Science Ministry announced 17 energy service tenders (for reconstruction of some universities) and the State Statistics Service announced 11 tenders. Soon 66 more tenders will be announced.

At the expense of energy service investors, the first projects are being implemented in homeowner associations – six agreements have already been signed in Kyiv and Kherson. Thus, this mechanism can be an alternative to energy efficiency loans.

“I am confident that the year 2019 will become an additional springboard for the widespread introduction of energy services and the disclosure of the market for these services with a total capacity of over $8.5 billion,” Chairman of the State Energy Efficiency Agency Serhiy Savchuk said.

To further improve the energy services legislation, the State Energy Efficiency Agency initiated bills No. 9386 and No. 9387, introduced by a group of deputies on December 10, 2018. Their approval will help to attract investment in energy service projects, including foreign ones, and, accordingly, increase the number of energy efficient measures taken in Ukraine.