President signs a law on energy efficiency

President Volodymyr Zelenskyy signed the law "On Energy Efficiency," adopted by Parliament on October 21, 2021.

This was reported by the State Agency for Energy Efficiency and Energy Saving.

The main purpose of the law is to create new framework conditions for promoting energy efficiency in all sectors of the economy.

The law lays the foundation for financing state energy efficiency programs. Thus, the final provisions of the law state:

"to annually provide for the relevant year expenditures on energy efficiency programs in the draft law on the state budget not less than 1% of the expenditure part of the budget;

instructions to the government to develop and approve state target programs of energy modernization of housing stock, enterprises-producers of thermal energy, enterprises of water supply and sewerage."

"Thus, it will help solve the issue of financing state energy efficiency programs. It is unacceptable to deprive consumers of the opportunity to receive support to insulate homes and save on utility bills," the head of the State Agency for Energy Efficiency Valerii Bezus commented.

The State Agency for Energy Efficiency has already developed a draft decision to extend the State Energy Efficiency Program until 2027. The relevant draft resolution has been submitted to the government.

The program provides for an expanded range of measures, namely to support energy efficiency not only of private households but also of centralized heat supply, drinking water, and sewerage systems. This will reduce the use of electricity and heat, as well as the annual loss of drinking water.

The law also removes technical barriers that complicate the conclusion of ESCO agreements and gives a full character to the development of energy services. This mechanism attracts private investment in the modernization of budgetary institutions. The average annual savings on implemented ESCO projects is 35%.

Among the important provisions of the law are also the following:

payment receipts for natural gas distribution services will include information on energy efficiency measures;

Large companies are required to conduct an energy audit every 4 years unless certified energy or environmental management system is in place. This will help optimize energy costs;

public authorities and local governments should purchase equipment with a high energy efficiency class. The use of such equipment will save more money in the future than the purchase of non-energy efficient equipment.