The energy intensity of Ukraine’s GDP is one of the highest in the world – 2.7 times that of Poland and 3.3 times that of Germany

However, due to the low energy efficiency of the economy, Ukraine’s direct annual losses amount to more than USD 1 bln.

This was stated by the CEO of UkraineInvest during his speech at the Investors Annual Meeting, an investment forum organised by UkraineInvest in partnership with the Ukrainian CCI and supported by OKKO and Onur Group.

Sergiy Tsivkach presented analytical research on the prospects for energy efficiency in Ukraine, potential energy efficiency projects and equipment needs for reconstruction.

According to the study, the total energy efficiency potential is 7.6 bln USD. Of this amount

– 30% industry – USD 2.7 bln
– 5-10% public transport – USD 0.8 bln
– 50-60% residential – USD 2.5 bln
– 1.6 bln USD Heating
– 136 mln USD water and sanitation

“Investment in energy-efficient technologies stimulates innovation and job creation in key sectors. Increased efficiency reduces dependence on costly imports and protects against price volatility and geopolitical risks. Infrastructure upgrades reduce energy consumption, freeing up funds for other public needs. Ukraine is developing and improving the energy services sector as a tool to attract private investment in energy efficiency projects. The basic idea is that investments in energy efficiency pay for themselves through energy savings. The company invests in energy-saving measures at the customer’s site, and the savings from reduced energy consumption are used to cover the investment and generate a profit,” says Sergiy Tsivkach.

Among the potential energy efficiency projects, Sergiy Tsivkach mentioned 
– cellulose wool insulation plants (Ukraine’s residential sector needs to produce 1.5 million tonnes of cellulose fibre insulation to improve energy efficiency)
– wood wool insulation plants (Ukraine’s residential sector needs 1.8 million tonnes of wood fibre insulation to improve energy efficiency)
– glass wool insulation plants (a glass wool insulation plant with a capacity of 1 million tonnes is needed to improve the energy efficiency of Ukrainian buildings).

He also spoke about the investment incentives available and outlined the requirements for eligible projects.

The purpose of the event was to improve business-government dialogue, organise analytical discussions on the implementation of industrial investment projects, present a report on the prospects and mechanisms for creating new investment funds, and reward investors who have started and will implement projects after 24 February 2022.

Participants discussed the needs of business and the state in terms of industrial, energy-efficient equipment and materials, economic transformation, and factors of Ukraine’s investment attractiveness.

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