“Citizens of Ukraine have a new source of funding to boost the energy efficiency of their homes”, Minister of Finance Natalie Jaresko

Ukrainian citizens have a new source of funding to improve the energy efficiency of their homes and thus to reduce energy consumption, which should facilitate the reform of the energy sector for the sake of the energy security of our country. This statement was made by Minister of Finance Natalie Jaresko during the presentation of the new EBRD program for the energy-efficient modernization of homes «IQ energy» on April 7. The presentation was also attended by representatives of the EU, East European Partnership for Energy Efficiency and Environment (E5P) as well as the Swedish Agency for International Development and Cooperation (Sida).

The Government of Ukraine is actively supporting energy-efficiency measures. It is also supporting the reduction of energy consumption by citizens which is one of the areas of the energy sector reform aimed to ensure its transparency, to create incentives for investments in this sector as well as to ensure the energy security of Ukraine. In line with this policy, the Ministry of Finance is cooperating with the international partners of Ukraine to obtain long-term funding for this area. An important step on this way is the new EBRD program for the energy-efficient modernization of homes «IQ energy» aimed to help Ukrainian citizens consume energy for household purposes more rationally.

Within two years, the Government managed to reduce the deficit of Naftogaz of Ukraine from approx. $10 billion in 2014 to the expected zero in 2016. At the same time, the transparency and quality of the corporate management at Naftogaz was improved. Also, citizens who need support from the Government received direct subsidies amounting 35 billion hryvnas to compensate the increased energy prices. The law on the gas market adopted by the Parliament shall contribute to more competition on this market which should help reduce gas prices for consumers. To attract investments in the energy sector, the Government is liquidating the monopoly of Naftogaz for transport and storage of gas.

Under the above program the EBRD will provide €75 million to three Ukrainian banks (Megabank, UkrSibbank and OTP Bank) which will then provide long-term loans to citizens and unions of residential property owners for a number of measures aimed to increase energy efficiency including insulation of homes, installation of modern energy-efficient windows and gas boilers, modernization of heating systems and installation of solar heating systems. Debtors who will comply with the program’s criteria will have 15% to 35% of their investments into energy-saving technologies and materials refunded.

“We are profoundly grateful to the EBRD for their next important step in supporting the energy independence of Ukraine; we ask all our citizens to actively use the opportunity provided by our partners to reduce energy consumption in their homes”, Minister of Finance Natalie Jaresko said.