President signed a law on energy efficiency: what it provides

President of Ukraine Volodymyr Zelenskyy signed the law “On Energy Efficiency”, adopted by Parliament on October 21, 2021.

This was reported by the State Agency on Energy Efficiency and Energy Saving, UA writes.

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

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

– instructions of 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.

According to the head of the agency Valeriy Bezus, this will help resolve the issue of financing state energy efficiency programs.

“After all, it is unacceptable to deprive consumers of the opportunity to receive support to insulate homes and save on utility bills” – Bezus commented.

The law also removes technical obstacles that complicate the procedure for concluding ESCO contracts and makes the development of energy services full-fledged. 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 the following:

• receipts for payment for natural gas distribution services will contain in particular information on energy efficiency measures;
• large companies are required to conduct an energy audit every 4 years, unless a 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.

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