The “Ukraine 2012 Energy Policy Review,” published by the International Energy Agency (IEA), notes that Ukraine could achieve an energy revolution by improving energy efficiencyparticularly in the building, industry and residential sectors, as well as utilizing natural gas deposits.
The report also cautions that improvements in infrastructure and pricing systems will be needed to achieve such a revolution.
18 October 2012: The International Energy Agency (IEA) launched a report titled “Ukraine 2012 Energy Policy Review” in Kiev, Ukraine. The report highlights Ukraine’s potential for an energy revolution and import independence by improving energy efficiency and natural gas usage while recommending improvements to infrastructure and pricing systems.
The report notes that Ukraine has untapped biomass and waste-to-energy opportunities and can reduce its gas consumption by modernizing district heating systems and increasing energy efficiency in its building and industry sectors, including through increased meter use and consumption-reduction incentives. The report calls for Ukraine to upgrade its gas transmission system and diversify supplies via interconnections with Central European markets.
The report describes Ukraine’s efforts to liberalize its electricity and gas markets and recommends that Ukraine offset higher costs from a shift towards market prices by combining support measures with increased energy efficiency investments. Speaking at the launch, Maria van der Hoeven, IEA Executive Director, said “The country must make deep regulatory reforms to foster effective competition, alongside a progressive move towards market prices to attract investment to develop the sector.”
The report features chapters on general energy policy, energy efficiency, district heating, and climate change. The report also includes chapters on oil, natural gas, coal, electricity, nuclear energy, and renewable energy.
It recommends that Ukraine create a lead ministry to transform its 2012 draft energy strategy, which details supply-side measures, into a comprehensive energy strategy that also considers demand-side policies. The report also recommends, inter alia: expanding development and production of indigenous energy sources; modernizing the energy supply chain; ensuring regulatory reform; phasing out subsidies; implementing Energy Community Treaty provisions; and monitoring progress towards targets and international benchmarks. It notes that an energy revolution in Ukraine could enhance energy security, increase economic growth, boost employment and foster sustainable development. [IEA Press Release] [Publication: Ukraine 2012 Energy Policy Review]