Energy Efficiency Fund: What Ukrainians will receive money for?

Author : Olha Chaika

Source :

Ukraine is trying to spend as small amount of fuel as possible, and even more – is afraid to lose it in vain. To prevent this, citizens are encouraged to use heat as efficiently as possible
23:14, 25 July 2017

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Before October 22, the Ukrainian parliament must create an Energy Efficiency Fund which will refund the owners of buildings money spent for insulation or air conditioning. This is required by Law No. 2095-VIII, which entered into force on Sunday, July 23.

Reason for creating fund

Ukraine is trying to spend as small amount of fuel as possible, and even more – is afraid to lose it in vain. To prevent this, citizens are encouraged to use heat as efficiently as possible. But for many families, walls insulation or installing appropriate equipment is too expensive thing. So, the state (in the person of the Cabinet and Parliament) decided to help people save not only heat, but also money. Exactly for this purpose a separate legal entity of public law - the Energy Efficiency Fund was created.

The purpose of the fund is to achieve an average level of saving energy consumption by the totality of all projects to which it was applied, at least at 20 percent level. Therefore, the fund will give preference to those projects, equipment and materials which energy efficiency is higher than minimum standards provided by legislation, or higher than the average values available in the market, if such standards are not established.

Reasons for refunding

The owners or co-owners of buildings will be able to apply to the fund to return some of the sums spent on such measures:

    - Thermal modernization
   - Implementation of effective monitoring and management systems
   - Installation of high-efficiency heating and cooling systems and equipment
    - Other measures, including an increase in the share of electricity produced from renewable energy sources.

Energy efficiency measures for the new buildings should be cost-effective and economically feasible.

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Do not worry that you miss something: a full list of programs, conditions for filing applications, etc., will be published on the official website of the fund.

The money that the fund will provide should not need to be returned in any form - it is a grant assistance.

What to expect: The order of considering application by the fund

Before applying to the fund, you need to conduct an energy audit of the building and prepare the relevant documents. Then the owner, the co-owners of the house or their authorized representatives apply.

The institution checks the documents to see if the application meets the programs of the fund, and decides whether to refuse or agree on the size of the grant. If the fund agrees to recover part of the costs, it is reported to the owner of the building. A partner bank may also take part in refunding process if necessary.

After completing all the documents, the building owner can start warming or introduce other activities. When everything is ready, the fund will check whether everything is done as agreed. If all goes well, grant money will be paid.

The law warns: after creation of the fund its managers will be able to prescribe other nuances of the procedure.

Among the principles of the fund is the provision of freedom of choice for the building owners to choose the performer of the work - the energy auditor, the construction company, the energy service company, the partner bank and so on.

Where the fund receives money for building owners’ grants

The Fund can receive financial contributions from the state budget, governments, agencies and institutions of foreign countries, as well as from international financial organizations on the basis of a treaty.

Contribution to the authorized capital can be made in the form of money, any property or property rights, if it is not prohibited by Ukraine’s legislation.

"The fund has no right to issue debt securities, to raise funds on terms of a loan or on other terms, providing fees for the use of funds and the obligation to return money," the law says.

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