Industrious Ukraine

This month, the Alliance International Team, in collaboration with International Resources Group (IRG), finished one of its largest international programs: the Ukraine Industrial Energy Efficiency Initiative. The program produced 14 essential feasibility study reports based on the outcomes of energy audits performed by Ukrainian energy service companies (ESCO) at the industrial plants. One of the projects – the replacement of a natural gas-fired boiler at a building materials plant by a new boiler that uses wood waste fuel – has already been accepted for financing by the Export-Import Bank of Ukraine.

Why are these 14 projects so significant? First, energy efficiency in Ukraine is a national priority, considering the nation’s heavy reliance on Russia for natural gas. All proposed projects would reduce natural gas consumption or in some cases completely eliminate dependency on natural gas, thereby increasing energy security nationwide.

Second, pairing these large-scale investments – a total of over $70 million for 14 projects – with the international standard quality of Alliance- and IRG-authored bankable project reports is a way to highlight energy efficiency projects as worthy investments for banks, and thus facilitate future financing.

Third, the Ukraine project fostered partnerships for future projects. A Trade Mission organized by the Alliance introduced U.S., Canadian, and European ESCOs and energy efficient equipment manufacturers to Ukrainian industrial enterprises, banks, and ESCOs. Already, four partnerships and two confirmed joint ventures have been formed from this meeting; the latter have received grant funding from USAID for organizing their operation in the Ukraine and implementing two energy efficiency initiatives.