Ukraine is well endowed with natural resources, being a haven for heavy industries during the Soviet era. While its industrial base is among the largest in Europe, the inefficiency of the sector is a major drain on the economy. Ukraine has the highest energy intensity/GDP level in Europe. To supply its energy needs, Ukraine imports 80% of natural gas and 90% of oil. Ukraine's five nuclear power plants generated more then 40% of the country's electricity. However, most of Ukraine's electricity is supplied by steam-driven power plants which operate on coal, oil, or natural gas.
The collapse of the Soviet Union brought a dramatic rise in energy costs and reduced demand for Ukraine's products, causing a catastrophic decline in production. Air pollution is especially severe in many industrial centers like Zaporizhzhya, Luhansk, or Donetsk. The Chernobyl nuclear power plant catastrophe of April 1986, which produced an explosion and core meltdown of a reactor in northern Ukraine had an enormous regional and continental impact on the environment. With financial assistance from Western nations, the Chernobyl complex was entirely shut down in December 2000.
The Problem
Almost a quarter of Ukraine's electricity and a third of its heat energy is consumed by the residential sector. Electricity use per capita is 2,305.8kWh. Primarily dependent on natural gas as fuel, district heating is usually used for heating homes in Ukraine. Construction and maintenance standards are poor, draining energy resources in the residential sector, in particular during the long winter months. Energy prices have been increasing annually, placing major pressure on family budgets. Approximately 60% of Ukrainian families receive energy bill subsidies from the Government. Ukrainian municipalities are facing difficulties in adjusting to new costs of energy in schools, hospitals and other public buildings.
The Alliance's Response
The Alliance to Save Energy began its operations in Ukraine in 1997 under a cooperative agreement with the United States Agency for International Development (USAID)/ USAID Mission for Ukraine, Belarus and Moldova to design innovative international energy-efficiency initiatives. The objective of the Ukraine Energy Efficiency Program has been to develop energy efficiency as a means of helping the country manage its rising energy demands in an environmentally sustainable and cost-effective way.
For more information on MUNEE activities in Ukraine consult www.MUNEE.org
or contact Angela Morin Allen
