Energy conservation policy in Ukraine

Panel: Panel 1. Energy efficiency – a strategic choice for Europe

Authors:
V. A. Zhovtyansky, State Committee of Ukraine for Energy Conservation
E. P. Kolesnikova, Kyiv Polytechnic Institute

Abstract

Ukraine is rather a big state with territory of 603 700 km2 and population of 48,4 million. Here in the Carpathians the centre of Europe is located. Ukraine was one of the most industrially developed republics of the former USSR. Availability of cheap energy resources at Ukrainian territory (gas, oil, coal) and mines of mineral resources (uranium, iron, bauxite and others) fostered the process.

In 1990 Ukrainian production of ferrous metals rolling was 45,4 million tons, in 2001 after crisis in economics – 29,3 million tons. At the beginning of the 90s main natural resources of oil and gas have been depleted, while the price of import of the fuel (mostly from Russia) has grown. In result fuel-energy component of the industrial product price grew in 1990-96 3 folds. It has initiated the crisis in the economics. In result the energy intensity of the Gross Domestic Product (GDP) additionally has grown by 40% and 3-5 folds exceeded indexes of the developed countries. The main causes were: unsatisfactory structure of economics branches, certain technological lagging, shadow economics influence. Under this situation in 1994 Ukraine has adopted the “Law on Energy Conservation”, which envisaged institutional, regulative and motivating measures on energy conservation. In result of the approaches used, the GDP index has been stabilized through 1996-1999 and since 2000 its notable reducing has started.

To improve the situation in the sphere of energy conservation in Ukraine the measures on energy standardisation and popularisation, training of energy conservation specialists, energy conservation measures in budget sphere are carried out.

At present the main direction of energy conservation activity in Ukraine is the development of economical stimulation mechanisms and outreach on energy conservation.