Enhancing Energy Efficiency in Ukraine’s Residential Sector Amid Crisis

Russia’s full-scale invasion of Ukraine in February 2022 has left a lasting impact on the country’s residential sector, with economic damages exceeding EUR 54 billion. Ongoing assaults on energy infrastructure have deepened the crisis, intensifying energy shortages and underscoring the urgent need for energy-saving solutions. One key response is to prioritize energy-efficient construction and retrofitting measures.

Ukraine’s residential housing stock was already in need of substantial energy efficiency upgrades before the war. With many buildings aging and inefficient, and low energy tariffs discouraging investment, Ukraine’s energy consumption in the residential sector is 30-50% higher than the European average. Compounding this is the high rate of owner-occupancy and the poor upkeep of multi-family houses, which further hinders energy-saving efforts.

Our latest policy paper dives into the challenges and opportunities for improving energy efficiency in Ukraine’s housing sector. We explore financial instruments that could bridge the significant investment gaps in this area. Key recommendations include broadening eligibility for existing programs like the Energy Efficiency Fund to cover more housing types, as well as introducing innovative tools such as green mortgages and energy service companies (ESCOs). These strategies aim to modernize Ukraine’s residential sector, contributing to long-term energy security and aligning the country with EU climate goals.

By investing in energy efficiency now, Ukraine can build a more resilient and sustainable future, even in the face of ongoing challenges.

Author(s):
Henriette Weser, Dinara Saparova, Pavel Bilek, Rouven Stubbe

What is a Policy Paper?

Policy Papers refer to current or possible future policy topics. An in-depth economic analysis of the selected topic is presented, from which policy recommendations and possible actions are derived.