Third Report: Development and Implementation of Energy Performance Contracting in the Municipal Sector of Ukraine

The project focused on the implementation of Energy Performance Contracting (EPC) mechanisms, which involve attracting investments from third parties to achieve energy efficiency or reduced energy consumption. Energy service companies (ESCOs) typically implement such projects. The project aimed to assist cities in preparing for the implementation of energy-saving projects using EPC. In Kyiv, the energy-saving project involved implementing works in buildings of budgetary institutions, while in Hola Prystan', the project entailed replacing street lights with LED ones. The consultants involved in the project developed schemes for project financing under EPC contracts for the cities of Kyiv and Hola Prystan', Kherson oblast. These schemes involved engaging ESCOs, including a municipal ESCO in Kyiv and a private ESCO in Hola Prystan'. The consultants analyzed the proposed schemes of project financing, prepared questionnaires for obtaining information and documentation from potential customers, and evaluated the opportunities for implementing EPC projects in the two cities. The project also involved developing necessary documents for obtaining approval from the Ministry of Finance of Ukraine for the provision of local guarantees. The project's consultants prepared a range of documents, including project proposals, financial plans, and guarantees, for the cities of Kyiv and Hola Prystan'. These documents were designed to facilitate the implementation of EPC projects and ensure the successful execution of energy-saving initiatives. The project's focus on EPC mechanisms and energy efficiency aimed to contribute to the improvement of the Ukrainian economy's energy intensity.