USAID Municipal Energy Reform Project: Ukraine Municipal Energy Reform Project

This will reduce the consumption of conventional energy, decrease greenhouse gas (GHG) emissions, and lower energy expenditures and imports. The project's primary goals include improving energy policies, increasing energy efficiency, and promoting more investment in the energy sector. MERP will contribute to USAID's overall energy projects in Ukraine and support ongoing energy activities in achieving the country's energy sector goals, including integration with the European Union's energy legislation. Additionally, the project will reduce and mitigate GHG emissions resulting from poor energy resource use at the local level. MERP is a four-year project with a budget of USD 13.5 million, implemented by the US company International Resources Group and its international and national partners. The project includes four major activity directions: improving regulatory and legislative enabling environments for energy efficiency and clean energy, promoting energy planning, investments in energy-saving technologies, and use of renewable energy sources, capacity building for government and non-government organizations, and enhancing capacity for the Government of Ukraine in development and introduction of low-emission development strategies. One of the key activity directions is to improve the regulatory and legislative enabling environment for clean energy potential. This involves improving tariff regulation and creating a policy environment that ensures financial sustainability of public and private investments in municipal EE. The MERP team will work with relevant government ministries and agencies, parliamentary committees, and other private and public partners to achieve this goal. The MERP team will also focus on developing an enabling legislative and policy environment, supporting energy efficiency standards, improving tariff setting, and improving social safety net policies. Additionally, the project will contribute to the development of an integrated information system for reporting of utilities and promote the creation of a unified database for all reporting indicators and data. Furthermore, MERP will support the National Communal Services Regulatory Commission (NCSRC) in monitoring and benchmarking the quality of heat services provided by district heating companies. The project will also conduct relevant trainings for specialists of the Ministry of Regional Development, Construction, and Housing and Communal Services and NCSRC to ensure coordination of IFI-financed municipal EE/CE projects by utilities. Another key activity direction is to promote investment in clean energy technologies and applications. MERP will work with partner cities to overcome barriers to municipalities in developing and implementing nonconventional energy/clean energy activities. The project will assist up to 15 selected cities with preparation of strategic energy plans to cover all important energy-consuming sectors and integrate them with Sustainable Energy Action Plans (SEAPs) pursuant to the Covenant of Mayors methodology. Overall, the MERP aims to create a favorable environment for energy efficiency and clean energy development in Ukraine, reduce GHG emissions, and promote sustainable energy practices in the country.