Enigin Update - Ukraine to get $200 Million for Energy Efficiency Projects
THE World Bank’s Board of Directors today approved a $200 million loan for Ukraine to finance energy efficiency projects in industry, municipalities and municipally owned enterprises and energy service companies.
The "Project on Energy Efficiency in Ukraine" will contribute to helping the country achieve its ambitious targets to reduce energy intensity by 20 percent by 2015 and by 50 percent by 2030. It will also contribute to decreasing Ukraine’s dependence on imported gas, hence mitigating energy supply security risks and decreasing the cost of energy supply.
“The potential for energy efficiency in Ukraine is enormous. If the country were to reduce its energy intensity to the level of Poland it could reduce its energy consumption by about one third. This could translate into a reduction of at least 30 percent in the consumption of natural gas,” said Martin Raiser, World Bank Country Director for Ukraine, Belarus and Moldova.
The investments will have environmental and broader social benefits as well. The Project will help reduce CO2 emissions by at least 1 million tons annually. And it is expected to contribute to job creation, both directly and indirectly through the benefits of increased cost competitiveness resulting from less energy intensity.
The project is a Financial Intermediary Loan to UkrEximBank as borrower which has a successful track record of lending to industrial companies for energy efficiency projects. UkrEximBank will lend directly to industrial and municipal energy efficiency projects. In addition, UkrEximBank will onlend the funds to Participating Banks (PB) to create a financial market for energy efficiency projects.
The types of energy efficiency investment sub-projects fall into several broad categories including: modernisation of inefficient and obsolete equipment/facilities; installation of highly energy-efficient industrial equipment and processes for new production capacities whose current energy use considerably exceeds current best practices; improvement of industrial systems which involves a suite of measures to increase energy efficiency; energy loss reduction in municipal sector enterprises and energy loss reduction in buildings.
Enigin Distributors in the region have Enigin plc's energy efficiency technology and know how to help the private and public sector to reduce their energy demand, use and costs.
Picture of Kiev at Night by Willy_G91
