Ukraine has adopted a number of regulations aimed at encouraging the production of power from renewable energy sources, and aims to produce 10 percent of its power from renewable sources by 2020. Public-private partnerships can help Ukraine meet this goal. By tapping into private sector financing and technology, heat and power can be produced more efficiently. This can reduce costs, increase energy independence, and cut greenhouse gas emissions—all attractive options in Ukraine, where energy use is highly inefficient and dependent on imports.
P3DP addresses energy efficiency and climate change in all its programming activities at both national and local levels, working within the framework of USAID’s Global Climate Change and Development Strategy. In addition to supporting legislative change to reduce emissions, P3DP is providing advice on two PPP projects that encourage renewable energy use and increase energy efficiency.
The Malyn Municipal Heating with Renewable Energy PPP will allow a small municipality in Zhytomyr Region to heat schools with a boiler that burns straw pellets instead of natural gas. As transaction advisor, P3DP prepared the feasibility study, legal review, and environmental assessment for the project. We also brokered discussions between the municipality, producers of straw pellets, and technical experts; drafted the PPP contract and tender documents; and communicated key information about the project to schools, government, the private sector and the general public. Municipal energy costs are expected to fall by at least 10 percent, and carbon emissions will be reduced by 11,000 tons over the life of the project..