Why energy planning is important

Energy sector is currently among the key challenges of Ukrainian cities in the conditions of COVID economics and armed conflict. What is worse, Ukraine depends on importing, from Russia as well. Fossil share is still considerable in urban and hromada consumption, and domestic extraction does not cover the demand for it. Despite that market price control for electricity and natural gas gradually wins over monopoly, it at the same time increases energy poverty. 

Worldwide gain in price for natural gas has touched most municipalities, as shortly before heating season 2021-2022 gas costed a pretty penny – on average, 35 to 45 UAH per cubic meter. It put under threat the heating of schools, kindergartens, hospitals, military units and other social service institutions. 

Domestic consumers were affected as well. In August 2021 most local administrations have increased price for heating at 30 to 70% depending on the region. State department of statistics claims that by August 1, 2021 domestic users had 20,3 billion UAH debt for heating services. In conditions of poor energy saving measures in Ukraine, another price gain may result in another epidemic of non-payments, bankrupcy of heating companies and social-economic disaster in all Ukrainian municipalities. 

In order to prevent rise of price rates and riots the government was forced to approve a political measure and sign a memorandum on September 30, 2021 that stipulates the procedure of compensating remainder through diverting to local budgets in 2022 4% revenues from individual income tax, that is, at least 11 billion hryvnias in numbers.

Despite that, the issue of purchasing gas at a steady price is not settled for municipalities, since, unlike domestic users, public institutions must carry it out through Prozorro, where market price is stated. 

The situation shows how risky it is to be dependent on fossils when market prices rule supreme, energy effeciency level is nought and the population is heavily stuck in energy poverty. 

What is the way out?

A fine energy planning may be a milestone for cities on their way to energy independence. 

In a perfect world a city should have a strategy or a plan of complete transition to renewable energy sources, and elaborate energy action plans every 5 to 10 years as much ambitious as state strategies and plans. This is exactly the way Japanese energy policy runs. In addition, the state does a certain influence at entrepreneurship. For example, companies are obliged to decrease yearly energy consumption at least by 1% and report on it. In case they refuse, their names appear on government website black list, and the Japanese may choose to boycott their products and services. 

Most hromadas now have some documents like: Strategical development plans, Programs for energy saving and energy efficiency, Programs for electrical traffic, Programs for reformation and development of housing and communal services, etc, yet their maturity is quite doubtful, as we don’t observe investors standing in a queue, willing to put money into local energy sector, while hromadas with a brilliant energy planning and strong team of investors are already on their way to energy independence. 

What’s to be stressed on while developing hromadas’ energy policy

Systemic management of energy resources in municipalities is the first thing. All developed documents must work synergically and with purposed program financing as a base. Energy management in municipality is an essential condition. 

Before developing plans and programs one should carry out quality energy audits for buildings so as to define top priority measures for energy efficiency that obligatory comply with requirements on indoor microclimate and have affordable payback period. 

Energy monitoring. Not so long time ago public institutions stuck to low-efficient accounting of energy consumption, with logistics managers still sometimes taking the figures down on a piece of paper – a practice that stands in the way of implementing high-quality energy monitoring. It is keen to start a municipal informing system that would remotely check the amounts of energy consumed, at least in public and communal institutions. The precise readings can help improve the quality of energy-saving measures. 

Energy management. Energy management departments play a specific role in implementing strong energy policy in municipalities. It is of vital importance that they have enough high-qualified employees responsible for energy monitoring and investment policy. They must be constantly educated, given opportunities for trainings, domestic and abroad. It is important to make friends with NGOs, as they can be partners in powerful energy-saving informational campaigns. 

What’s more to money-saving?

Energy safety. Local renewables instead of expensive imported fuels open the way to energy independence of hromadas and the whole country. The transition stipulates analysis of local renewables’ potential, thermal modernization of old buildings and gradual replacement of fossils by renewables. 

In transferring to renewables first thing is good informational and enlightening work with consumers, population and enterprises among them. Key points may be good old energy safety and doing away with dependence from fossils. 

Sustainable development. Systemic and energy efficient policy can provide sustainable development for municipalities even together with covering current demands and securing climate and environmental justice for future generations. Special attention is needed for implementing circular economics within cities, when debris of old buildings become a material for new public institutions and are taken into consideration while estimating hromada’s resource potential. 

Environmental safety. In sustainable development energy saving and efficiency means the decreasing demand for non-renewable energy sources and lower emissions of carbon dioxide and other greenhouse gases. Thus, cities can reach zero impact on climate and keep global temperature rise within 1,5 degrees compared to pre-industrial epoch. 

Adaptation of cities and villages to climate change. Sustainable development of municipalities can not do without adaptation to climate change. Floodings, heat waves, enormous heat, dust storms directly affect urban life and block instant access to crucial social and economic infrastructure, require budget expenses for coping with the aftermath and impact the quality of living and public safety.

Overcoming energy poverty. Due to climate change, combined with decreasing purchase power and Russian invasion, vulnerable social groups can not access high-quality heating, hot water, comfortable traffic, energy-efficient utensils and pay for electricity. The majority has to spare money by choosing worse indoor microclimate. 

Since population’s life and well-being are top priority for hromadas, an efficient planning of infrastructure, access to high-quality energy supply, and thermal modernization programs, and renewables are starting points when it comes to elaboration of minucipal energy plans. 

A concluding part

Ukraine has got a considerable potential for ambitious energy policy in hromadas, enough to increase energy efficiency of buildings and entreprises by two times! It is why hromadas’ energy planning is that important. It must be operational, integrated and cleverly calculated. There is no time left to delay it. Populism has to become a thing of the past. Ukrainian cities demand investments in energy transition, since state sovereignty can not exist without energy independence. 

By: Maryna Sadkina, Yuliya Mel’nyk