New pilot of Ukrainian Climate Office supports local industries in decarbonizing its energy supply

For this pilot project, the Ukraine Climate Office identified the first five enterprises from different industry sectors with high potentials to reduce CO₂-emissions by investing in renewable energies and energy-saving measures. The companies were selected in coordination with the State Agency on Energy Efficiency based on criteria on e.g. size, saving potential, compliance as well as the interest to invest own money.

By shifting from fossil-based energy supply to renewable energies such as rooftop solar photovoltaics (PV) and by modernizing their industrial processes with efficient machinery and production appliances, the companies can reduce their carbon footprint and their energy costs at the same time. Using decentralized renewable energy sources, the companies also increase their energy security in times of regular power cuts and distortions of the power grid.

The Ukrainian Climate Office’s support for the companies primarily includes the following:

• Provision of a tailor-made pre-feasibility study with a detailed analysis of the energy demand of the company and concrete options to invest in renewable energy and energy efficiency solutions.
• To allow customized and demand-focused simulations and calculations, the project collects detailed data from the company in a fully digitalized process, including energy measurements at the respective manufacturing or commercial site.
• Technical and financial experts provide advice on different implementation and financing options for the investment and closely accompany the company during the whole process.
• Based on the preferences of the company, e.g. whether to prioritize energy independence, energy savings/Return on Investment or CO₂-emission reductions, the project expert team proposes different options regarding system sizing or financing models.
• Once the company decides for a concrete proposal, the project provides further support for investment realization, including matchmaking with experienced local or international technical solution providers. The Ukrainian Climate Office cooperates here closely with the Ukrainian State Agency for Energy Efficiency (SAEE).

Beginning of August 2024, already four businesses have signed Letters of Intent with the project and are eager to proceed with the project. By the end of August, special equipment will be installed at these enterprises to collect real life energy consumption data (so called load measurements, for 2-3 weeks). After that, the collected data will be analyzed and used for the technical and financial simulations. Following that, the results will be presented to the company management and next steps on how to realize the investments as well as related support needs discussed. The project team is optimistic that by end of 2024, first investments could be made so the partnering companies can benefit from energy and CO₂-savings, a more stable and secure energy supply and, in the long-run, also lower energy bills.

*The pilot project is being implemented by the Ukrainian Climate Office within the framework of the Capacities for Climate Action (C4CA) project in cooperation with the GIZ Project Development Cluster (PDC). The C4CA project is being implemented by GIZ on behalf of the German Federal Ministry for Economic Affairs and Climate Action (BMWK) within the framework of the International Climate Initiative (IKI) and co-financed by the European Union.