For years, the energy dependence of Ukraine on Russia is not only economic but also a political factor. Energy prices are unjustified, tariffs for households – uneven. The coal industry is subsidized, the state mines are considered to be unprofitable, and the process of privatization in the energy sector is hindered.
Having launched an energy reform in 2015, Ukraine stopped buying Russian gas and in 2016 ratified the historic Paris agreement. Also in 2016, a single gas price was set for all consumers, and a plan of restructuring National Joint-Stock Company “Naftogaz” was approved.
Government institutions responsible for the reform: the Ministry of Energy and Coal Industry of Ukraine, the State Agency on Energy Efficiency and Energy Saving of Ukraine.
Reform expert – Olena Pavlenko, the president of DiXi Group Analytical Center, deals with researching in the field of energy.
➤ Strengthening energy security: on Nov. 25, 2015, Ukraine stopped buying gas from Russia.
➤ Ratification of the Paris agreement on the reduction of greenhouse gas emissions.
➤ Adoption of national standards for energy audits and energy management according to the European standards.
➤ Adoption of 172 local programs on energy efficiency.
Measures to be taken:
➤ Creation of conditions for the functioning of the gas hub.
➤ Creation of favorable conditions for traders from the EU countries.
➤ Reforming of the exchange of coal electronic trading.
➤ Replacement and reduction of gas consumption, transition of gas facilities to electric energy, including that of renewable sources.
➤ Introduction of additional energy efficiency programs.
➤ Further implementation of the energy efficiency program and granting of loans for energy efficiency measures in 2017.
➤ Further providing of condominiums with financial assistance for energy efficiency measures.
➤ Reforming of the state mines, closure of the subsidized mines and employment of their workers.
Key laws adopted within the reform:
➤ The Law of Ukraine “On the National Commission for State Regulation of Energy and Public Utilities”.
➤ The Order of the Cabinet of Ministers of Ukraine “On approval of the Development program of hydropower for the period till 2026”.
Laws to be adopted:
➤ The Draft Law “On Electricity Market”.
➤ The Draft of the updated Energy Strategy of Ukraine until 2035.
➤ The Draft Law “On Disclosure of Information in Extractive Industries”.
➤ The Draft Law “On amendments to some legislative acts of Ukraine on the settlement of certain issues of the legal regime of the territory affected by radioactive contamination as a consequence of the Chornobyl disaster”.
➤ The Draft Concept of the State targeted economic program of reforming the coal industry for 2015-2020.
➤ The Draft Law “On Energy Efficiency of Buildings”.
➤ The Draft Law “On Amendments to the Law of Ukraine “On heat supplies” (as to stimulation of heat energy production from alternative energy sources)”.
➤ The Draft Law “On Housing and Building Maintenance”.
➤ The Draft Law “On Commercial Accounting of Utilities”.
➤ The Draft Law “On Environmental Impact Assessment”.