Promoting Energy Security through Greater Energy Efficiency
Event Summary
February 28, 2006
On February 28, nearly 70 people from government, academia, the media, the NGO community, and the private sector discussed strategies for Ukraine to promote energy security through greater energy efficiency.
U.S. Ambassador to Ukraine John Herbst opened the seminar by describing programs which encourage Americans to conserve energy, such as tax-credits for the purchase of hybrid vehicles, research and development grants to discover new "green" energy technologies, and large household appliance labels which help Americans calculate the savings they will enjoy in their electrical bill by using more energy efficient products. He encouraged the participants to work to strengthen the Ukrainian economy by modernizing inefficient, energy-wasteful processes. Ambassador Herbst added that the government's role in promoting energy efficiency could be to offer market-based incentives and stimuli for efficiency modernizations and alternative fuel sources.
A panel of experts continued the discussion. Mr. Oleksandr Yerokhin, Leading Specialist from the Agency for Rational Energy Use and Ecology (Arena Eco) stated that there is national support for use and development of non-traditional energy sources but Ukraine's inefficient, burdensome regulations and decision-making processes limit investment in this sector. He called for an improved certification system and energy rates that would encourage greater energy efficiency.
Mr. Yevgeniy Nikitin, Director of the Union of Industrialist and Entrepreneurs' Commission on Energy Efficiency Issues and President of the International Center for Energy Efficiency Technologies, called for strengthening the auditing of energy use in Ukraine to encourage more rational use. He noted that stronger relationships needed to be fostered with banks for them to help finance investment in energy efficient technologies. Mr. Nikitin stated that current laws should be amended to bolster Ukrainian enterprises' use of energy saving technologies.
Dr. Yuriy Shulga, State Expert of the Council of National Security and Defense of Ukraine, added that Ukraine's top economic priority should be greater energy efficiency. He predicted that up to 48% could be saved over current wasteful practices. However, he cautioned that this savings cannot be realized overnight. It will take improved incentives, greater investment, and a long-term view. The Council is creating a large international energy services company which will bring investments and innovations to Ukraine in the field of energy efficiency.
Mr. Michael Curran, Emission Trader with the Renewable Energy Department of Cargill International, argued that higher energy prices are here to stay. Thus for companies to improve their productivity and profits, they need to invest in energy efficient technologies. He described how Cargill International reduced its use of fossil fuel in Donetsk by burning previously discarded sunflower seed hulls. The steam from this burning has generated nearly half of the plant's total electricity needs. Mr. Curran also encouraged Ukraine to finalize its legislation for carbon credit trading. Since Western Europe is currently carbon capped under the Kyoto Protocol, he argued that this legislation would permit financial groups and others in the private sector, such as Cargill International, to structure financing for energy efficient technologies around the carbon credits generated through the energy savings.
Mr. Douglas Kramer, Economic Counselor of the U.S. Embassy, then moderated an energetic discussion on how best to make Ukraine more energy efficient. Twenty key media outlets covered the event, thus bringing the issue to millions of Ukrainians throughout the country.
The program echoed U.S. President George W. Bush's recent call for the United States to develop alternate energy sources and promote greater energy efficiency. Copies of President Bush's speeches, in addition to other informational materials, were distributed to seminar participants.