The initial focus of the fund has been energy efficiency in Ukraine. According to a recent report by the International Energy Agency, Ukraine uses around 3.2 times more energy per unit of GDP than the average in OECD countries. This is because of a high concentration of energy-intensive sectors, inefficient district heating systems, old industrial processes and the poor quality of building stock. Owing to insufficient investment in the district heating systems, more than half of the input fuel is wasted.
Based on pledges of €108 million, the E5P contributors have approved over 15 projects so far including modernisation of district heating networks, upgrading of water and wastewater systems, and measures to improve energy savings in public buildings. Other projects to improve energy efficiency in the residential sector and use of renewable sources of energy are being prepared. For the district heating investments, the E5P grants focus on individual heating substations to enable the residents to control their heat supply. It is estimated that the currently approved E5P projects for Ukraine will collectively reduce CO2 by more than 536,103 tonnes per year and achieve gas savings of 120 million of m3 per year.