On February 8, in Odesa, MDI held a public presentation of the Regional Energy Plan of Odesa Region, a strategic document establishing the energy policy of the biggest region in Ukraine and providing opportunities for the region to lead energy efficiency advancement in the country.


In attendance of the presentation were executives of Odesa Oblast State Administration, deputies of Oblast Council, members of the Advisory Committee on Development of Odesa Regional Energy Plan, representatives of eight municipalities – signatories of the Covenant of Mayors, members of the Public Council functioning within Odesa Oblast State Administration, general public, and media.


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This is the first ever experience for Ukraine when a regional energy plan was developed for the region. The strategic objective of Odesa REP is in increasing energy, socio-economic and environmental safety of Odesa Region due to reducing of consumption of fossil fuels, including substitution of fossil fuels with alternative and renewable energy sources, and gradual increasing of quality of housing and communal services and living conditions of population for reaching the European quality of services and quality of life. Odesa REP will become a Road Map for oblast and municipal authorities in Odesa Region as regards management of energy processes and securing energy security of the region.


As a result of the implementation of the Regional Energy Plan, by 2022, Odesa Region will reduce consumption of energy resources (natural gas – by over 22%, electric energy – by 36%), reduce CO2 emissions, diversify energy sources (due to renewable energy sources) and increase effectiveness of regional programs due to improving of energy consumption monitoring system.


The Investment Program of Odesa REP consists of the energy efficient projects in different municipal sectors for the implementation of which Odesa Region will need UAH 29.5 billion by 2022. Total accrued economic effect of Odesa REP implementation will make UAH 3.8 billion and population of Odesa Region will save about UAH 2.6 billion.


The Regional Energy Plan of Odesa Region was developed by MDI in the framework of fulfillment of tasks under the USAID Municipal Energy Reform in Ukraine Project. MDI embarked on Odesa REP development in May 2017 and prior to development of the REP MDI:

  • developed the Methodology for Development of the Regional Energy Plan of Odesa Region - jointly with EnEffect (Bulgaria);
  • established the Advisory Committee on Development of the Regional Energy Plan of Odesa Region – jointly with Odesa Oblast State Administration. The Advisory Committee was established by a special resolution by Odesa Oblast State Administration. MDI provided assistance to Odesa authorities to develop the regulations on the Advisory Committee, structure of the Committee, and draft resolution on establishment of the Advisory Committee;
  • developed questionnaires to gather technical and economic and financial data and analyze stakeholders at the local level (rayons and cities not covered by the Sustainable Energy and Climate Action Plan);
  • developed the structure of REP document and concepts for all REP chapters covering the following sectors: district heating; buildings (public and residential); centralized water supply and sewage; transport; household waste management; alternative energy sources;

The Regional Energy Plan of Odesa Region consists of 11 chapters, which are:

  1. Regulations on the Regional Energy Plan of Odesa Region.
  2. Strategic objective and tasks, coverage and stakeholders.
  3. General description of Odesa Region and presentation of socio-economic indicators.
  4. Description of the baseline scenario of energy consumption.
  5. Initial conditions and assumptions made during REP development.
  6. Special-target program on implementation of public education and outreach and institutional measures.
  7. Analysis of energy efficiency potential and alternative energy sources in Odesa Region.
  8. Investment Strategy of Odesa REP Implementation.
  9. Assessment of socio-economic and environmental effect.
  10. Monitoring of Odesa REP implementation.
  11. Sensitivity analysis of Odesa Region for climate change impacts.

and four appendices:


Appendix 1. Full list of national, regional and local programs, plans, and normative acts used during REP development.
Appendix 2. SWOT/PEST of the Regional Energy Plan of Odesa Region.
Appendix 3. Stakeholder Engagement Plan.
Appendix 4. Description of perspective land plots for construction of solar plants. Main technical and economic issues about solar power plants.


Regional Energy Plan of Odesa Region for the period 2018-2035 – difference from other documents adopted in Ukraine during 2014-2015

  • In the existing documents, indicators are not split and presented by region. This makes data management ineffective due to specific conditions pertinent to different areas and regions, their specifics and unique potential.
  • The existing documents do not consist of substantiations on investment sources, including sources by sector, project type, region. This makes adopted strategies unrealistic due to the lack of financing or insufficient financing.
  • The existing documents do not reflect the indicative targets on reduction of CO2 emissions.
  • The existing documents do not consist of clear regulations on implementation monitoring and responsibility for specific tasks, sectors, and measures.
  • The existing documents do not present specific description of implementation procedures.

Regional Energy Plan of Odesa Region for the period 2018-2035 – difference from energy panning according to the Methodology of the Covenant of Mayors - Sustainable Energy and Climate Action Plans?


A Sustainable Energy Action Plan (SEAP) is a part of the strategic planning of a municipality reflecting the main goal of activities of local authorities as regards energy processes management and establishing the link between main goals and tasks and indicators for measuring effectiveness of activities on ensuring sustainable municipal energy development.


The methodology of SEAP development rests on the key elements which are:

  • Comprehensive technical, financial and management analysis (audit) of all municipal infrastructure sectors;
  • Attainability, flexibility, correctness, measurability, acceptability of SEAP goals and tasks;
  • Stakeholder engagement into strategic planning;
  • Catalog of investment projects (developed on the basis of energy audits of key infrastructure sectors). The investment projects presented in the catalog should have the necessary amount of investments, expected saving, and recommended investment sources.
  • Project proposals are ranged by sector based on sector-specific financial, economic, environmental, and social criteria. Implementation of each project proposal is analyzed and implementation effect is assessed.
  • Monitoring system, reporting, responsible persons by sector, intermediate indicators.

Benefits for Odesa Region


District heating and centralized water supply and sewage sectors, alternative energy sources:

  • additional financial resources allocated from the oblast budget for the implementation of energy efficiency measures, reduction of energy and fuel consumption, and implementation of Clean Energy projects;
  • increasing effectiveness of local energy saving programs due to involvement of research and development teams from higher educational, academic and design institutions having experience regarding regional engineering research and development, with consideration of the regional specificity of such programs;
  • obtaining financial and technical assistance during preparation for heating seasons and maintenance of heating networks and energy sources of centralized and autonomous heating systems at the local level;
  • diversification of financial sources, reduction of possible investment pauses during execution of works on ensuring stable and reliable operation of heating systems in the region;
  • ownership and land use issues with regard to construction of boiler houses and plants on renewable and alternative energy sources, construction of windmills, and growing energy crops which can be used as raw materials for boiler houses connected to centralized heating systems;
  • creating conditions for development of the competitive energy saving environment at the regional level.

Buildings owned by budgetary institutions:

  • establishing the effective energy management and energy monitoring system at the regional level, first of all, for oblast-level buildings;
  • establishing the system for planning, control and reporting on execution of energy saving and energy efficiency works at the regional level. Forming energy saving and energy efficiency policy by including energy saving and energy efficiency issues on agenda of rayon councils and due to ensuring oblast council's support to various projects.

Residential buildings, local self-governance:

  • professional development on energy saving and implementation of Clean Energy projects for heads of rayon, community and territorial councils and other categories of workers;
  • energy efficiency improvements can be implemented in unified territorial communities, rayons and cities, which do not have SEAPs and for which SEAPs will never be prepared.

Diversification of energy sources and increasing investment attraction opportunities:

  • inter-budgetary transfers (subventions) between budgets;
  • obtaining financing from the State Fund for Regional Development;
  • obtaining subventions for socio-economic development from the national budget and subventions for infrastructure development at unified territorial communities;
  • attracting private investments into the infrastructure projects at the regional level.

Household waste management:

  • setting up an enterprise (enterprises) with modern equipment and qualified staff for dealin with sanitary issues and household waste management in the region. The enterprise will be providing services to rural areas;
  • setting up an enterprise for processing secondary raw materials at the regional level. Raw materials will be collected from all localities in the region. Such approach will also help reduce costs for processing of one ton of secondary raw materials due to increased volumes;
  • growing interest from the side of investors as a result of the increasing volumes of secondary raw materials and marketing opportunities for raw materials in and outside the region;
  • setting up a waste-to-energy enterprise (availability of raw materials);
  • creating incentives for small and medium-sized enterprises at the regional level (production of granules, processing of raw materials);
  • attracting financing from IFIs which, according to their policies, provide financing under local guarantees.