Ukraine could “revolutionise” its energy sector by tapping indigenous resources and investing in infrastructure, says the International Energy Agency (IEA).
The Paris-based organisation has published a review of Ukraine’s energy policies and has also identified energy efficiency as a key area for development in the country.
The IEA says that Ukraine could improve energy security by expanding conventional and unconventional gas extraction and that it could also exploit opportunities in the waste-to-energy and biomass sector. It believes that Ukraine’s energy sector reforms are a step in the right direction and has called on the country to implement a strong energy strategy.
“Ukraine has already taken important steps towards energy sector reforms, but achieving the full potential for an energy revolution will require a greater policy focus on developing energy efficiency in the building and industry sectors and modernising district heating systems,” IEA Executive Director Maria van der Hoeven said. “The country must make deep regulatory reforms to foster effective competition, alongside a progressive move towards market prices to attract investment to develop the sector.”
A strengthening of energy efficiency policy in Ukraine would also improve its energy security through reduced gas consumption. This would also help domestic consumers to manage energy costs as cross-subsidies are stripped away, says the IEA.
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