Fatih Şahin Фатіх Шахін Ukraine, business and international experience — since 2004
Energy & Infrastructure

The cheapest energy is the energy not used

Ukraine inherited some of the least efficient buildings in Europe. Fixing that is duller than building generation and worth considerably more.

100 Сільський клуб after 2
Photo: REACH GIS · CC BY-SA 4.0

Ukraine consumed dramatically more energy per unit of output and per square metre of housing than comparable European countries. That is an inheritance, not a choice, and it has a specific explanation.

Why consumption was so high

Buildings constructed when energy was effectively free at the point of use. District heating systems with no metering and no control at the apartment level — a resident too hot in February opened a window, because there was no other way to regulate the temperature.

Industry built to the same assumption, and insulation standards written for a country that was not paying market prices for gas.

What was done

Metering first, because you cannot manage what you do not measure, and a household that pays for what it uses behaves differently within one season.

Then a fund for the thermal modernisation of apartment buildings, which was designed intelligently: it works through the building association rather than the individual flat, since a single insulated apartment in an uninsulated block achieves almost nothing. Co-financing rather than grants, so the residents have a stake.

Then heating substations with actual controls, so a building can regulate its own supply instead of opening windows.

Why it matters more now

Every unit of demand removed is a unit of generation that does not have to be defended, repaired or imported. In a system under attack, efficiency is not an environmental policy. It is a resilience measure, and it is by a wide margin the cheapest one available.

What is unfinished

The housing stock is enormous and the work is slow, building by building. It is also the most reliable long-term investment in Ukrainian energy — a modernised building keeps delivering for forty years and cannot be struck.

The hardest thing to sell in equipment is an invisible gain. A customer sees a new machine and does not see insulation, yet the payback period is usually shorter on the insulation. The energy Ukraine loses through its building stock is the largest and dullest opportunity I have seen in twenty years here, and it is still there precisely because it is dull.

Related reading

Comments

If you have something to add, please do. Comments are read and approved before they appear.

Published after approval.