Ukrainian Energy Efficiency – A Booming Business Opportunity?
beyondbrics describes here how Ukraine is in the short term seeking to loosen Russia’s grip on Ukrainian energy supplies by using less gas. Surprisingly, all the massive apartment blocks of communist-era housing aren’t all that efficient. To cut down on gas usage, reforms have been undertaken to improve energy efficiency:
Progress has been made, he said, mainly by introducing more efficient boilers, moving them closer to residential buildings, replacing and insulating hot water pipelines and switching away from gas as an energy source to coal, solar and other resources.
But Ukraine is not, at the moment, rolling in it. Thankfully, we’ve thought of a potential solution (first, we’re going to need you to wire $1,000 to an account in Nigeria…). Alright, it’s not a solution at all, more like a speculative stab at a business model.
Would a scheme be possible in which a company provides energy saving upgrades to infrastructure at a current discount, in exchange for a cut of the savings to be gained over a specified timeline? How exactly such an instrument would be structured is up for debate (variable in quantity payouts over a fixed timeline, i.e. X% of savings over Y years comes to mind), but it doesn’t seem like the dumbest thing you’ve ever heard. Right?* Perhaps creating a market in Ukrainian energy efficiency reforms would generate a bit of the capital necessary to carry them out.**
*No, obviously I’m sure it’s pretty high up there on the list
**To be fair, a good number of the specific measures mentioned seem pretty capital-intensive, so perhaps at that point it just becomes some weird energy savings linked infrastructure bond instead of a nice slice of the gains from installing installation