Optimal strategies for attracting private investment in energy efficiency projects at the household level

Abstract

In order to create a thriving clean energy industry, it is necessary to increase the number of households involved in energy efficiency. In addition, favorable conditions should be created to attract investment in innovation to create new energy-saving technologies. This also means expanding the use of existing environmentally friendly energy solutions, such as solar or wind energy development, which is particularly relevant for Ukraine, given the extensive damage to energy infrastructure caused by the fighting. When the cost-effectiveness of measures and guarantees of return on investment are insufficient for private investors or when measures that only indirectly contribute to energy efficiency are involved, financial support from the state is required, which should also be considered when developing approaches to ensuring the establishment of an effective system for investing in energy efficiency projects. Given the relevance of the topic under study, its goal is to identify the best ways to attract private investment in energy efficiency projects at the household level. To achieve this goal, the following tasks should be solved: to conduct a statistical analysis of the energy sector in Ukraine, to identify opportunities for financing energy efficiency projects in the residential sector, and to formulate recommendations for attracting resources to implement energy efficiency projects by households. The methodological basis of the study is statistical analysis and general scientific research methods. The study proves that co-financing, already being implemented in Ukraine under specific projects described in the paper, can become one of the main directions for developing energy efficiency projects. The strategies for supporting investment projects and raising funds to finance energy efficiency projects are also detailed and systematized. Possibilities of co-financing from various sources for projects in the main areas of energy saving are described in detail, which may be helpful primarily for households focused on implementing energy efficiency projects, either in terms of renewable energy production or improving the energy efficiency class of premises.