Ukraine has an enormous potential to save energy, said the Executive Director of the International Energy Agency Claude Mandil on Friday.
‘By 2030, the country’s projected energy savings would be as large as the United Kingdom’s total energy consumption in 2004. And this assumes only modest improvements in energy efficiencies,” Mandil said at the lunch of a new publication : Ukraine: Energy Policy Review 2006.
The International Energy Agency notes that the country’s energy policy is driven by a strong desire to improve domestic energy security and reduce gas imports. Despite this, Ukraine remains significantly reliant on non-diversified energy import, which supply almost half of its domestic energy needs. This dependence increases risks for security of supply.
High energy intensity also makes Ukraine’s economy vulnerable to price shifts and reduces competitiveness.
At the same time, the country is key to Europe’s energy security.
Mr Mandil said “transit is very important to Ukraine and transit through Ukraine is important to Europe.”
Ukraine is the largest gas transit country in the world by volume and also hosts major oil transit routes.