05.06.2026
On May 26, in Kyiv, within the framework of the International Specialized Exhibition Green EnerTech – 2026, the Energy Forum “Energy Decentralization 2026: Generation, Storage and Financing” took place at the International Exhibition Center, organized by the Energy Club business community together with Kyiv Global Expo.
One of the speakers at the event was Vitalii Shevchenko, CEO of the Panorama Group of Companies and Chairman of the Board of the NGO “Ukrainian Association of Energy Service Companies”, who spoke about the opportunities of energy performance contracting (ESCO) for modernizing municipal and critical infrastructure without initial capital expenditures from local communities.
According to Vitalii Shevchenko, today most communities face identical challenges: limited budgets, lack of funds for modernization, worn-out equipment at water utilities, hospitals, schools, and other public facilities, as well as steadily rising energy costs. Therefore, the ESCO mechanism is becoming one of the most practical tools for infrastructure renewal.
“ESCO is a model under which an investor modernizes a facility, and the customer repays the investment entirely through guaranteed energy savings,” explained Vitalii Shevchenko.
The mechanism involves conducting a feasibility study, establishing a consumption baseline, and implementing energy efficiency measures funded by the investor. After the modernization, the achieved savings are verified, and the customer gradually reimburses the investor solely through the generated economic effect. Upon expiration of the contract, the equipment becomes the property of the customer, and all subsequent savings remain with the community.
“Effectively, the community does not invest its own funds at the start. All that is required is the customer’s willingness to implement an energy-efficient project,” underscored the CEO of the Panorama Group of Companies.
All procurement under energy service contracts is conducted via the Prozorro system.
The greatest effect, according to the speaker, is achieved at facilities with stable energy consumption. This primarily applies to:
Projects for critical infrastructure objects are particularly promising, where electricity consumption occurs mainly during the day and aligns with solar generation output.
The Ukrainian Association of Energy Service Companies has been operating for seven years and unites around 50 active market participants. Over this period:
During his speech, Vitalii Shevchenko presented a number of completed projects. For instance, a 100 kW solar power plant was installed at a hospital in Drohobych. The annual displacement of electricity consumption stands at about 12%, and the savings for the medical facility reach UAH 600,000 per year.
In Vyshhorod, a 150 kW solar power plant operates at the local water utility with an annual generation of 165,000 kWh. This allows for savings of around UAH 1.5 million each year.
The speaker paid special attention to the street lighting modernization project in Korosten, Zhytomyr region. Within the project, the city’s lighting system was completely upgraded: 2,800 LED lamps were installed, and control cabinets and metering units were modernized. The result is an annual saving of UAH 5.8 million. According to Vitalii Shevchenko, when the contract was signed, the electricity tariff was UAH 3.90 per kWh, so the subsequent increase in electricity costs significantly shortened the investment payback period.
“ESCO projects are long-term solutions with specific, measurable savings for the customer,” he stressed.
To launch a project, according to the speaker, a community needs to:
Once the economic effect is confirmed, the investor carries out the design, construction, and provides energy performance services.
Separately, Vitalii Shevchenko pointed out that the regulatory framework has become significantly more favorable for such projects in recent years. During martial law, procedures were substantially simplified. While previously the approval of a consumption baseline could take up to six months, it now takes only three to four months from the customer’s decision to the start of project implementation.
During the discussion, forum participants also raised safety questions regarding rooftop solar power plants, specifically concerning lightning protection and fire risks. Responding to the queries, Vitalii Shevchenko emphasized that these aspects are mandatory components of the project documentation and are fully factored in at all stages of project development and execution.
Attendees also inquired about the prospects of ESCO mechanisms for housing cooperatives and condominiums (OSBB). According to the speaker, no such projects have been implemented yet, but the Association does not rule out extending this direction in the future. Every facility requires an individual technical and economic analysis and investment attractiveness assessment.
Concluding his speech, Vitalii Shevchenko prioritized that the primary goal of the Association is to make energy service accessible to the maximum number of communities and to attract new investors to modernize public infrastructure. Today, ESCO has proven its effectiveness not only as an energy-saving tool but as a real mechanism for community development. In a situation where local budgets are constrained while the need to modernize critical infrastructure keeps growing, energy performance contracting allows communities to implement necessary solutions right now instead of postponing them for years — with zero upfront costs, predictable results, and long-term savings.
