Basics of energy efficiency

Lecture content

1. Legislative definitions
2. Energy efficiency as the basis of civilization
3. Modern trends
4. Environmental dimension
5. Ukrainian context
6. Active links (NPA, standards, resources)
7. Glossary
8. Questions for self-test

It is probably difficult to find a person in Ukraine who has never heard the word “energy efficiency”. The topic seems to be familiar to everyone. We have many experts in this field, but if you look closely, you will find that most people have a rather superficial understanding.

When we say “energy efficiency”, people often immediately imagine energy-saving light bulbs, new metal-plastic windows, facade insulation – in a word, thermal modernization. Someone will also mention the energy labeling of household appliances or industrial equipment. And this is all true, but this is only a part of a larger topic.

In fact, as practice and even our legislation in the field of energy efficiency show, a deep, systematic understanding of what it is and why it is critically important for the economy and security of the country is still lacking.

1. Legislative definitions

The Law of Ukraine “On Energy Efficiency” defines energy efficiency as the quantitative ratio between work, services, goods or energy at the output and the energy consumed at the input. This definition is a translation from English-language sources and seems too limited.

The same Law specifies:

“energy efficiency measures – actions of a technical, organizational, economic, informational nature or their combination, the result of the implementation of which is an increase in energy efficiency (reduction in specific costs), which can be measured or calculated”.

The Law of Ukraine “On Energy Efficiency of Buildings” defines energy efficiency of a building as a property of a building characterized by the amount of energy necessary to create proper living conditions and/or life activities of people in such a building. This is also a limited interpretation, because in fact it is about an indicator.

2. Energy efficiency as the basis of civilization

In my opinion, energy efficiency is a key indicator in the concept of energy in general. If we delve a little deeper into history, it becomes obvious: it was the efficiency of energy use that gave humanity a chance to create civilization. Moreover, the further economic and social development of humanity directly depended and depends on how efficiently we know how to use energy.

There are wonderful books on this topic. Vaclav Smil, one of Bill Gates’ favorite authors, wrote a whole series of popular science publications, where he very easily talks about energy efficiency and the development of civilization.

Look, people began to take the first energy-efficient measures intuitively. They did not even have knowledge about energy as such. But they understood that you need to dress to keep warm. This is elementary energy efficiency.

Next came the creation of housing. Man built primitive shelters to protect himself from cold, heat, and rain. And this was also an energy-efficient step.

I always emphasize: man, unlike animals, is a very special creature. A baby is helpless from birth, unable to survive on his own. Therefore, these first steps — clothing, housing — were decisive. They laid the foundation of our civilization.

Then came evolution. We learned to use resources more efficiently: we mastered fire, began to use animals in agriculture, and were engaged in breeding to get stronger animals and more kinetic energy for our own needs. This can also be called energy-efficient measures.

In fact, the entire socio-economic history of mankind is the history of a constant search for new, more efficient forms of energy use.

3. Current trends

Today we live in the time of the greatest energy transformation in human history. And it is directly related to energy efficiency. The entire economic model of our existence has always been based on how efficiently we can use energy – for heating, cooking, in production or transport.

Construction is another example: since ancient times, the main criterion has been energy efficiency. Both during the construction of structures and in how energy is stored or consumed in these buildings. If we look more broadly, even many cultural heritage objects – carpets, tapestries – also emerged as a kind of energy efficiency measures, because they helped to retain heat.

The discovery and spread of charcoal, the development of metallurgy, transport, electricity were revolutionary. That is, without understanding energy and energy efficiency, we will not understand any of the key milestones in the development of civilization.

Humanity has already gone through technical revolutions several times. But the greatest breakthroughs in socio-economic development have always been associated with the efficiency of energy use.

A few years ago, it was fashionable to call energy efficiency the “fifth fuel”. Today we already haveanother picture: in 2024, the International Energy Agency officially called energy efficiency the “first fuel” for the first time. This is a huge step.

We are seeing a breakthrough in renewable energy. Humanity has learned to use the energy of the sun, wind, and water. The industrial production of solar panels is actually a tool for energy efficiency. Currently, their efficiency is about 18%. It seems like a small amount, but even an additional 5% can create a real technological breakthrough. Europe is already facing a problem: there is simply not enough space to place solar panels on an industrial scale.

The story with wind is even more interesting. We have used it for hundreds of years — from drying laundry to sailing ships. Today, we convert wind energy into electricity with an efficiency of up to 65% — and this is a limit that is physically difficult to exceed. The same can be said about hydropower.

And electricity? This is a separate era altogether. Its invention and industrial use is one of the greatest energy-efficient breakthroughs. Although there are also losses here: we will always have certain limitations. High-voltage networks, the transition to new voltage classes – all this is done for more efficient transmission. And in modern Ukraine this is a huge challenge.

Transport is another area where the issue of energy efficiency is very acute. And here oil and oil products still play a leading role. For example: hydrogen, which we often call the “fuel of the future”, still loses to gasoline according to the basic criterion of energy efficiency, because even its storage requires additional energy costs.

4. Environmental dimension

Today, humanity understands: an ecological resource is as limited as any other. If earlier this looked more like an ideological slogan, now, due to the need to prevent climate change, it has become an economic reality.

A new factor for assessing efficiency has appeared. On the one hand, this is a consequence of the use of energy resources – after all, climate change is directly related to energy production and greenhouse gas emissions. On the other hand, this factor has begun to determine energy efficiency itself, becoming a key criterion.

The European Union in its Energy Efficiency Directive places special emphasis on this. It directly states: preventing climate change and rational use of resources are the basis of energy policy. Therefore, today energy efficiency is inextricably linked to how wisely we use energy resources.

It is not for nothing that it is called the first type of fuel. And this is not just a beautiful metaphor – it is a reality that determines the development of not only the world energy industry, but also the global economy.

5. Ukrainian context

Today, Ukraine does not have many levers for accelerated socio-economic development. And we need it vitally — both to overcome the consequences of terrorist attacks and to compensate for years of economic backwardness. And in this context, underestimating the energy efficiency factor can cost us very dearly — literally deprive us of the prospects for qualitative development.

Therefore, it is important to look at energy efficiency not narrowly, but in a broad context — in the context of the entire energy sector and the entire energy system. When we talk about energy efficiency, we mean comprehensive measures both in the Ukrainian energy sector and in the economy as a whole. This includes the formation of national state policy, the implementation of regional programs, and corporate energy efficiency policies in the private sector. Without this, it is impossible to talk about a real breakthrough in socio-economic development.

Europe has a clear guide — the principle of Energy efficiency first. It sounds very simple: in any conditions, with any decisions, the factor and resource of energy efficiency must first be taken into account. Unfortunately, in Ukraine this principle has not yet reached the required level of attention and planning.

It is good that we managed to lay it at the basis of the Law “On Energy Efficiency”. In Article 2 of this law it is directly stated:
“This Law regulates relations arising in the field of ensuring energy efficiency, and is aimed at strengthening energy security, reducing energy poverty, sustainable economic development, preserving primary energy and reducing greenhouse gas emissions. The sphere of ensuring energy efficiency covers energy-efficient measures carried out during the production, transportation, transmission, distribution, supply and consumption of energy”.

But so far this is more of a formal norm than real practice. And here it all depends on you and me – whether we turn it into real actions or leave it on paper.

📎 Active links

• Law of Ukraine “On Energy Efficiency” (Vidomosti Verkhovnoi Rada of Ukraine (VVR), 2022, No. 2, Art. 8) https://zakon.rada.gov.ua/laws/show/1818-20#Text
• Law of Ukraine “On Energy Efficiency of Buildings” (Vidomosti Verkhovnoi Rada (VVR), 2017, No. 33, Art. 359) https://zakon.rada.gov.ua/laws/show/2118-19#Text
• DIRECTIVE (EU) 2023/1791 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 September 2023 on energy efficiency and amending Regulation (EU) 2023/955 (recast) https://eur-lex.europa.eu/eli/dir/2023/1791/oj/eng
• National action plan on energy efficiency for the period up to 2030 https://saee.gov.ua/diialnist/enerhoefektyvnist/natsionalnyi-plan-dii-z-enerhoefektyvnosti-na-period-do-2030-roku