Issue: № 5, 2026
Doi: https://doi.org/10.37634/efp.2026.5.6p
Introduction. Local self-government bodies play a key role in the implementation of Ukraine's energy efficiency policy, since a significant share of energy consumption is concentrated at the municipal level – communal property buildings, heat supply systems, water supply and sanitation, street lighting, and social infrastructure. The normative and legal regulation of the competence of local self-government bodies in this field remains insufficiently developed: existing legislative acts often conflict with each other, do not clearly delineate powers between different levels of public authority, and do not fully comply with EU standards. The purpose of the paper is to investigate and analyse the legal foundations of the competence of local self-government bodies in the field of energy efficiency, identify existing gaps and contradictions in legislation, and develop proposals for improving legal regulation in this area. Results. The study establishes that the key legislative act defining the competence of local self-government bodies in the field of energy efficiency is the Law of Ukraine 'On Energy Efficiency' No. 1818-IX of October 21, 2021, adopted to implement Directive 2012/27/EU. Under Article 4(10) of this Law, local self-government bodies are empowered to develop and approve local energy plans and medium-term target programmes, decide on introducing energy management systems in the territory of the respective community, create local target funds for financial support of energy efficiency measures, and implement energy efficiency measures. The study identifies interconnected systemic problems: unclear delineation of powers between levels of public authority, absence of effective financial mechanisms, conflicts with sectoral legislation (Laws on Heat Supply, on Natural Monopolies, on Drinking Water), limited use of the ESCO mechanism under Law No. 327-VIII of 2015, and the absence of effective accountability mechanisms. The EU integration dimension is analysed with reference to Directive 2012/27/EU and the Association Agreement. The participation of over 100 Ukrainian municipalities in the Covenant of Mayors initiative is highlighted as a proven practical instrument. Conclusion. The proposed measures – legislative consolidation of an exhaustive list of municipal powers in the field of energy efficiency, improvement of the ESCO mechanism, elimination of legislative conflicts with sectoral laws, strengthening methodological support from the State Agency on Energy Efficiency, and expansion of international cooperation – are complementary and aimed at building an effective system of municipal energy management capable of ensuring rational use of energy resources and contributing to Ukraine's energy independence.
Keywords : local self-government, energy efficiency, competence, powers, energy policy, communal property, decentralisation, ESCO
References:
1. Law of Ukraine 'On Energy Efficiency' dated October 21, 2021, № 1818-IX. URL: https://zakon.rada.gov.ua/laws/show/1818-20 (In Ukrainian).
2. Association Agreement between Ukraine and the European Union dated June 27, 2014, ratified by Law of Ukraine № 1678-VII of September 16, 2014. URL: https://zakon.rada.gov.ua/laws/show/984_011 (In Ukrainian).
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4. Constitution of Ukraine dated June 28, 1996 (as amended by Law № 2680-VIII of February 7, 2019). URL: https://zakon.rada.gov.ua/laws/show/254к/96-вр (In Ukrainian).
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