The Impact of the Energy Crisis on the Management of Investment Policy in Local Government Units

Abstract

The continuous increase in prices of raw materials and fuels, disrupted supply chains, the European Union’s climate policy, and Russia’s aggression against Ukraine are some of factors that have led to the energy crisis. Recently, energy prices have been growing on an unprecedented scale. The energy crisis is also encountered by local governments, which have already taken measures to reduce costs related to energy consumption. Local governments are increasingly taking advantage of energy efficiency solutions. Several options have been launched in recent years to support the implementation of such investments, based on domestic and European funds. Howev er, the availability of these funds for local governments in different provinces varies, as does the scope of their investment. Therefore, the assessment of the actual state of affairs seems extremely important from the perspective of management efficiency and social economy. It should also be noted that on 29 September 2022, the Parliament passed the Law on Special Solutions for the Protection of Electricity Consumers in 2023. It imposed obligation on the public sector to save energy, and failure to comply may lead to restrictions. The study examines results of research on investments made by local governments in the Łódzkie and Dolnośląskie provinces in energy efficiency and renewable energy sources, with the aim to mitigate effects of the energy crisis. The analysis presented shows the direction of actions taken and their scale in 2018–2022, as well as investment objectives for 2023. Two hundred and twenty-three local governments participated in the study, which made it possible to formulate valid conclusions. The study can fill the gap in the literature on the subject.