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TWINNING PROJECT FICHE

Improvement of the Policy Framework in the Sphere of Energy Efficiency and its Approximation to the Requirements of

the EU Legislation

UKRAINE

2011

EUROPEAN UNION DELEGATION OF THE EUROPEAN UNION TO UKRAINE

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The List of Acronyms, Abbreviations and Special Terms

EUDEL - The Delegation of the European Union to Ukraine

BC - Beneficiary Country (beneficiary of twinning projects under IPA or ENPI)

BC PL - Beneficiary Country Project Leader

BI - Beneficiary Institution

CMU - Cabinet of Ministers of Ukraine

EC - European Communities

COMM- European Commission

ECT - Energy Community Treaty

ENPI - European Neighbourhood and Partnership Instrument, successor of the TACIS and the MEDA programmes for the period 2007-2013. Community assistance under the ENPI shall promote enhanced cooperation and progressive economic integration between the European Union and the partner countries and, in particular, the implementation of partnership and cooperation agreements, association agreements or other existing and future agreements. It shall also encourage partner countries’ efforts aimed at promoting good governance and equitable social and economic development. Ukraine is covered by the ENPI.

EU - European Union

MS - Member State(s) of the European Union. From 1st January 2007 the European Union consists of 27 MS

MS PL - Member State Project Leader NEA - New Enhanced Agreement (to replace PCA)

NEEAP - National Energy Efficiency Action Plan

PAO - Programme Administration Office

PCA - The formalisation of bilateral relations between the EU and individual partner countries has been achieved through the negotiation of Partnership and Co-operation Agreements (PCAs), now in force with ten of the Eastern European and Central Asian countries. PCAs are legal frameworks, based on the respect of democratic principles and human rights, setting out the political, economic

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and trade relationship between the EU and its partner countries. Each PCA is a ten-year bilateral treaty signed and ratified by the EU and the individual state.

SAEEEC - State Agency of Ukraine for Energy Efficiency and Energy Conservation

RTA - Resident Twinning Adviser: a civil servant from a Member State administration who works in the BC on a full-time basis for at least one year in the framework of a Twinning project

SIGMA - SIGMA is a joint initiative of the OECD and the EU, principally financed by the European Union. SIGMA supports European Union candidates, potential candidates and European Neighbourhood Policy partners in their public administration reforms.

STE - Short-term MS expert participating in twinning activities

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Table of contents

1. Basic Information 6

1.1 Programme 6

1.2 Twinning number 6

1.3 Title 6

1.4 Sector 6

1.5 Beneficiary country 6

2. Objectives 6

2.1 Overall Objective 6

2.2 Project purpose 6

2.3 Contribution to National Development Plan/Cooperation agreement/Association Agreement/Action Plan

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3. Description 9

3.1 Background and justification 9

3.2 Linked activities (other international and national initiatives) 10

3.3 Results 12

3.4 Project precondition implementation and project coordination 17

3.5 Activities 20

3.6 Means/ Input from the MS Partner Administration 31

3.6.1 Profile and task of the Project Leader 31

3.6.2 Profile and task of the RTA 32

3.6.3 Profile and tasks of the short-term experts 33

3.7 Reporting and monitoring 34

4. Institutional Framework 34

5. Budget 36

6. Implementation Arrangements 37

6.1 Implementation Agency responsible for tendering, contracting and accounting 37

6.2 Main counterpart in the BC 37

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6.3 Contracts 39

7. Implementation Schedule (indicative) 39

7.1 Launching of the call for proposals (Date) 39

7.2 Start of project activities (Date) 39

7.3 Project completion (Date) 39

7.4 Duration of the execution period (number of month) 39

8. Sustainability 40

9. Crosscutting issues 40

9.1 Equal opportunity 40

9.2 Environment 40

10. Conditionality and sequencing 40

Annexes to Project Fiche

1. Tentative Project Implementation Scheme 43

2. Logical framework matrix in standard format 45

3. List of Relevant Laws and Regulations 54

4. The principle structure of the SAEEEC 56

5. Detailed Implementation Chart 57

6. Non-investment Activity Matrix on Energy Efficiency in Ukraine 63

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1. BASIC INFORMATION

1.1 Programme: European Neighbourhood and Partnership Instrument

1.2 Twinning Number: UA10/ENP-PCA/EY/29

1.3 Title: “ Improvement of the Policy Framework in the Sphere of Energy Efficiency and its Approximation to the Requirements of the EU Legislation”

1.4 Sector: Energy / Energy efficiency

1.5 Beneficiary country: Ukraine

2. OBJECTIVES

2.1 Overall objective

The overall objective of this project is the establishment of an operational system of effective legislation and policy in the sphere of energy efficiency aligned to the requirements of EU legislation, which will primarily facilitate the creation of a self-enabling environment for the overall reduction of energy consumption and consumption of the primary energy resources.

2.2 Project purpose

The project aims to harmonize selected national legislation in the field of energy efficiency with the relevant EU Acquis / standards and to prepare the basis for its implementation. Alongside legislation, the project aims to strengthen the tools and mechanisms based on best-EU practice in order to maximize the impact of the new legislative framework. Such tools are: increasing the use of incentive schemes boosting energy efficiency, energy audits, introducing energy management practices and partly awareness-raising on energy efficiency, efficient monitoring of energy efficiency and application of the energy efficiency standards on energy-efficient equipment.

2.3 Contribution to the National Development Plan, PCA (Partnership and Co-operation Agreement) and ENP (European Neighbourhood Policy), EU-Ukraine Association Agenda and EU-Ukraine Memorandum of Understanding on Energy Cooperation

The Partnership and Cooperation Agreement

The Partnership and Cooperation Agreement (PCA)1 between the European Union and Ukraine, signed on 16 June 1994 and entered into force on 1 March 1998, constitutes the

1 http://trade.ec.europa.eu/doclib/docs/2003/october/tradoc_111612.pdf

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legal base of the EU-Ukraine relations and establishes cooperation on a wide range of political, trade, economic and humanitarian issues.

The project will support the implementation of the chapter “Energy” of the PCA, which constitutes the basis for EU-Ukraine co-operation in this sector. Particular attention will be placed on energy consumption, in order to prevent or minimize the environmental damage resulting from these activities, on formulation of energy policy, improvement in management and regulation of the energy sector in line with a market economy, promotion of energy saving and energy effectiveness and improvement of energy technologies in supply and end use.

The European Neighbourhood Policy

The European Neighbourhood Policy (ENP)2 was developed in 2004, with the objective of building a deeper relationship with its neighbours to the East and South, supporting their reform processes.

The overall goal of ENP is to foster the political and economic reform process, promote closer economic integration, legal and technical approximation and sustainable development.Ukraine is one of the priority countries of the ENP. This twinning project will also help to fulfil the priorities of the ENP and then particularly in strengthening democracy and governance.

The European Neighbourhood Policy in Ukraine and the Association Agreement

The core element of the European Neighbourhood Policy is the bilateral ENP Action Plans agreed between the EU and each partner. These set out an agenda of political and economic reforms with short and medium-term priorities. The Joint European Union and Ukraine Action Plan was adopted in 2004.

At the EU-Ukraine Summit held on 9 September 2008 in Paris, both Parties have defined that the new agreement between the EU and Ukraine will be an Association Agreement (formerly referred to as the New Enhanced Agreement), which leaves open the way for further progressive developments in EU-Ukraine relations3. The Association Agreement renew EU-Ukraine common institutional framework, facilitate the deepening of the relations in all areas, and strengthen political association and economic integration between Ukraine and the European Union by means of reciprocal rights and obligations.

The Association Agenda4 is a new practical instrument, which aims at preparing for and facilitating the entry into force of the EU-Ukraine Association Agreement, which is currently being negotiated. The Association Agenda was adopted on 23 November 2009 at the EU-Ukraine Cooperation Council. It sets out key priorities for reforms, which Ukraine should address in the coming years in order to fully benefit from the intensified co-operation and improved market-access foreseen in the new Association Agreement.

2 http://ec.europa.eu/world/enp/policy_en.htm 3 http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/er/102633.pdf 4 Available at: http://eeas.europa.eu/ukraine/docs/2010_eu_ukraine_association_agenda_en.pdf

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The Association Agenda represents a new opportunity for strengthening the administrative capacity in Ukraine. This is, in particular, related to the sections on democracy, rule of law, human rights and fundamental freedoms that emphasize: strengthening the stability, independence and effectiveness of institutions guaranteeing democracy and the rule of law

The Association Agenda establishes a Joint Committee at senior officials’ level to review progress in implementing the reform priorities set out in the document and to up-date it periodically as appropriate. The Joint Committee reports regularly to the EU-Ukraine Cooperation Council. During its first meeting on 26 January 2010, the Joint Committee approved the List of the EU Ukraine Association Agenda priorities for 20105.

In order to implement policy priorities defined by ENP Action Plans / Association Agenda a dedicated financial instrument - European Neighbourhood Policy Instrument (ENPI) – has been set by the European Commission. The indicative financial envelope for Ukraine under the National Indicative Programme for the period 2011-20136 is € 470 million.

The programme finances the implementation of three priorities: good governance and the rule of law; facilitation of the entry into force of the EU-Ukraine Association Agreement (including a deep and comprehensive Free Trade Area); sustainable development.

The EU has committed € 70 million to assist Ukraine in its declared goal of utilizing the country’s significant energy efficiency potential. The corresponding Financing Agreement, signed in December 2009, includes the allocation of € 63 million towards the implementation of a Sector Policy Support Programme on energy efficiency and € 7 million of accompanying assistance.

Specific contribution to the EU – Ukraine Action Plan and National Indicative Programme

The Joint European Union and Ukraine Action Plan foresees cooperation in the specific sectors, including transport, energy and environment, where one of key areas is related with the Energy policy convergence, especially in the field of energy efficiency and the use of renewable energy sources (Ref. 2.5 – Energy [56]). One of the priority measures are linked with the enhancement of energy efficiency and the use of renewable energy sources, including reinforcing the relevant institutions. Energy conservation is also considered as a priority area.

The National Indicative Programme for Ukraine covering the period 2011-2013 also envisages a series of actions to be implemented in the field of Energy, Environment and Climate Change and Transport (Ref. 4.3.1 Sub-priority 3.1 [a] Energy). One of the key objectives of the programme is linked with the further support of the integration of Ukraine's energy market into the European market and the strengthening of cooperation in the area of energy efficiency and renewable energy sources, in accordance with the EU-Ukraine Association Agenda and the EU-Ukraine MoU on Energy Cooperation, as well as the Roadmap of the EU-Ukraine Working Group on Energy Efficiency, Renewable Energy and Measures to tackle Climate Change signed in March 2008.

5 Available at: http://eeas.europa.eu/ukraine/docs/2010_association_agenda_priorities_en.pdf 6 Available at: http://ec.europa.eu/world/enp/pdf/country/2011_enpi_nip_ukraine_en.pdf

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One of the expected results of implemented actions is the strengthening of the legal and regulatory framework for the energy efficiency and renewable energy sector in Ukraine and it’s harmonization with the EU practice and Acquis, e.g. (i) new improved laws and regulations in the field of energy efficiency and renewable energy to be approved and implemented; (ii) indicators of energy efficiency, based on national energy statistics compiled according to international standards; (iii) viable support schemes to be put in place for promoting the use of renewable energy sources; (iv) improvement of energy efficiency in industrial, energy and agricultural sectors; (v) increase of the share of renewable energy sources in Ukraine's energy mix; (vi) programmes for the facilitation of new technologies imports to be developed; etc.

Energy Community

EU – Ukraine cooperation is also envisaged in the context of Ukraine’s signature of the Energy Community Treaty. By joining the Energy Community, Ukraine undertakes to implement certain provisions of the EU Acquis communautaire concerning electricity, gas, environment, competitiveness, renewable energy sources and energy efficiency into its national legislation. Regarding the latter one, special attention will be given to the activities in the field of (i) energy end-use efficiency and energy services; (ii) the energy performance of buildings and (iii) labelling of household appliances.

3. Description

3.1. Background and justification

The total population of Ukraine is around 46 million inhabitants. The country currently imports 50% of its total primary energy consumption (71% of natural gas consumption and 77 % of oil and oil products consumption). The year 2005 saw the first significant increase in prices for imported energy sources. On that year, import prices for natural gas rose by 50%. From then onwards, import prices on energy resources have been converging towards international prices. This rapid growth of energy prices served as a catalyst towards a consensus among Ukraine’s main political forces as to the necessity to reduce energy intensity and to diversify the sources of energy imports.

The energy intensity of Ukraine’s GDP is 2 - 2,5 times higher compared to the world leading countries and according to the data of the International Energy Agency and state statistical organizations, equals 0.5 kg of oil equivalent per US$. Taking into consideration the actual purchasing power, that is 2.6 times higher than the average energy intensity of the GDP of developed countries.

Currently, the prevalence of fossil fuels, mostly imported, on the national energy balance, negatively affects Ukraine’s security of energy supply, economic strength and environmental protection.

Thus, improving energy efficiency, energy saving, optimizing the energy balance structure by increasing the share of indigenous and renewable energy is one of the priorities of the

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state policy. Ukraine has defined its strategic priorities in energy efficiency and renewable energy and has also set specific target indicators to be reached in this area.

Currently, the main regulatory act in respect of energy efficiency is the Law of Ukraine “On Energy Saving” from 1994. This Law is of a declarative nature and the impact of the limited policy tools it provides has been exhausted. Moreover interactions and linkages between different pieces of legislation in the areas of environmental protection, energy, energy saving and energy efficiency are weak and sometimes incompatible. Thus, there is a need to improve the legislation in the field of energy efficiency. Moreover the energy efficiency legislation has to be compliant with the selected EU Acquis.

The limited impact of state policy in energy efficiency over the past years has also revealed the need to revise policy implementation tools that have been envisaged in the State Target Economic Programme of Energy Efficiency for 2010 – 2015.

Ukraine’s mid-term priorities as set out in the State Target Economic Programme of Energy Efficiency for 2010 – 2015 focus on the modernization of the energy-sector infrastructure, seeking to improve energy efficiency and reduce energy losses as well as increase the share of renewable and local energy in the national energy balance. Based on EU experience, more attention should be paid to energy efficiency of end-users, in particular in the residential and communal services sector. It is also necessary to define non-budgetary incentive mechanisms in this area.

Given that the overall objectives of Ukraine, such as the reduction in energy intensity of the national economy and the increase of the share of renewable energy in the national fuel and energy balance, are intended to match the «20-20-20» targets of the EU energy policy, the goals, instruments and methods of Ukraine’s energy policy should be revised, so that they comply with the existing and forthcoming EU programmes, while taking into account EU experience for their implementation.

3.2 Linked activities from other donors and international financial institutions

During the recent years the cooperation with the international community has increased. Recently, in the framework of the EU-Ukraine Memorandum on Enhanced Energy Cooperation, a roadmap for energy efficiency has been signed.

Ukraine also cooperates with EBRD in the latter’s project sovereign loan for the operation of Ukraine’s first energy service company “UkrESCO”, as well as in the development of the regulatory framework necessary to unlock the potential for the introduction in Ukraine of alternative and renewable energy sources.

The Beneficiary Institution has signed a number of cooperation agreements with similar agencies in other countries (French ADEME is an example) as well as bilateral donors (such as SIDA, the Swedish International Development Agency).

Notwithstanding the above, there is no formal platform for government and donor coordination on energy efficiency to-date.

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Ukraine’s high energy-intensity and its potential to achieve substantial improvements in energy efficiency are known facts to many international financial organisations as well as multilateral and bilateral donors. For that very reason, there is a long list of foreign funded activities in Ukraine related to energy efficiency:

- EBRD provides financing for energy efficiency in industrial projects, working capital for the operation of UkrESCO as well as on-lending credit facilities to local banks to address energy efficiency in the SME sector.

- The International Financial Corporation is also financing energy efficiency in large industrial projects and is in the process of preparing on-line credit lines for the SME and the residential housing sectors.

- The European Commission is engaged in the joint implementation of a roadmap on energy efficiency.

- In addition to SIDA, other bilateral donors are working in the area of energy efficiency at government level, with local authorities and non-state actors. Germany’s KfW, the EU technical assistance to municipalities and USAid are examples of on-going activities.

A number of donors and IFIs are preparing or implementing specific activities in support of SAEEEC, and specifically:

- With assistance from the Swedish International Development Agency (SIDA), SAEEEC is participating in a number of visits to the Swedish Energy Efficiency Agency to study the experience of their Swedish counterparts in the establishment of regional energy efficiency offices as opposed to operating under a single central agency;

- The NL Agency of the Dutch Ministry of Economic Affairs is implementing a project to assist SAEEEC in the development of a communications strategy by strengthening the skills of SAEEEC Press and Communication department.

- SAEEEC and the Austrian Energy Agency (AEA) have signed a memorandum of understanding on energy efficiency and renewable energy sources. Specifically, the agencies agreed to open educational centers for training managers and experts in the field of energy conservation and energy efficiency. In addition, the parties agreed to cooperate in improving municipal heating systems and housing utilities through the introduction of new technologies and equipment, in particular with the use of bioenergy and cogeneration technologies.

- The International Finance Corporation (IFC) of the IBRD has signed an agreement with SAEEEC in order to: 1) develop and implement a Communication strategy for Ukraine’s agribusiness sector (including food production) was selected as pilot sector, and 2) build capacity of SAEEEC staff to execute this communication strategy.

The lion-share of the EU financial assistance is provided via the Sector Policy Support Programme signed by the EU and Ukraine in December 2009. The SPSP (“Support to the

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implementation of Ukraine's Energy strategy in the area of energy efficiency and renewable sources of energy”) aims at supporting Ukraine in taking decisive steps towards energy efficiency and the assessment of use of renewable energy sources. The main component of the support programme is the provision of untargeted budget support to the amount of EUR 63 million over three budgetary years against the achievement of a set of pre-agreed indicators covering: policy and legislative frameworks, public financial management, specific measures to increase EE and policy outcomes.

As part of the complementary technical assistance in the framework of the SPSP, a TA project” Support to the State Agency of Ukraine for Energy Efficiency and Conservation (SAEEEC)” is being finalised. The purposes of this project, due to be launched in the second half of 2011 with a 3-year duration and a 3 MEUR budget are:

- To strengthen SAEEEC capacity for the design and implementation of national policies in respect of energy efficiency and renewable energy sources;

- To assist in the implementation of the Sector Policy Support Programme funded by the EU.

This three-prongue approach (budget support, technical assistance and twinning) shall provide the thrust to address the design and articulation of the GoU objective to increase the country’s overall energy sustainability.

The full information regarding the international donor activities in the energy efficiency field (non-investment part) is presented in Annex 6.

3.3 Results

The components of this twining project were carefully chosen to be logically related to each other and facilitate achieving the main purpose of the project: to harmonize selected national legislation in the field of energy efficiency with the relevant EU Acquis and to lay the groundwork for its implementation and future development. Alongside legislation, the project aims to strengthen the tools and mechanisms, based on best EU practice, necessary to maximize the impact of this progressive legislative framework. Such tools are: creating a market in energy efficiency services, increasing the use of energy audits, introducing progressive energy efficiency standards on energy-using equipment and comprehensive monitoring of energy efficiency.

The twinning project consists of three main components on the selected spheres of cooperation (Components 1, 2, 3). The sector-related components should contribute to the following mandatory results, to be achieved by the end of the project:

(i) Adaptation of the Ukrainian legislation to the required7 energy efficiency EU Acquis and the review of the selected primary and secondary legislation in the

7 The required energy efficiency EU Acquis is presented below, but is not limited to:

• Directive 2006/32/EC on energy end-use efficiency and energy services • Directive 2002/91/EC on the energy performance of buildings • Directive 2010/30/EU on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products

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field of energy efficiency, including the analysis, preparation of the legislation consolidation plan and its drafting;

(ii) Creation of a basis for an EU compliant system of standards in the field of the energy efficiency;

(iii) Strengthening of the Beneficiary Country capacity to manage developments in the field of energy efficiency.

The order in which the components are set out in the following chapters does not indicate the order of their implementation. It is up to the EU MS Institution to propose the sequence of activities in its proposal.

Component 1. Adaptation of the Ukrainian legislation to the required energy efficiency EU Acquis and the review of selected primary and secondary legislation in the field of energy efficiency, including the analysis, preparation of the legislation consolidation plan and its drafting

Subcomponent 1-1. Review of primary legislation

Intermediate Results Indicators of achievement

Primary legislation concerning energy efficiency reviewed. This will include, but not be limited to:

- the Law on Energy Efficiency;

- the associated legislation on the energy efficiency in Buildings.

Comparative analysis of the primary legislation in force in Ukraine at the time of the project implementation with the following directives:

- Directive 2006/32/EC on energy end-use efficiency and energy services;

- Directive 2010/31/EU of 19 May 2010 on the energy performance of buildings (recast of Directive 2002/91/EC);

- Directive 2010/30/EU on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products.

- Directive 125/2009/EC establishing a framework for the setting of ecodesign requirements

Primary legislation in the field of energy

- Revision of the energy efficiency law and the legislation on the energy efficiency of buildings

- Relevant revisions prepared and submitted for the official approval process

- Recommendations for the improvement of the primary legislation and approximation of the three EU Directives presented

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efficiency consolidated and simplified.

Subcomponent 1-2. Incentive schemes for promoting energy efficiency

Subcomponent 1-3. Energy audits and energy management


Energy audits implementation scheme and associated legislation reviewed

- Existing legislation for the implementation of the energy audits reviewed, relevant amendments proposed and submitted for the official approval process

- Regulation on the energy audits reviewed, relevant amendments proposed and submitted for the official approval process

CEN standards on energy management standards transposed into Ukrainian technical regulations

- EU-based standards on energy management are implemented

Legal and regulatory framework for the provision of energy demand-side management developed

- Existing secondary legislation for the implementation of demand-side management reviewed, relevant amendments proposed and submitted for the official approval process


Existing incentives schemes analysed.

EU instruments for promoting energy efficiency presented

System on the issuing and operation of “white certificates” developed

Voluntary agreements introduced

Specific proposals for the provision of incentives towards the implementation of energy efficiency projects developed

Relevant legal framework for implementation of incentive schemes drafted and submitted for adoption

- Report on the analysis of existing incentive schemes

- Relevant secondary legislation reviewed and submitted for the official approval

- Stakeholders adequately informed on the features of incentive mechanisms

- Packages for the implementation of white certificates and voluntary agreements presented and submitted for the official approval process

- Additional incentive instruments for increasing energy efficiency identified as suitable for their introduction

- Associated draft legislation prepared and submitted for the official approval process

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- Regulation on the demand-side management of energy reviewed, amendments proposed and submitted for the official approval process

Subcomponent 1-4. Energy performance of buildings


Requirements for the energy performance of buildings introduced

Tools and mechanisms for increasing and monitoring the energy performance of buildings identified

- Secondary legislation for the implementation of a system of requirements for the energy performance of buildings scheme proposed (if required) and submitted for the official approval process

- Regulation on the energy performance of buildings scheme reviewed and/or prepared

Subcomponent 1-5. Development of a National Energy Efficiency Action Plan (NEEAP) and its reporting


NEEAP for the period until 2016 prepared

Progress Reports for the Energy Community prepared

- NEEAP prepared, including the identification of financial resources

- Progress reports during the timeline of the project on NEEAP implementation prepared and timely submitted

Component 2 Creation of EU compliant standards for energy-using products

Subcomponent 2-1. Transposition of existing CEN/CENELEC measurement standards regarding the ecodesign of energy-using products


Already existing CEN or CENELEC standards regarding the compliance with ecodesign requirements of those energy-using equipment / products listed in Ukraine’s plan for development of energy efficiency standards transposed into Ukrainian technical regulations

- Technical regulations for energy-using equipment planned for standardisation by SAEEEC adopted on the basis of existing EU standards

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Subcomponent 2-2. Introduction to eco-design


Introduction to standards for energy-using equipment in the framework of eco-design requirements for energy-using products (EU Directive 125/2009/EC) developed Eco-design for energy-using equipment introduced

- Introduction of the Beneficiary institution to the Ecodesign Regulatory Committee setting ecodesign requirements for energy-using products

- Ukraine joins the Regulatory Committee as an observer.

Subcomponent 2-3. Labelling of household appliances


System of technical regulations in the field of energy efficiency through the introduction of compulsory labelling the energy consumption of household appliances in accordance with EU practices reviewed and improved

- Labelling requirements on the energy consumption of household appliances introduced

Component 3 Benchmarking of the SAEEEC institutional set-up with its EU peers


SAEEEC institutional set-up benchmarked with its EU peers. Including explanation of applicable functions for the SAEEEC The EU related institutional structures applicable to the Beneficiary reviewed Institutional framework reviewed. The proposed structure and required personnel skills presented The Beneficiary’s Capacity Building Plan is updated (if appropriate)

- Presentation of relevant EU institutions and visits to them

- Identification of the possible functions of the Beneficiary

- Institutional analysis and new structure proposed

- TNA report

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3.4. Project precondition implementation and project coordination Apart of the sector-related components, the project also contains some preconditions and required project coordination

0-1. Project steering and reporting


Quarterly Steering Committee meetings are organized and attended as minimum by both Project leaders (MS & BC) and RTA/RTA counterpart.

Interim quarterly and final project reports are prepared and co-signed by the MS and BC Project leaders

- Minutes of the steering committee meetings

- Interim quarterly reports

- Final report

0-2. Project visibility


General opening meeting followed by the introductory workshop organized

Detailed project scope, schedule, organisational matters and twinning related procedural aspects for the key staff of the Beneficiary institution are presented at the introductory workshop

Adequate visibility measures implemented

General closing meeting for the dissemination of final twining project results organized

- Agenda for the meetings

- Press conference material

- Project news letters, articles, leaflets, promotional material, etc.

- Training workshop agenda

- Workshop material

0-3. Coordination with other related projects


Adequate coordination with other EU funded projects in the field of energy efficiency ensured

- Agenda for the meetings

- Coherent list of activities and trainings implemented by other EU funded projects

0-4. General translation and interpretation


Translation and interpretation for general project related activities provided

- Full time interpreter employment contract

- Relevant interpretation and translation

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services are provided and documented

The above mentioned project precondition implementation and project coordination should be implemented by means of below listed actions:

0-1. Project steering and reporting

Action 0-1-1. Project reporting

Proper project reporting is essential to ensure effective follow-up of project implementation, to properly evaluate the results and ensure high quality both for the current and future projects. Project reports should focus on the twinning project but also place the content in the context of related activities within the sector.

The MS Project Leader must draw up Interim Quarterly Reports and a Final Report and he/she will be responsible for submitting them. The BC Project Leader will be fully involved in this process and should be given adequate time to put forward comments. S/he must also co-sign each report before it is officially submitted.

Action 0-1-2. Establishment of a Steering Committee

A Steering Committee will be established to oversee the implementation of this Twinning Project.

Membership of the Steering Committee shall be opened to representatives of the Beneficiary institution as well as representatives of the European Commission (EU Delegation). On behalf of the MS institution(s), the participation of the MS Project Leader is mandatory. Participation in the Steering Committee shall be opened to other institutions as deemed appropriate throughout the course of project implementation.

Action 0-1-3. Steering Committee meetings

In conjunction with the Activity 1, all draft Interim Quarterly Reports and Final Report should be discussed at the quarterly project Steering Committee meetings. The Steering Committee meetings should also briefly cover other linked activities implemented via technical assistance components, which are under implementation at the Beneficiary institution.

The minutes of all steering committee meetings should be prepared and submitted together with the signed Interim Quarterly Reports and Final Report.

0-2. Project visibility

Action 0-2-1. Opening meeting

At the very beginning of this project, the general opening meeting should be organized. All relevant stakeholders and media representatives should be invited. A press conference could be organized in order to increase the dissemination of the information to the wider audience.

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Upon request, the press-release could be prepared and issued covering the main aims of the project and providing information for wider society on the benefits it could potentially get after the implementation energy efficiency related measures envisaged in this project.

Action 0-2-2. Twinning workshop

The Beneficiary institution throughout the implementation of the twinning project will have certain responsibilities and duties described in the Twinning Manual. Therefore, the related staff of the Beneficiary institution should learn and understand how they can benefit most form the twinning project. This should be achieved by organising one workshop on the detailed project scope, schedule, organisational matters and twinning related procedural aspects.

Action 0-2-3. Visibility measures

Selected visibility measures should be implemented. The MS Project Leader will make the final decision on what measures should be implemented. The Visibility Guidelines, prepared by the European Commission and the allocated budget for the implementation of the visibility measures should be respected.

Action 0-2-4. Closing meeting

At the very end of project implementation, the closing meeting should be organized. All relevant stakeholders and media representatives should be invited. The press conference could be organized in order to increase the dissemination of the information to the wider audience.

Upon request the press-release could be issued covering the main achievements of the project and providing information for wider society on the benefits it got or will potentially get in the nearest future.

0-3. Coordination with other related projects

Action 0-3-1. Coordination activities

Selected number of joint meetings with other international-funded projects in the field of energy efficiency should be organized. The number and the frequency of those meetings should stay at the discretion of the MS Project Leader and/or RTA.

The minutes of the meetings for all meetings should be prepared. Also the relevant information included into the Interim Quarterly Reports and Final Report.

0-4. General translation and interpretation

Action 0-4-1. Translation and interpretation

Translation and interpretation is not a separate activity in its nature. However, it is placed as separate activity purely for the budgeting purposes.

Recognizing the importance of communication between Member State and Beneficiary institution experts and putting effort to minimize expenses associated with translation and interpretation, a full time interpreter (additionally to Resident Twinning Adviser assistant)

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will be hired. (S)he will provide necessary translation and interpretation services. However, the specific translation or simultaneous interpretation services for the main seminars could be purchased externally.

3.5. Activities

Component 1. Adaptation of the Ukrainian legislation to the required energy efficiency EU Acquis and the review of selected primary and secondary legislation in the field of energy efficiency, including the analysis, preparation of the legislation consolidation plan and its drafting Subcomponent 1-1. Review of primary legislation

Activity 1-1-1. Review of the Law on Energy Efficiency

The review of the draft or already adopted law, as appropriate, on Energy Efficiency is required especially in the context of setting the framework for the successful implementation of actions related to: the energy end-use efficiency and energy services, the energy performance of buildings, labelling of household appliances and the introduction of the eco-design requirements. The revised law should be discussed in detail, approved internally by SAEEEC and submitted for the official approval process.

Activity 1-1-2. Review of the primary legislation on the energy performance of buildings

In seeking to implement Directive 2010/31/EU, it is necessary to review the legislation currently in force or under preparation in respect of the energy performance of buildings. This should enable the identification of the areas/sectors already covered and the specific criteria and mandatory parameters for both new and existing buildings.

The revised and/or prepared draft legislation should be discussed in detail, approved internally by SAEEEC and submitted for the official approval process.

Activity 1-1-3. Review of the Energy Efficiency law associated primary legislation

There is a very weak interaction between different acts in the spheres of environment protection, energy, energy saving and energy efficiency. Often the energy legislation norms are inconsistent. Therefore the analysis of the associated primary legislation should be performed, main shortcomings identified and preliminary recommendations proposed, preferably taking into consideration possible consolidation of the said legislation.

Activity 1-1-4. Comparative analysis of Ukraine’s primary legislation and Directives 2006/32, 2010/31 and 2010/30

This task is crucial to identify the elements set out in the three a.m. Directives which are “missing” from Ukraine’s primary legislation. As part of the comparative analysis, special attention will be paid to the definition of goal, targets, measures and monitoring principles as tools since these are, for historical reasons, likely to differ substantially in the Ukrainian legislation.


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In view of the significance of the mechanisms of white certificates and voluntary agreements, activities under these two areas are described separately.

Activity 1-2-1. Assessment mission and gap-analysis

To complete the assessment and analysis of the energy efficiency incentive schemes currently available in Ukraine. This task should take into account the findings of the review of primary legislation carried out earlier and include the review of existing secondary legislation

Activity 1-2-2. Round table discussion on EU incentive mechanisms for promoting energy efficiency

One workshop/seminar on EU instruments for promoting energy efficiency should be organized. Before the event the MS short-term expert(s) together with the beneficiary institution representative should identity the target participants. The format, topics and agenda of these events should be identified and agreed between the MS and BC Project Leaders.

Activity 1-2-3. Study visit on incentive schemes in the field of energy efficiency

One study visit on incentive schemes in the field of energy efficiency should be organized. The timing of the study visit should be discussed in advanced with the MS institutions concerned. Before the study visit the MS short-term expert together with the beneficiary institution representative should identity the main participants. The selected group principally should consist of both decision-makers and staff to be potentially involved in the design and implementation of the incentive schemes within the Beneficiary institution.

Activity 1-2-4. Development of incentive schemes for implementation in Ukraine

To develop selected proposals for the boosting of use of market tools and initiatives for the provision of state financial assistance for energy efficiency projects. Special attention should be paid to the requirement of the EU Directive to introduce energy efficiency criteria in public procurement.

Activity 1-2-5. Preparation of the relevant legal and regulatory framework with regard to funding energy efficiency

The EU experts should assist in preparation of the relevant draft legal and regulatory framework that allows the implementation of selected financial incentive schemes and submit it for the approval process. It should help to facilitate the implementation of the selected financial incentive scheme, which is not designed for the self-driving implementation.

White certificates


Assessment and analysis of the existing Ukrainian legislation and other related regulations related to the feasibility of introducing white certificates for improving energy efficiency by end-users.

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The EU expert will focus on the gap-analysis of secondary legislation enabling the implementation of white certificates and will provide initial recommendations on the subject. (S)he will indicate how to improve and/or what secondary legislation is required.

Activity 1-2-7. Seminar on the implementation of the white certificates

A Seminar on the implementation and benefits of the introduction of white certificates should be organized. Before the seminar the MS short-term together with the beneficiary institution representative should identify the main audience for this seminar. The target groups should consist of the stakeholders involved in the process or being affected by white certificates.

Activity 1-2-8. Study visit

A study visit should be organized for the relevant staff of the Beneficiary institution to selected MS institution(s) in order better to understand the rationale, benefits and operation of white certificates. The timing of the study visit should be coordinated with the MS institutions involved.

Activity 1-2-9. Road-map for the implementation of white certificates

A detailed road-map detailing the adoption of the draft secondary legislation and the necessary institutional set-up leading to the introduction and implementation of white certificates is prepared.

Activity 1-2-10. Review / preparation of the secondary legislation for establishment and operation of white certificates

The draft secondary legislation empowering the implementation of white certificates is drafted together with the Beneficiary institution staff, endorsed by SAEEEC and submitted for the official approval process.

Voluntary agreements


Assessment and analysis of the current Ukrainian legislation and other related regulations for the implementation of the voluntary agreements in the field of energy efficiency.

The EU expert will concentrate on the gap-analysis of secondary legislation empowering the implementation of the voluntary agreements and will provide initial recommendations on the subject. (S)he will indicate how to improve or what secondary legislation is required.

Activity 1-2-12. Seminar on the implementation of the voluntary agreements

Seminar on the implementation and benefits of the introduction of the voluntary agreements should be organized. Before the seminar the MS short-term together with the Beneficiary institution representative should identify the audience for this seminar. The target groups should consist of the stakeholders involved in the process of designing, implementing and operating voluntary agreements and those with a potential interest in signing voluntary agreements.


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One study visit should be organized for the relevant staff of the Beneficiary to the selected MS institution(s) in order to expand their understanding of the rationale, benefits and operation of voluntary agreements. The timing of the study visit should be coordinated with the MS institutions involved. This study visit can potentially be linked with other study visits undertaken as part of this component.

Activity 1-2-14. Road-map for the implementation of the voluntary agreements

The detailed road-map for the introduction of the secondary legislation, the establishment of the relevant institutional set-up for the implementation of the voluntary agreements is prepared.

Activity 1-2-15. Review / preparation of the secondary legislation facilitating voluntary agreements

The draft secondary legislation allowing for the implementation of voluntary agreements is jointly drafted together with the staff of the Beneficiary institution, endorsed by SAEEEC and submitted for the official approval process.


Energy audits


To assessment and analyse the existing Ukrainian legislation and regulations relevant for the implementation of energy audits. This task should take into account the findings of the review of primary legislation carried out as part of subcomponent 1.1. Specific attention will be paid to extending the use of energy audits amongst state budget-funded institutions.

The EU expert will focus the gap-analysis on the following three areas:

- Secondary legislation regulating the implementation of energy audits and will provide initial recommendations on the subject. (S)he will indicate how to improve or what secondary legislation is required.

- The existing capacities in Ukraine for the preparation of energy auditors and the attestation of both training institutions providing energy auditing courses and the energy auditing companies and auditors. This part of the gap analysis should rely on existing practices in these areas in EU Member States.

- The training needs of the staff of the Beneficiary institution working in the area of energy audits should be identified and a training map (topics, duration, etc.) and the list of trainees prepared. This document should also identify the main stakeholders to be invited to a seminar on energy auditing.

Activity 1-3-2. Seminar on the implementation of the energy audits

A seminar to raise awareness on the benefits and operational details of energy audits should be organized. The seminar should also cover the attestation of the energy auditing companies and energy auditors. Prior to the seminar, the MS short-term together with the Beneficiary institution representative should identify the audience for this seminar. The target groups should consist of potential implementers and users of energy audits..

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One brief study visit should be organized for the relevant staff of the Beneficiary institution to the selected MS institution(s) in order to deepen their understanding of the benefits and regulation of energy audits. The timing of the study visit should be coordinated with the MS institutions involved. The study visit potentially can be linked with other linked study visits, e.g. energy management.

Activity 1-3-4. Energy audit methodologies

The EU experts will prepare a pre-set number of widely-used methodologies, which can be used for purpose of energy management in the pre-identified key areas.

Activity 1-3-5. Attestation of energy auditors

The EU experts are required to analyse the necessity and feasibility of reviewing the existing attestation system for energy auditors of state owned or budget-funded institutions. The proposal should comprise preparation of draft description, questioners, procedures, methodologies, etc.

Activity 1-3-6. Update of the secondary legislation regulating energy audits

Based upon activity 1-3-1 and EU best practice, the EU experts and the staff of the Beneficiary institutions will draft the proposed amendments to secondary legislation regulating energy audits. Proposals should focus specifically on the attestation of the energy auditing companies and their energy auditors and the standard procedures for carrying out and reporting on the implementation of energy audits. The proposed amendment(s) should be in its final version and submitted for its endorsement.

Activity 1-3-7. Institutional framework set-up

Based upon the findings of activity 1-3-1 and 1-3-4, any changes to the existing institutional framework within the Beneficiary institution will be proposed and discussed. This may include issues related to staffing levels or relations with non-state energy auditors. The proposed changes should look into expanding energy audits among budgetary institutions.

Activity 1-3-8. Road-map for the implementation of the energy audits

A detailed road-map will be prepared outlining the schedule and steps leading to the adoption of the revised secondary legislation and the implementation of identified institutional set-up.

Energy management


Assessment and analysis of the Ukrainian secondary legislation in-force affecting energy management by end-users, specifically SMEs and residential end-users.

The EU expert will concentrate on the gap-analysis of secondary legislation facilitating energy management by end-users as well as technical regulations where applicable and will

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provide initial recommendations on the subject. (S)he will indicate how to improve or what secondary legislation is required. Also, the training needs assessment of the Beneficiary staff working in the area of the energy management should be prepared (topics, duration, etc.). The document should also identify the main stakeholders to be invited to a seminar on the implementation of the energy management.

Activity 1-3-10. Seminar on implementing energy management

At least one awareness-raising seminar on the implementation and benefits of introducing energy management by end-users should be organized. Prior to the seminar, the MS short-term together with the Beneficiary institution representative should identify the audience for this seminar. The target groups should include industrial and commercial end-users as well as residential ones.

The seminar will include a presentation of EU-based (CEN) standards on energy management.

Activity 1-3-11. Review of the secondary legislation on the implementation of energy management

The legislation for enabling the large-scale introducing of energy management by end-users should be revised/drafted. If and where appropriate, the same exercise should be carried out in respect of the existing technical regulations of energy management. The drafts/revised legislation should be in its final version, endorsed by SAEEEC and submitted for the official approval process.

This review will include the transposition of CEN standards on energy management into Ukrainian secondary legislation and/or technical regulations. This also should cover, but not limited to: CEN/CLC/TR 16103:2010; EN 15900:2010; CWA 15693:2007; EN 16001:2009 and EN 50001.

Activity 1-3-12 Energy management methodologies

The EU experts will prepare a pre-set number of widely-used methodologies, which can be used for purpose of energy management in the pre-identified key areas.

Activity 1-3-13. System certification Attestation of energy managers

The EU experts are required to analyse the necessity and feasibility of setting up a certification system for energy managers of state owned or budget-funded institutions. The proposal should comprise preparation of draft description, questioners, procedures, methodologies, etc.

Sub-component 1.4- Energy performance of buildings


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Assess and analyse the existing Ukrainian legislation and regulations concerning the energy efficiency performance of buildings. This gap analysis should be carried out along two separate areas: the performance of new buildings, and that of existing ones.

Jointly with the beneficiary institution, subsequent activities will focus on the energy performance of existing buildings insofar as the current institutional set-up provides places responsibility for new buildings under the Ministry of Regional Development and Construction.

Activity 1-4-2. Seminar on the energy performance of buildings

One awareness-raising seminar on the implementation of EU Directive 2010/31/EU at national level (the experience of several MS ought to be presented) will be organized. Prior to the seminar, the MS short-term together with the Beneficiary institution representative should identify the audience for this seminar. The main stakeholders should include the operators of existing buildings, energy auditors, buildings companies and the relevant staff from the Ministry of Regional Development and Construction.


Brief study visit should be organized for the relevant staff of the Beneficiary to pre-selected MS institution(s) in order better to understand the process behind the implementation of EU Directive 2010/31/EU. The timing of the study visit should be coordinated with the MS institutions involved.

Activity 1-4-4. Review of the secondary legislation in respect of the energy performance of buildings

The existing legislation and technical regulations concerning the energy performance of buildings will be revised and the relevant amendments covering all aspects of implementing directive EU 2010/31/EU (calculation of energy performance, energy audits of buildings, energy performance certificates, incentive schemes) should be reviewed and all relevant amendments proposed. The revised regulation should be in its final version, endorsed by SAEEEC and submitted for its endorsement.

Activity 1-4-5. Certification of buildings

The EU expert(s) should assist the Beneficiary in the development of methodology for determining the energy performance of existing buildings.

Activity 1-4-6. Energy audits of building stock

The EU expert(s) should review the energy audits methodology for the building stock. The relevant improvements and amendments should be incorporated into the revised secondary legislation, which should be submitted for the official approval process.


Activity 1-5-1. Assessment mission

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The EU expert will review the action plan(s) on energy efficiency in place in Ukraine at the time of the start of the Twinning Project and any progress reports to the Energy Community, which may have been prepared. The review will include a comparative analysis of the action plan(s) and progress reports versus the NEEAPs prepared in one/several EU MS.

Activity 1-5-2. Seminar on preparation of NEEAPs and Progress Reports

One seminar on the requirements and content of NEEAPs prepared in the framework of EU Directive EU 2006/32/EC and the reporting obligations to the Energy Community will be organized. The list of attendees will be agreed upon in advance between the MS short-term together with the Beneficiary institution representative. The main stakeholders should include the Ukrainian institutions/agencies responsible for the preparation, implementation and monitoring of NEEAPs, the latter paying due attention to the preparation of progress reports.

Activity 1-5-3. Preparation of the NEEAP

While it is expected that Ukraine will have some sort of NEEAP prior to the beginning of the Twinning Project, the EU experts will assist in the process of updating it to bring it in compliance with the requirements of EU Directive 2006/32/EC. Particular attention shall be paid to the valuation and sourcing of the financial resources needed for NEEAP implementation.

The revised action plan shall be finalised to the extent that it allows for its enactment.

Activity 1-5-4. Establishing a format for progress reports on NEEAP implementation

The EU experts will assist the staff of the Beneficiary institution to draft the template for the preparation of regular progress reports to be submitted to Secretariat of the ECT as part of Ukraine’s obligations as a member of the ECT.

This task will include the preparation of a roadmap detailing the information which needs to be provided, the responsible staff or institutions for its provision and the timeline for timely provision of information and reports preparation.

Activity 1-5-5. Preparation of one progress report

This on-the-job training will consist in the EU experts assisting the Beneficiary institution in the drafting of one progress report on implementation of the NEEAP.

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Component 2 Creation of EU compliant standards for energy-using products and equipment

Subcomponent 2-1. Transposition of existing EU standards (CEN/CENELEC) on … (see previous modification of same title) energy-using products and equipment


Ukraine develops two types of energy efficiency standards: (i) standards on processes and (ii) similar voluntary standards as they are applicable in the EU on energy-using products and equipment. The experts will review the state of implementation of Ukraine’s plan for the development of energy efficiency standards and identify those which, although planned, are not yet developed in Ukraine but are already available in the EU.

Activity 2-1-2. Transposition of pre-selected CEN/CENELEC standards on the energy efficiency of energy-using products and equipment into Ukrainian technical regulations

The standards identified in the previous activity should be jointly transposed by the EU experts and the Beneficiary institution staff for their application in Ukraine. This will include their translation into Ukrainian language.


Activity 2-2-1. Round table discussion on benefits from Ukraine’s participation in the EU Regulatory Committee set up in the framework of EU Directive 125/2009/EC establishing a framework for the setting of ecodesign requirements for energy-using products.

The round table discussion should present the institutional set-up, the activities and outputs of the EU Regulatory Committee. The discussion should include the assessment of the benefits to Ukraine in joining as an observer.

Activity 2-2-2. Joining the EU Regulatory Committee

The EU experts will assist the Beneficiary institution in establishing formal communication channels with the EU Regulatory Committee > this is not possible

Activity 2-2-3. Working visits

The EU Regulatory Committee meets twice a year. Accordingly, it is envisaged that, during the implementation of this twinning project there would be, at least, 2 to 3 participations in the Committee. It is expected that the SAEEEC should put sufficient resources after the project implementation allowing adequate participation in the Committees at the regular basis.

Activity 2-2-4. Preparation the relevant documentation for the working visits

In relation to the above activities, the EU expert should assist the Beneficiary institution in all preparatory activities necessary for swift integration of Ukraine into the EU Regulatory Committee.

Activity 2-2-5. Consolidation of the schedule for developing energy efficiency standards

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In seeking to harmonize the integration of the schedules of Ukraine and the EU Regulatory Committee, the EU expert should review and to propose aligned schedule of the Beneficiary institution on the development of energy efficiency standards. This would allow maximizing the benefits received form the EU Regulatory Committee.

Sub-component 2-3. Labelling of household appliances


Assessment and analysis of the existing Ukrainian legislation and technical regulations concerning the labelling of household appliances sold in Ukraine and set out in the EU Directive 2010/30/EU and its subsequent amendments.

By the end of 2011, the Beneficiary institution plans to have available 5 technical energy efficiency regulations in Ukraine. Therefore, the EU expert should concentrate on analysis of related documentation required for the development of remaining main technical regulations (principally on air conditioning, dishwashers, irons, etc).

The gap analysis shall cover:

- to indicate which improvements or additions are required to the existing legislation and regulations;

- to identify any training needs of the staff of the Beneficiary institution working in the area of supervising the labelling of household appliances.

Activity 2-3-2. Seminar on labelling

The seminar on the binding and voluntary labelling of energy-using household appliances should be organized. Prior to the seminar, the MS short-term expert(s) together with the Beneficiary institution representative should identify the audience for this seminar. The main stakeholders should include the manufacturers and importers of household appliances covered by the EU Directive 2010/30/EU, the Ukrainian standardization body and certifying institutions.

Activity 2-3-3. Study visit on labelling

One study visit on the introduction of labelling, conformity and supervision to the relevant EU institutions should be organized. The timing of the study visit should be discussed in advanced with the MS institutions concerned. Before the study visit the MS short-term expert together with the Beneficiary institution representative should identify the main participants.

Activity 2-3-4. Preparation of selected technical regulations for labelling of household appliances

The MS will assist the Beneficiary institution in the process of adapting existing EU technical regulations to finalise the missing technical regulations on labelling of household appliances, such as: (i) IEC 62552 Household refrigerating appliances - Characteristics and test methods; (ii) IEC 60379 Methods for measuring the performance of electric storage

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water-heaters for household purposes; (iii) IEC 61121 Tumble dryers for household use - Methods for measuring the performance; (iv) IEC 60312 Vacuum cleaners for household use - Methods of measuring the performance; and (v) IEC 60705 Household microwave ovens - Methods for measuring performance. The revised regulations should be in their final version, endorsed by SAEEEC and submitted for the approval process.

Each of the prepared regulations should include a road-map (implementation timetable) for full implementation (including its publicising to manufacturers, importers and users).

Component 3 Benchmarking of the SAEEEC institutional set-up with its EU peers

Activity 3-1. Assessment mission and gap-analysis

The EU experts will carry out the assessment and analysis of the current functions and institutional set-up of the Beneficiary should be performed.

Activity 3-2. Benchmarking of the SAEEEC

On the basis of the previous activity, the experts will benchmark SAEEEC institutional set-up and legal environment with its EU peers. It should include explanation of functions and responsibilities, which could be principally applicable for the Beneficiary.

Activity 3-3. Study visit

One brief study visit should be organized for the top management of the Beneficiary to selected MS institution(s) in order better to understand the institutional and legal framework in which the EU peers of the Beneficiary operated. The timing of the study visit should be coordinated with the MS institutions involved.

Activity 3-4. Overall review of the institutional framework

To carry out a review of the institutional framework. This consolidated review should take into account all micro institutional reviews performed in other components of this project.

The review should contain a proposal on further strengthening of the Beneficiary institution in terms of responsibilities, structure, legal framework and resources. This document should be presented and discuss with the Beneficiary’s top management and several iterations may need to be prepared.

Activity 3-5. Update of the Beneficiary institution’s Capacity Building Plan

SAEEEC mid-term development is based on a Capacity Building Plan for the period 2011-2015. Based on the findings and recommendations agreed between the EU experts and SAEEEC, the former will assist the Beneficiary institution in updating its Capacity Building Plan to reflect the needs and targets identified.

3.6 Means/Inputs from the MS Partner Administration

The required MS experts must be civil/public servants of the relevant MS administration or permanent staff of its authorized mandated bodies. All experts must comply with the requirements set in the Twinning manual.

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3.6.1 Profile and tasks of the Project Leader

The MS Project leader (PL) should be a senior civil servant/high level staff member of a MS institution working in the field relevant to this project.

Role and tasks

The PL from EU MS will be responsible in collaboration with the Beneficiary Country (BC) PL for the overall steering and coordination of the project, ensuring achievement of mandatory results, good cooperation and information exchange between EU MS and the Ukrainian side as well as availability of management support and staff from EU side. The MS Project Leader is expected to devote a minimum of three days per month to the project and minimum one visit every 3 months to BC.

In addition, he/she should co-ordinate, from the Member State side, the Project Steering Committee (PSC), which will meet in Ukraine at least every three months.

Indicative profile of Project Leader (PL)

Qualification and skills

- University level education in the relevant discipline or professional qualification in Public Administration or equivalent professional experience, i.e. in the field of energy efficiency;

- Good English language skills, both spoken and written. Command of Ukrainian/Russian language would be an advantage;

- Full PC literacy;

- Strong analytical and managerial skills;

- Good inter-personal skills.

General professional experience

- Civil servant from an EU Member State administration;

- Minimum 15 years of professional experience;

- Comprehensive and practical 5 year experience in strategic management / performance management issues;

- Experienced project manager, demonstrating good record in organizational leadership, staff motivation, and communication;

- Experience in international co-operation and multilateral activities would be considered as an advantage;

- Good organizational, communication and presentation skills.

Specific professional experience

- At least 10 years experience in the field of energy efficiency, preferably in a top management position;

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- Knowledge of the EU policies and legislation in the field of energy efficiency;

- Experience in change management;

- Experience in developing, co-ordinating, and conducting one or several projects in energy efficiency would be an advantage.

3.6.2 Profile and tasks of the RTA

Role and tasks

The Resident Twinning Adviser (RTA), under the guidance of the MS Project Leader, will lead the work of the team and will work on a daily basis with the staff of the Beneficiary institution to implement the project, support and co-ordinate the activities in the BC and ensure continuity of implementation. The RTA will be responsible for day-to-day management of the project on site. (S)he will be responsible for co-ordinating all the different activities and inputs and for liaising with the RTA counterpart at the SAEEEC.

The RTA will provide 19 months input on site and will be based in an office of the SAEEEC.

Indicative profile of Resident Twinning advisor (RTA)

Qualification and skills

- University level education in the relevant discipline or professional qualification in Public Administration or equivalent professional experience, i.e. in the field of energy efficiency;

- Good English language skills, both spoken and written.

- Command of Ukrainian and/or Russian language(s) would be an advantage;

- Full PC literacy;

- Strong analytical and managerial skills;

- Good inter-personal skills.

General professional experience

- Civil Servant from an EU MS Administration;

- 10 years of professional experience;

- Experienced project manager, demonstrating good record in organizational leadership, staff motivation and communication;

- Excellent team-working skills;

- Strong analytical skills;

- Two years experience of the transition economies of the CIS would be an advantage.

Specific professional experience

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- At least 5 years experience in the field of energy efficiency, preferably in a managerial position;

- Knowledge of the EU legislation in the field of energy efficiency;

- Sound knowledge of the energy efficiency best practices applied in the EU;

- Experience in developing, co-ordinating, and conducting of the energy efficiency related project would be considered an advantage.

The RTA will be assisted in its daily work by a full time assistant and full time professional translator/interpreter if needed. They will be remunerated through the Twinning budget. Both, the assistant and the interpreter/translator will be selected and contracted shortly after the signature of the twinning contract. They should have an excellent command of English, Ukrainian and Russian, both written and oral.

3.6.3 Profile and tasks of the short-term experts

The interested Member State institution shall include in its proposal the CVs for the proposed Project Leader, RTA and the key short-term experts relevant to the specific tasks where appropriate/required. Other experts could also be included in the proposal where considered necessary.

Principally the team of Short-term experts should consist but not be limited to:

STE 1 – senior legal specialist in the area of the energy efficiency;

STE 2 – junior legal specialist understanding technical secondary legislation;

STE 3 – technical/legal expert on white certificates;

STE 4 – technical/legal expert on voluntary agreements issue;

STE 5 – technical/legal expert on energy audits;

STE 6 – technical/legal expert on labelling of household appliances;

STE 7 – technical/legal expert on end-user efficiency;

STE 8 – technical/legal expert on energy efficiency incentive schemes;

STE 9 – technical/legal expert on the energy performance of buildings;

STE 10 – technical/legal expert on and energy efficiency standards.

The mandate of the short-term experts (STE) includes the performance of the activities foreseen in this Project Fiche and/or proposed by the MS at the time of expressing its interest in participating in this project and/or expressed in the finalized twinning contract.

Indicative profile of Short-term Experts (STE):

- At least 3 years of comprehensive and practical experience in the corresponding field of expertise;

- Specific knowledge of EU policies and associated strategic documents and regulations in the area of energy efficiency;

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- Ability to analyse the different strategies and adapt these to the local environment and understand its constraints and possibilities will be considered as an advantage;

- Good organisational, communication and presentation skills;

- The experience in the training of practical issues;

- IT literacy;

- Fluency in English;

- Knowledge of Russian or Ukrainian languages would be an advantage;

- University degree or practical experience in the related field of the required expertise.

3.7 Reporting and monitoring

The MS Project Leader must draw up Interim Quarterly Reports and a Final Report and (s)he will be responsible for submitting them to the relevant authority.

For templates and requirements to reporting and monitoring see the Twinning Manual.

Project Steering Committee

A Steering Committee (comprising representatives of the Beneficiary, MS, PAO and the European Union Delegation) will be set up to supervise the implementation of the project. Whenever necessary, representatives of institutions, other donors or key experts should be invited to the Steering Committee meetings. The Committee will meet 4 times a year (on a quarterly basis) during the project period.

The Steering Committee will form an opinion on the progress of the project and verify the achievements of the outputs and mandatory results of the project.

The detailed information regarding project coordination (opening and closing events, project steering committee meetings, etc.) is presented in the section 3.4.

The working language of the Project implementation will be English. Translation and interpretation will be provided where necessary and if permitted by the provisions of the Twinning Manual.

4. INSTITUTIONAL FRAMEWORK

Ukraine’s current legislation spreads responsibilities on energy efficiency and renewable energy amongst several government agencies: the former National Agency for Energy Efficiency of Ukraine (NAER); and besides NAER, the Ministry of Fuel and Energy, the Ministry of Economy, the National Electricity Regulatory Commission and local authorities.

The National Agency for Energy Efficiency of Ukraine (NAER) was created in 2005 as an executive institution with special status responsible for government policy on the use of energy resources and energy saving. The Agency was created under the Presidential Decree No. 1900/2005. The mandate of the Agency included the tasks and responsibilities that had

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been the mandate of the former State Committee on Energy Saving. Principally, NAER responsibilities lay in the implementation of state policy in this field.

The main tasks and responsibilities of NAER were as follows:

- the implementation of an integrated government policy in the field of efficient use of energy resources and energy saving;

- to ensure the operation of a system for setting norms on specific energy consumption throughout the national economy;

- the establishment of a state monitoring system for the production, consumption and external trading of energy resources, to improve the accounting and control over the use of energy resources;

- to provide for a growing share of alternative and renewable energy sources in the national energy balance;

- to ensure the operation of a unified system regulating specific energy consumption throughout the economy.

NAER was led by a Chairperson appointed and dismissed by the Cabinet of Ministers upon recommendation from the Prime Minister. The Chairman has a number of deputies who are appointed and dismissed by the Cabinet of Ministers upon the Chairperson's recommendation. NAER status ranks lower than that of ministries, as underlined by the fact that NAER chairperson does not have a vote in the Cabinet of Ministers although he/she takes part in its meetings and can initiate the government resolutions proposals.

The NAER was fully financed from the State Budget of Ukraine. It consists of a central office with 105 employees (excluding the regional branches).

In the past, the State Inspectorate on Energy Saving (including its regional offices) formed part of the NAER. The Inspectorate acts according to a dedicated Governmental Resolution and performs the control functions. The Inspectorate has 430 employees, 368 of which work in the regional offices.

The major functions of the Inspectorate include: control and compliance of enterprises and organisations with energy consumption norms and their “Energy Certificates”, and provision of energy expertise in setting up energy consumption norms.

The Inspectorate was principally financed from the State Budget as part of NAER operational budget. However, the Inspectorate performs only the above mentioned control functions and do not play an active role in the setting-up of the energy efficiency and renewable energy policies.

The reform of the public administration launched in December 2010, has provided a window of opportunity to strengthen the institutional framework for energy efficiency. Besides the renaming of NAER into the State Agency for Energy Saving and Energy Efficiency (SAEEEC), its mandate, role and resources are being revised. This was done under the Decree of President of Ukraine Nr. 1085/2010 dated 09 December 2010. The reform also

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included abolishing of the State Inspectorate on Energy Saving and the incorporation of its offices throughout Ukraine into SAEEEC.

As part of its revised mandate, the management of SAEEEC is seeking an expanded role for the agency in the design and implementation of EE and RES policies shifting its focus from “policing” the implementation of energy efficiency measures towards supporting them. In particular, SAEEEC seeks to rely on EU experience in the design and implementation of policy in respect of EE & RES.

Beneficiary institution

The State Agency of Ukraine for Energy Efficiency and Conservation (SAEEEC) under the Cabinet of Ministers of Ukraine.

Muzeinyi lane, 12

Kyiv-01601

Tel.: (+38044) 590-59-60, 590-59-74

Fax: (+38044) 590-59-61, 590-59-75

Web: http://naer.gov.ua

The principle structure of the SAEEEC is presented in the Annex 4. The commitment of the Beneficiary institution towards the implementation of this Twinning project could be expressed in the light of the recent events as Ukraine officially joined the Energy Community on 1 February 2011. The implementation of this treaty contains a number of provisions in the areas of energy efficiency addressed by the ECT Energy Efficiency Task Force which have to be implemented in Ukraine. The political willingness to implement all required measures can be considered as the main driving force.

5. BUDGET

The total maximum budget is EURO 1,250,000

National in-kind co-financing should not be included into the total amount of the Contract since it is reserved for the Ukrainian administration to provide the short-term expertise with office space, equipment and for other provisions stated in the Twinning Manual.

The Contract should be signed in accordance with the provisions of the Twining Manual and during the implementation the Financial Provisions provided in the Twinning Manual should be strictly followed.

6. IMPLEMENTATION ARRANGEMENTS

6.1 Implementation Agency responsible for tendering, contracting and accounting

The Implementing Agency responsible for tendering, contracting and accounting is the European Commission represented by the Delegation of the European Union to Ukraine.

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Delegation of the European Union to Ukraine

10 Kruhlo-Universytetska St

Kyiv, 01024

Ukraine Tel: +380 44 253 3020

Fax: +380 44 253 4547

www.delukr.ec.europa.eu

The person in charge of this project at the Delegation of the European Union to Ukraine:

Mr. Gabriel Blanc

Sector Manager – Energy Efficiency and Renewable Energy

Delegation of the European Union to Ukraine

10 Kruhlo-universytetska Street

Kyiv, 01024

Ukraine

Tel.:+380 44 390 80 10

Fax:+380 44 253 45 47

E-mail: [email protected]

6.2 Main counterpart in the Beneficiary Country

The BC Project Leader within the Beneficiary Institution will act as the counterpart to the MS Project Leader. It is expected that BC Project Leader will be a senior civil servant, decision maker, (high ranking official) in the BC administration, who is in a position to operate at the appropriate political level. (S)he will be responsible for ensuring:

- the overall steering and coordination of the project together with the MS Project Leader, ensuring operational dialogue and support at political levels in order to facilitate the implementation of project activities;

- the mobilization of resources within SAEEEC, in order to allow appropriate implementation of project activities.

The proposed Beneficiary Project Leader is:

Mrs. Maria Malaya,

Deputy Chairman of SAEEEC

01601, Muzeinyi lane, 12

Tel: (+38 044) 455-57-10

Fax: (+38 044) 455 57-10

The Beneficiary shall designate one RTA counterpart for the coordination of overall Twinning project implementation together with the Resident Twinning Adviser. In line with

38

twinning experience, (s)he should allocate at least 40% of his/her working time for this Twinning project.

The RTA counterpart will have the following role in the implementation of the project:

- the day-to-day follow-up of project activities in close consultation with the RTA to ensure the effective implementation of the project work plan according to set mandatory results. Work in close collaboration with RTA to facilitate the implementation of activities;

- supervision of the work of the experts of the relevant departments of SAEEEC;

- ensuring the effective delivery of other inputs from SAEEEC which are planned to support the implementation of the project.

The responsible experts of the Beneficiary Institution will be designated by the Beneficiary (to spend at least 25% of their time with the EU experts on the planning, organisation, delivery and monitoring of activities related to the project).

The proposed Resident Twinning Adviser (RTA) counterpart person is:

Mrs. Olena Kazlovtseva

Head of Legal-Support Department


Tel: (+38 044) 590-59-69

Fax: (+38 044) 590-59-64


The Beneficiary Institution will also nominate a general contact point for the implementation of the project. (S)he should assist on and facilitate the establishment of relevant contacts and channelling of the project related information.

The Beneficiary Institution designated contact person is:

Mr. Vitaliy Bolyuta

Leading Specialist of International Legal-Support Division


Tel: (+38 044) 590-59-64

Fax: (+38 044) 590-59-64


The Programme Administration Office (PAO) at the Main Department of Civil Service of Ukraine is the administration responsible for coordination of the preparation of Twinning projects and support for their implementation, provision of advisory and methodological support to public authorities in preparation and implementation of twinning projects.

Role of the Programme Administration Office:

39

- The PAO is the central point of communication between the European Commission and the Beneficiary Administrations and between the MS Administrations and the Beneficiary Administrations;

- The PAO assists in providing the quality control of twinning fiches and twinning contracts;

- The PAO drafts a reference programming document for the twinning projects in the Beneficiary country;

- The PAO assists the Delegation to check that the detailed proposals meet the required standards;

- The PAO oversees that the good management of the Twinning project is in compliance with EC rules;

- Principally the PAO receives and examines all twinning project reports.

- The PAO assists the Resident Twinning Advisers (RTAs) with arrival, registration, stay and position during his/her activities in Ukraine (if required).

The person in charge for Twinning at PAO in Ukraine:

Mr. Andriy Vyshnevsky

Director of Twinning Programme Administration Office

15, Prorizna str., Kyiv, 01601, Ukraine

Tel.: +380 (44) 278 36 44

Fax: +380 (44) 278 36 50


Website address: www.twinning.com.ua

6.3 Contracts

Only one Twinning contract is foreseen for this project.

7. IMPLEMENTATION SCHEDULE 7.1 Launching of the call for proposals: June 2011

7.2 Start of project activity: March 2012 7.3 Project completion: December 2013

7.4 Duration of the execution period (number of months): 19 + 3 months

8. SUSTAINABILITY

40

The Twinning project will have to seek for sustainable solutions and approaches, which shall ensure adoption of best practices and thus prepare grounds for Ukraine’s full compliance with the selected EU Acquis and the best European practices in the field of energy efficiency.

All activities are designed to be automatically implemented or supported by the related road-maps and instructions for further implementation. This allows the Beneficiary Institution to be in a position to continue related implementation of associated activities even after the completion of the twinning project activities.

The sustainability issues will be further elaborated in the course of the preparation of the project contract as a joint responsibility of the MS partner and the Beneficiary Institution. Besides, in the final report twinning partners will include specific recommendations and strategies for safeguarding the achievement of mandatory results in the beneficiary administration. 9. CROSSCUTTING ISSUES

9.1 Equal opportunity

The proposed project will comply with EU equal opportunity policies. Equal treatment of men and women in project implementation at all levels will be one of the most important principles in project management and implementation. Great attention will be given to having equal participation within the personnel that will be trained as well. The beneficiaries are equal opportunity employers. Appropriate professional qualifications and experience will be the main decisive factors in personnel recruitment and evaluation. Both women and men have identical prospects.

9.2 Environment

The principle of implementation of this Twinning project is based on a paperless work environment. This means, in particular, minimizing paper use during project implementation: use of e-mails and if available project web-site and/or project electronic date base for cooperation between partners. Documents are automatically saved in electronic format.

10. CONDITIONALITY AND SEQUENCING

This project will be implemented through twinning arrangements. Consequentially, the Beneficiary Institution will be required to allocate sufficient and experienced staff and material resources for twinning project implementation. The commitment and participation of the senior management of the Beneficiary Institution is essential, both being involved in the development and implementation of the policies and facilitating institutional change required to deliver the project results or ensuring sustainability of actions after the completion of the project activities.

Staff Inputs

Significant staff time shall be made available for the various components of the project:

41

- At the broadest and most senior level, there must be political commitment and support within the Beneficiary Institution for the Twinning project as a whole;

- The current Twinning project has a nominated Beneficiary Project Leader with sufficient authority to administer and properly implement the project in practice. This person will also be named in, and sign, the Twinning Work-plan and Budget, as the figure ultimately responsible for its implementation;

- The Beneficiary Institution should designate relevant counterpart for each MS expert. The staff inputs should be detailed as far as possible within the Twinning work plan to ensure that there is full recognition of both the practical and political commitments required to achieve the desired results.

- The Beneficiary Institution should ensure co-ordination between departments/divisions connected with the project and to provide access to all necessary information and documents.

Infrastructure Inputs

The Beneficiary Institution will make available the necessary infrastructure for the twinning MS partner(s) to carry out their tasks as part of its in-kind contribution for the project:

- The provision of office space, the provision of equipment (including access to a computer, internet access, international telephone, fax, printing and photocopier for visiting experts, etc.) and the professional use of that equipment shall be made available as from the RTA’s day of arrival;

- Importantly, the office of the RTA should be in the immediate vicinity to the office if the RTA counterpart;

- All infrastructure requirements will be subject to the Twinning Contract, Twinning work plan and budget as foreseen in the Twinning manual;

- The provision of the suitable venues and equipment for any training or seminars that may be held under the project.

The logic sequencing of the above mentioned actions are crucial for the success of the project. Furthermore, the duration of the project allows for appropriate time for the project results to be absorbed within the Beneficiary.

The participation of the Beneficiary institution staff in relevant trainings, study visits, on-the-job training both in the Beneficiary Country and in selected Member state is conditional upon requirement that this staff remains within the structure of the Beneficiary Institution after the completion of this project. The Beneficiary Institution should also put all efforts to train its staff being capable to operate in international business languages.

42

ANNEXES

1. Tentative Project Implementation Scheme

2. Logical Framework Matrix

3. List of Relevant Laws and Regulations

4. The main structure of the SAEEEC

5. Detailed Implementation Chart

6. Non-investment Activity Matrix on Energy Efficiency in Ukraine

43

Annex 1

TENTATIVE PROJECT IMPLEMENTATION SCHEME

Project Implementation Group (MS) and Distribution of the project resources

MS Project Leader (PL);

Resident Twinning Adviser (RTA)

STE 1 – senior legal specialist in the area of the energy efficiency;

STE 2 – junior legal specialist understanding technical secondary legislation;

STE 3 – technical/legal expert on white certificates;

STE 4 – technical/legal expert on voluntary agreements issue;

STE 5 – technical/legal expert on energy audits;

STE 6 – technical/legal expert on labelling of household appliances;

STE 7 – technical/legal expert on end-user efficiency;

STE 8 – technical/legal expert on energy efficiency incentive schemes;

STE 9 – technical/legal expert on the energy performance of buildings;

STE 10 – technical/legal expert on and energy efficiency standards.

Project precondition implementation and project coordination (total 40 days)

0-1. Project steering and reporting – 30 days

0-2. Project visibility – 5 days

0-3. Coordination with other related projects – 0 days (RTA activity)

0-4. General translation and interpretation – 0 days (assistance & interpreter)

0-5. Twinning training – 5 days

Component 1. Adaptation of the Ukrainian legislation to the required energy efficiency EU Acquis and the review of selected primary and secondary legislation in the field of energy efficiency, including the analysis, preparation of the legislation consolidation plan and its drafting

(total 365 days)

Subcomponent 1-1. Review of primary legislation – 90 days

Subcomponent 1-2. Incentive schemes for promoting energy efficiency – 110 days

Subcomponent 1-3. Energy audits and energy management – 75 days

Subcomponent 1-4. Energy performance of buildings – 50 days

Subcomponent 1-6. Development of a National Energy Efficiency Action Plan (NEEAP) and its reporting - 40 days

44

Component 2 Creation of EU compliant standards in the field of the energy efficiency (total 120 days)

Subcomponent 2-1. Transposition of existing energy efficiency standards– 40 days

Subcomponent 2-2. Introduction to eco-design – 50 days

Subcomponent 2-3. Labelling of household appliances – 30 days

Component 3 Benchmarking of the SAEEEC institutional set-up with its EU peers (35 days)

Note: The grand total of the main four components amounts to around 560 person-days. However, the selected Member State while drafting the precise twinning contract has a right to reconsider the number of days allocated for all activities within the allocated budget of the project.

Annex 2 LOGICAL FRAMEWORK MATRIX

LOGFRAME PLANNING MATRIX FOR Project: Programme name and number

UA10/ENP-PCA/EY/29

Contracting period expires:

21/12/2012

Disbursement period expires:

21/12/2013

(the implementation deadline)

Improvement of the Policy Framework in the Sphere of Energy Efficiency and

its Approximation to the Requirements of the EU Legislation

Total budget:

EURO 1,250,000

ENPI budget:

EURO 1,250,000

Overall objective Objectively verifiable indicators Sources of Verification

The overall objective of this project is the establishment of an operational system of effective legislation and policy in the sphere of energy efficiency aligned to the requirements of EU legislation, which will primarily facilitate the creation of a self-enabling environment for the overall reduction of energy consumption and consumption of the primary energy resources.

Energy efficiency standards, international best practices and EU regulations [to the extend vailable] are implemented in accordance with requirements set in the Energy Community Treaty

The Energy Community secretariat reports

Regular meetings between EUDEL, PAO, BC PL and MS –PL to discuss ongoing incremental progress towards achieving the Overall Objective

Project purpose Objectively verifiable indicators Sources of Verification Assumptions

To harmonize selected national legislation in the field of energy efficiency with the relevant EU Acquis / standards and to prepare the basis for its implementation. Alongside legislation, the project aims to strengthen the tools and mechanisms based on best-EU practices in order to maximize the impact of the new legislative framework. Such tools are: increasing the use of incentive schemes boosting energy efficiency, energy audits, introducing energy management practices and partly awareness-raising on energy efficiency, efficient monitoring of energy efficiency and application of the energy efficiency standards on energy-efficient equipment.

The main energy efficiency related primary and secondary legislation revised and/or drafted is fully in line with the relevant EU Acquis. The associated energy efficiency tools on energy audits, management, incentive schemes implemented and the relevant EU standards on the energy efficiency are introduced.

Energy efficiency legislation as adopted by the Ukrainian authorities

EC-Ukraine Regular Reports

Energy Community Ministerial Council reports

Reports of external interim evaluation reports

Joint Monitoring Committee protocols

Monitoring reports

The Government of Ukraine maintains its commitments specified under the Energy Community Treaty.

46

Project interim quarterly and final reports

Partially the output reports prepared by MS partner experts during the course of the project with the list of delivered outputs

Project results Objectively verifiable indicators Sources of Verification Assumptions

Mandatory results:

- required8 energy efficiency EU Acquis adapted and selected primary and secondary legislation in the field of energy efficiency reviewed, including the analysis, preparation of the legislation consolidation plan and its drafting;

- basis for an EU compliant system of standards in the field of the energy efficiency created;

- Beneficiary Country capacity to manage developments in the field of energy efficiency strengthened.

The detailed objectively verifiable indicators are presented below and linked to the achievement of intermediate results.

EC-Ukraine Regular Reports

Energy Community Ministerial Council reports

Reports of external interim evaluation reports

Joint Monitoring Committee protocols

Monitoring reports

Project inception, interim quarterly and final reports

Partially the output reports prepared by MS partner experts during the course of the project with the list of delivered outputs

SAEEEC internal reports

Mission reports by STEs

Study tour evaluation report

The Government of Ukraine maintains its commitments specified under the Energy Community Treaty.

The reorganisation process of the SAEEEC has no negative impact on the project

Component 1 –Ukrainian legislation adapted to

8 The required energy efficiency EU Acquis is presented below, but is not limited to:

• Directive 2006/32/EC on energy end-use efficiency and energy services • Directive 2002/91/EC on the energy performance of buildings • Directive 2010/30/EU on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products

47


the required energy efficiency EU Acquis and selected primary and secondary legislation in the field of energy efficiency reviewed, including the analysis, preparation of the legislation consolidation plan and its drafting:

Subcomponent 1-1. Review of primary legislation:

- Primary legislation concerning energy efficiency (incl. Law on Energy Efficiency and legislation on the energy efficiency in Buildings) reviewed

- Comparative analysis of the primary legislation with 2006/32/EC, 2010/31/EU, 2010/30/EU directives and 2009/125/EC

- Consolidation and simplification of primary legislation in the field of energy efficiency

- Revised energy efficiency law and the legislation on the energy efficiency of buildings prepared and submitted for the official approval process

- Recommendations for the improvement of the primary legislation and approximation of the three EU Directives presented

Legal draft documents prepared


Gap analysis reports

Partially the project activities output reports




- Analysis of the existing incentives schemes

- EU instruments for promoting energy efficiency presented

- System on the issuing and operation of “white certificates” developed

- Introduction of the voluntary agreements

- Specific proposals for the provision of incentives towards the implementation of energy efficiency projects developed

- Relevant legal and regulatory framework for implementation of incentive schemes drafted and submitted for adoption

- Report on the analysis of existing incentive schemes

- Relevant secondary legislation reviewed and submitted for the official approval process

- Stakeholders adequately informed on the features of incentive mechanisms

- Packages for the implementation of white certificates and voluntary agreements presented and submitted for the official approval process

- Additional incentive instruments for increasing energy efficiency identified as







48


suitable for their introduction

- Associated draft legislation prepared and submitted for the official approval process


- Energy audits implementation scheme and associated legislation reviewed

- CEN standards on energy management standards transposed into Ukrainian technical regulations

- Legal and regulatory framework for the provision of energy demand-side management developed

- Existing legislation for the implementation

of the energy audits and implementation of the demand-side management reviewed, relevant amendments proposed and submitted for the official approval process

- EU-based standards on energy management are implemented

- Regulations on the energy audits and demand-side management of energy reviewed, amendments proposed and submitted for the official approval process







Subcomponent 1-4. Energy performance of buildings

- Requirements for the energy performance of buildings introduced

- Tools and mechanisms for increasing and monitoring the energy performance of buildings identified

- Secondary legislation for the implementation of a system of requirements for the energy performance of buildings scheme proposed (if required) and submitted for the official approval process

- Regulation on the energy performance of buildings scheme reviewed and/or prepared







The Ministry of Regional Construction initiates relevant legislation preparation or review and SAEEEC is involved in this process.


- Preparation of NEEAP for the period until 2016

- NEEAP prepared, including the

National Energy Efficiency Action Plan

49


- Preparation of the Progress Reports for the Energy Community

identification of financial resources

- Progress reports during the timeline of the project on NEEAP implementation prepared and timely submitted


Component 2 –EU compliant standards for energy-using products created

Subcomponent 2-1. Transposition of existing CEN/CENELEC measurement standards regarding the ecodesign of energy-using products

- Already existing CEN or CENELEC standards regarding the compliance with ecodesign requirementsenergy efficiency of those energy-using equipment / products listed in Ukraine’s plan for development of energy efficiency standards transposed into Ukrainian technical regulations

- Technical regulations for energy-using equipment adopted on the basis of existing EU standards








- Introduction to standards for energy-using equipment in the framework of eco-design requirements for energy-using products (EU Directive 2009/125/EC) developed

- Eco-design for energy-using equipment introduced

- Introduction of the Beneficiary institution to the Eco-design Regulatory Committee setting eco-design requirements for energy-using products

- Ukraine joins the Regulatory Committee as an observer.

EU working group meetings agenda and minutes (if applicable)



The EU Regulatory committee on the development of energy efficiency standards remains operational.

Subcomponent 2-3. Labelling of household appliances

- System of technical regulations in the field of energy efficiency through the introduction of compulsory labelling the energy consumption of household appliances in accordance with EU

- Labelling requirements on the energy consumption of household appliances introduced



50


practices reviewed and improved





Component 3 – Benchmarking of the SAEEEC institutional set-up with its EU peers

- SAEEEC institutional set-up benchmarked with its EU peers. Including explanation of applicable functions for the SAEEEC

- EU related institutional structures applicable to the Beneficiary reviewed

- Institutional framework and presentation of the proposed structure and required personnel presented

- The Beneficiary’s Capacity Building Plan is updated (if appropriate)

- Presentation of relevant EU institutions and visits to them

- Identification of the possible functions of the Beneficiary

- Institutional analysis and new structure proposed

- TNA report

Training needs assessment

Study visit programmes

New SAEEEC structure proposal





Activities Means Assumptions

Component 1 – Adaptation of the Ukrainian legislation to the required energy efficiency EU Acquis and the review of selected primary and secondary legislation in the field of energy efficiency, including the analysis, preparation of the legislation consolidation plan and its drafting

Subcomponent 1-1. Review of primary legislation

Activity 1-1-1. Review of the Law on Energy Efficiency



Activity 1-1-4. Comparative analysis of Ukraine’s primary legislation and Directives 2006/32, 2010/31,2010/30 and 2009/125/EC

STEs x 90 working days

BC experts involvement for the whole duration of the activity

Interpretation/ translation

51


In view of the significance of the mechanisms of white certificates and voluntary agreements, activities under these two areas are described separately.





Activity 1-2-5. Preparation of the relevant legal and regulatory framework

White certificates






Voluntary agreements







Energy audits




BC experts involvement for the whole duration of the activity (incl. study visit)




52


Activity 1-3-4. Energy audit methodologies

Activity 1-3-5. Attestation of energy auditors


Activity 1-3-7. Institutional framework set-up

Activity 1-3-8. Road-map for the implementation of the energy audits

Energy management



Activity 1-3-11. Review of the secondary legislation on the implementation of energy management, including the transposition of CEN standards on energy management into Ukrainian secondary legislation and/or technical regulations.

Activity 1-3-12. Energy management methodologies

Activity 1-3-13. System certification Attestation of energy managers

Sub-component 1.4- Energy performance of buildings





Activity 1-4-5. Certification of buildings

Activity 1-4-6. Energy audits of building stock


Activity 1-5-1. Assessment mission







BC experts involvement for the

53

Activity 1-5-3. Preparation of the NEEAP


Activity 1-5-5. Preparation of one progress report

whole duration of the activity (incl. study visit)


Component 2 – Creation of EU compliant standards for energy-using products

Subcomponent 2-1. Transposition of existing energy efficiency standards


Activity 2-1-2. Transposition of the selected EU energy efficiency standards


Activity 2-2-1. Round table discussion on benefits from Ukraine’s participation in the EU Regulatory Committee on development of energy efficiency standards

Activity 2-2-2. Joining the EU Regulatory Committee


Activity 2-2-4. Preparation for the working visits


Sub-component 2-3. Labelling of household appliances


Activity 2-3-2. Seminar on labelling

Activity 2-3-3. Study visit on labelling











Component 3

54

Benchmarking of the SAEEEC institutional set-up with its EU peers

Activity 3-1. Assessment mission and gap-analysis

Activity 3-2. Benchmarking of the SAEEEC

Activity 3-3. Study visit

Activity 3-4. Overall review of the institutional framework





Annex 3

List of the Relevant Legislation

1. Law of Ukraine "On energy saving"

2. Law of Ukraine "On combined heat and power (cogeneration) and Waste Energy Potential"

3. Law of Ukraine "On State program of economic and social development of Ukraine for 2010"

4. Law of Ukraine "On amendments to some legislative acts of Ukraine on the promotion of energy efficiency measures"

5. Law of Ukraine "On alternative sources of energy"

6. President of Ukraine Decree "On Urgent Measures to ensure efficient use of energy resources" as of 28.02.2008 № 74

7. Cabinet of Ministers of Ukraine Resolution "On approval of the Energy Strategy of Ukraine for 2030" as of 15.03.2006 № 145-r

8. Cabinet of Ministers of Ukraine Resolution "On approval of the Action Plan for 2006-2010 of the Energy Strategy of Ukraine for 2030" as of 27.07.2006 № 436-p

9. Cabinet of Ministers of Ukraine Resolution "Issues of the National Agency of Ukraine for Energy Efficiency" as of 03.04.2006 № 412

10. Cabinet of Ministers of Ukraine Resolution "Question of the State Inspectorate for Energy Conservation" as of 29.06.2000 № 1039

11. Cabinet of Ministers of Ukraine Resolution "On approval of the development and implementation of national target programs" of 31.01.2007 № 106

12. Cabinet of Ministers of Ukraine Resolution " On Adoption of the Order for Preparation, Implementation and Monitoring of the EU Sector Budget Support Programs in Ukraine as of 15.09.2010 № 841

13. Cabinet of Ministers of Ukraine Resolution "On approval of the Concept of National Targeted Economic Program for 2010-2015 energy efficiency year" as of 19.11.2008 № 1446-r

14. Cabinet of Ministers of Ukraine Resolution "On approval of the State Target Economic Program on Energy Efficiency 2010 - 2015 years" as of 01.03.2010 № 243

15. Cabinet of Ministers of Ukraine Resolution "On approval of the concept of energy balance" as of 28.11.2007 № 1058-r

16. NAER Order "On the Provisional Regulations on the procedure for expertise and certification of energy specialized organizations as its holding" as of 12.05.97 № 49

17. NAER Order "Order approval NAER innovation and investment projects in energy saving technologies and technologies for the production of alternative fuel sources that are realized by entities within the preference lending" of 17.04.2007 № 59

56

18. NAER Order "On approval of the Methodology of branch, regional programs and energy efficiency programs reduce energy consumption by budget institutions by their rational use" as of 17.03.2009 № 33

19. NAER Order "The Order on include in the State Register of enterprises, institutions and organizations involved in the development, implementation and use of energy saving measures and energy efficiency projects" as of 01.04.2008 № 49

20. NAER Order "On approval of a competitive selection of energy saving measures for their financial support at the expense of the state budget for the program" State support for energy efficiency measures through the mechanism of reduction cost of credits " as of 11.11.2008 № 162

Annex 4 The main structure of the SAEEEC (ex- NAER structure) as of December, 2010

Chairman of SAEEEC

Deputy

Chairman

Legal-Support Department

28

Legal Support and Standards Development

Division 9

Department of Analysis and Examination of Scientific and

Technical Projects

5

Technical Policy Department

22

Scientific and Technological Policy Division

5

Fiscal Policy and Accounting Department

11

Economic Policy Department

22

Energy Efficiency Programmes Division

5

Monitoring the energy balances and energy efficiency indicators

Division 5

Operational Division

6

Human Resources and Secretary Support

Division

7

Governing body of state administration – State Inspection of

Energy Conservation

(SIEC)

420

Administrative and Logistics Support

Division

8 Information Support and Mass Media Division

5

International Legal-Support Division

6

Head of SIEC

SIEC-control and Standards

Implementation Division

6

Standards development and energy labeling Division

5

Division of Alternative and Renewable Energy Resources

5

Accounting and Reporting Division

5

Budget Policy Division

5

Control and Accountability Sector

3

Deputy

Chairman

First Deputy Chairman

Energy Audit and Management Division

5

Analytical Support Division

5

Sector for Corruption Prevention

3

58

Annex 5

DETAILED IMPLEMENTATION CHART - A (tentative)

2011 2012 2013

II quarter III quarter IV quarter I quarter II quar ter III quarter IV quarter I quarter II quarter III quarter IV quarter

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Twinning project

A C C T P P P P P I I I I I I I I I I I I I I I I I I I I I I

A – Project Fiche approval

C – Project Fiche circulation and submission of MSs proposals

T – Tendering (winning MS selection and notification)

P – Contract preparation

I – Implementation

59

Annex 5 (cont.) DETAILED IMPLEMENTATION CHART - B (tentative)

2012 2013

I quarter II quarter III quarter IV quarter I quart er II quarter III quarter IV quarter

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Legal duration of the project 22 months (19 + 3 months) Twinning project

Project activities implementation period 19 months

Project precondition implementation and coordination

Action 0-1-1. Project reporting X X X X X X X

Action 0-1-2. Introductory study visit X

Action 0-1-3. Establishment of a Steering Committee X

Action 0-1-4. Steering Committee meetings X X X X X X

Action 0-2-1. Opening meeting X

Action 0-2-2. Visibility measures Continuous activity

Action 0-2-3. Closing meeting X

Action 0-3-1. Coordination activities X X X X X X X

Action 0-4-1. Translation and interpretation Continuous activity

Action 0-5-1. Twinning workshop X

60

Activities

Activity 1-1-1. Review of the Law on Energy Efficiency X


X


X

Activity 1-1-4. Comparative analysis of Ukraine’s primary legislation and Directives 2006/32, 2010/31 and 2010/30

X

Activity 1-2-1. Assessment mission and gap-analysis X


X


X


X

Activity 1-2-5. Preparation of the relevant legal and regulatory framework X



X

Activity 1-2-8. Study visit X


X


X


61


X



X


X



X


Activity 1-3-4. Energy audit methodologies X

Activity 1-3-5. Attestation of energy auditors X


X

Activity 1-3-7. Institutional framework set-up X

Activity 1-3-8. Road-map for the implementation of the energy audits X



X

Activity 1-3-11. Review of the secondary legislation on the implementation of energy management, including transposition of energy management standards

X

Activity 1-3-12. Energy management methodologies X

Activity 1-3-13. Certification Attestation of energy X

62

managers



X



X

Activity 1-4-5. Certification of buildings X

Activity 1-4-6. Energy audits of building stock X

Activity 1-6-1. Assessment mission X


X

Activity 1-6-3. Preparation of the NEEAP X


X

Activity 1-6-5. Preparation of one progress report Depending on the reporting schedule


Activity 2-1-2. Transposition of the selected EU energy efficiency standards

X

Activity 2-2-1. Round table discussion on benefits from Ukraine’s participation in the EU Regulatory Committee on development of energy efficiency standards

X

Activity 2-2-2. Joining the EU Regulatory Committee X


Activity 2-2-4. Preparation for the working visits Depending on the regulatory committee schedule

63


X


Activity 2-3-2. Seminar on labelling X

Activity 2-3-3. Study visit on labelling X


X

Activity 3-1. Assessment mission and gap-analysis X

Activity 3-2. Benchmarking of the SAEEEC X

Activity 3-3. Study visit X

Activity 3-4. Overall review of the institutional framework X


Depending on the outcome of the existing TA projects

64

Annex 6 Non-investment Activity Matrix on Energy Efficiency in Ukraine

Cut-off date - 30May 2010

Donor/IFI Project name Engagem-ent period

Beneficiary Amount of financing

USD Short Project Description Implementation Arrangements

Capacity Building: Energy Efficiency in Buildings

IFC (Completed)

Ukraine Residential Energy Efficiency Feasibility Study

finished in summer 2009

Condominium associations, and housing management companies

Feasibility study done in preparation for launching the Ukraine Residential Energy Efficiency Project (see below).

IFC and Swiss Cooperation Office (financing)

Ukraine Residential Energy Efficiency Project

2010 - 2012

Condominium associations, housing management companies, residents of multi-family buildings

The objective of the Project is to facilitate at least $50M of investment into energy efficient renovations of residential multi-family buildings and directly avoid at least 200,000T CO2 per year by creating an effective legal and institutional platform to support Ukrainian condominium associations and housing management companies in getting access to finance for the purpose of improving energy efficiency of the country’s existing housing stock.

The Project will take on a programmatic approach and will focus on the following key objectives: 1. Develop legislation to enable local housing CAs and management companies to access finance to improve EE of multifamily buildings. 2. Work with 3-5 partner Ukrainian banks to develop and market financially-viable energy efficient housing loan products targeted at CAs and housing management companies. 3. Increase awareness of residential EE among key market stakeholders.

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GTZ

Energy Efficiency in Buildings Phase I: 07/2007 - 06/2010 Phase II (planned): 07/2010 - 06/ 2013

Construction Ministry and Housing and Communal Services Ministry Ukraine; Municipalities of Chernihiv, Ivano-Frankivsk, Myrhorod and Novohrad-Volynskyi

Phase I: 2 Mio EUR, Phase II: 2 Mio EUR (tbc.)

Advise on draft laws on energy efficiency in buildings and the development of incentive and funding schemes at national level; Assistance in building up municipal energy units, developing energy plans, introducing municipal energy management and preparing retrofitting pilot measures in 4 pilot cities; Capacity building & training on municipal EE management to municipal energy managers; Information and awareness-raising campaigns; More at: www.eeib.org.ua

Commissioned by German Development Ministry (BMZ); Implementation agreements with Construction Ministry and Housing and Communal Services Ministry Ukraine; Cooperation with Association of EE Cities in Ukraine and Institute for Energy Saving & Management (IEE) of Kyiv Polytechnical University (KPI)

GTZ (International Climate Initiative of German BMU)

Energy Efficient Building in Ukraine Pilot project

Construction Ministry; Environmental Ministry Ukraine; Municipalities, Architects, Construction companies, Associations

EUR 4,500,00

Development of energy efficient building concepts for new construction projects – 1 new construction project in Kyiv and 1 in Poltava; Capacity building & training on EE planning, construction quality, Retscreen software application, building operation and building facility management with building life-cycle approach; Development of incentive schemes on EE investments based on energy saving, life-cycle assessment and credit lines with UA finance sector; Information and awareness-raising campaigns

Comissioned by German Environmental Ministry (BMU); Implementation agreement with Construction Ministry Ukraine; Cooperation with Environmental Ministry Ukraine; Cooperation with Association of EE Cities in Ukraine

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EBRD

Improving Energy Efficiency of Residential Buildings

2009 -

Ministry of Housing and Communal Services, NAER

The objective of this assignment is to improve the energy performance of buildings in Ukraine (focusing on, but not necessarily limited to, the residential sector) by a) creating demand for investment in higher performing equipment and materials through the promotion of minimum energy efficiency performance standards and best practice solutions for energy efficiency performance of buildings and b) mitigating investment barriers by instigating an enabling environment for investments to improve energy efficiency in buildings through the provision of policy and regulatory support.

The assignment will be split into two phases. Phase 1 will comprise the following tasks: The development and continued support for the duration of the assignment of a comprehensive web-based information tool that offers the opportunity for key stakeholders to become familiar with: best practice experience of implementing energy efficiency in the building sector; policy and regulatory development; recommended technologies, equipment, procedures and services; financing options and initiatives. The website will be developed with a view to supporting, in the medium term, a financial vehicle for energy efficiency investment. To prepare a report providing a detailed assessment of all aspects of energy efficiency in residential buildings in Ukraine including current energy efficiency standards, potential for improving energy efficiency, ownership and maintenance issues, institutional and regulatory arrangements, arrangements for financing investments and financing models. The report will also identify priorities for a future National Action Plan for energy efficiency in the Ukraine residential sector and for regulatory reform. Under Phase 2, the consultant will provide advisory services to support the Government of Ukraine. The advisory services will assist the Government in developing primary and/or secondary legislation designed to facilitate or support investment to improve the energy performance of buildings.

BMU Climate Initiative

Energy Efficient Building in Ukraine Pilot project

2009- December 2012

Ministry for Environmental Protection of Ukraine Ministry of Regional Development and Construction, Municipalities, Architects, Construction companies, Associations

EUR 4,500,00

The main objective of the project is to develop and implement an energy efficient and recourse protecting building concept for new or existing building projects. After completion of the building activities and staring up of the technical systems, the project will calculate the energy consumption and related CO2 emissions , energy costs throughout an annual period to point the cost and energy savings in comparison to conventional buildings.

*Development of energy-efficient building concepts during planning stage and implementation *Awareness raising through the dissemination of the approach within relevant national and municipal institutions, associations, chambers and the general public *Training and instruction of involved actors (municipalities, architects, technical experts and construction companies)

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Capacity Building: Industry Energy Efficiency

IFC (Completed)

Ukraine Energy Efficiency Survey Project

Completed in March 2010

SMEs, FIs, Government

This study aims to evaluate how Ukrainian enterprises perceive energy efficiency, determine which types of energy efficiency projects are implemented, how they finance energy efficiency investments, and raise awareness among industrial enterprises on how to improve their EE though technical and organizational measures.

Surveyed 325 enterprises throughout the country and across the several different industrial sectors (including chemicals, building-materials production, food processing, metal-working, and machine building) on the issue of energy efficiency - Presented results of the Survey at the WB/IFC Banking event on energy efficiency on March 31, 2010 -Published and disseminated the report of survey results to interested stakeholders -Increase awareness of EE among targeted FIs, SMEs, government, mass media and general public

IFC Sustainable Energy Finance Project

to start in summer 2010 thru 2012

SMEs to be financed via Ukrainian financial institutions

Facilitate at least $100 million financing of energy efficient projects via Ukrainian financial institutions

The Project seeks to establish a sustainable market for sustainable energy finance (SEF) products in Ukraine targeted to the industrial sector.

1. Supporting the development of financially viable sustainable energy finance lending products through local financial institutions; 2. Strengthening the capacity and effectiveness of local technical experts; 3. Building awareness and market demand for sustainable energy finance through a broad public awareness campaign

IFC Ukraine Cleaner Production Program

Fall 2009 - 2014

Main focus on agribusiness sector; also real sector enterprises, subnational entities and municipalities

Facilitate $150 million in cleaner production projects.

The overall goal of the Program is expected to be met by achieving the following objectives: 1: Stimulate uptake for CP improvements and investment at the company level. 2: Raise awareness of CP among agribusiness, industry and policy makers. 3: Improve the regulatory environment for cleaner production.

The Program will last five years, and the ultimate long term results (impact) of the proposed Program will be: 1) Facilitated volume of investment in cleaner production projects (US$ 150 million on IFC and other FIs account). 2) Reduced costs (cumulatively US$ 30 million/year) from cleaner production improvements. 3) Increased energy and resource efficiency of Ukrainian enterprises. 4) Avoided pollution (targeting 230,000 tons/year of CO2 equivalent).

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UNIDO

Establishment and operation of a National Cleaner Production Programme

2007 - 2010

§ SMEs, § Environmental and industrial policy makers,§ National consultants,§ Industrial research institutions and universities,§ Environment

EUR 600,000

The project aims at enhancing the diffusion of quality and productivity providing national industries with tools that will facilitate access to national and regional markets with environmentally sound products. It has a sectoral approach with a specific focus on energy efficiency. The project plays an important role in coordinating national Cleaner Production efforts and promotes partnership between public and private institutions at national and regional levels.

§ Awareness raising § CP training of national experts,§ CP and EST project development and implementation

UNIDO

Improving Energy Efficiency and Promoting Renewable Energy in the Agro-Food and other Small and Medium Enterprises (SMEs) in Ukraine

2011-2015

§ SMEs § Decision-makers and policy-makers § Research institutions

USD 5,140,000 (indicative) USD 176,000 (preparatory phase)

The main objective is to develop a market environment for scaling up energy efficiencies and enhanced use of renewable energy technologies for fuel switching in the energy intensive manufacturing small and medium enterprises (SMEs) in Ukraine as a basis for promoting their competitiveness while ensuring an integrated approach for lower carbon intensity and improvement in the local environment.

The project will be implemented through providing TA under the GEF funding and mobilizing co-funding from the national resources. The main project components are: § Policy support § Promoting energy efficiency technologies and use of renewable energy § Preparation and operationalization of scaling up strategy on EE and RE in energy intensive SMEs clusters § Awareness raising and capacity building in the selected energy intensive SMEs

Norwegian Ministry of Foreign Affairs

Sustainable Capacity Building for Climate Mitigation projects in Ukraine

(-) National Agency Ecological Investments Ukraine. (-) Co-operation is currently launched with the National Agency Rational Use of Energy Resources

500 000 USD

The Norwegian-Ukrainian co-operation is established to promote climate projects development and financing, based on modern energy technologies. In Ukraine, there are many technically promising project ideas having considerable potential for climate change mitigation, but they need assistance in preparation of bankable feasibility studies and business plans. Therefore, the Norwegian Programme is focused at projects development and capacity building of local specialists on various aspects energy efficiency and renewable energy

Main activities include: (-) information seminars in regions of Ukraine; (-) education and training programmes; (-) development of a pipeline of projects having considerable climate mitigation potential; (-) transfer of modern Scandinavian expertise on these issues. The Norwegian Association of Energy Suppliers and Users (Norsk Energi) has initiated and managed the Programme.

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development.

Swiss Cooperation Office; project to be implemented by UNIDO

National Network for implementation of resource efficient and cleaner production (RECP) in Ukraine

2011-2014

Government of Ukraine, industry and professional associations, SMEs

TBD

The Project objective is to improve the resource productivity and environmental performance of businesses in the target regions and sectors and thereby to contribute to sustainable industrial development in the country. The project will cover four main aspects: 1. Reduction of the environmental footprint of business sector 2. Production efficiency: increase in the resource productivity and reduction of operational and compliance costs 3. Implementation and enforcement of policies and regulations conductive to RECP 4. Technologies: improvement of the national innovation system to ensure effective transfer and replication of ESTs

TA. It will be implemented by UNIDO

INOGATE

SEMISE "Support to Energy Market Integration and Sustainable Energy in the NIS"

Jan 2009 - Jan 2012

Main focus on the banking sector (regional and local) or international institutions

Programme with the budget of € 5.6 million for 11 countries

The Programme objective is promoting the development of sustainable energy policies and assisting the Pertner Countries in their implementation. With a particular focus on the promotion of demand-side management, energy efficiency in all pertinent sectors, renewable energies, and the mitigation of the negative impact of energy-relayed activities on the environment.

Facilitation of financing by the banking sector (regional and local)or international institutions, of energy-related infrastructure projects initiated by the public sector, energy companies and/or private investors, with a particular emphasis on energy efficiency, energy conversation, renewable energy projects and infrastructure of common regional interest (whenever possible with the available budget resources), through a project preparation facility.

Capacity Building: Municipal Energy Efficiency

EU

Cooperation in Urban Development and Dialogue (CIUDAD)

Dec 2009-Dec 2012

Local authorities (in Ukraine: Sevastopol, Lviv, Lutsk, Kamynets-Podilsky, Cherkassy)

EUR 14 million

The programme is designed to forge partnerships between local actors in the European Neighbourhood (ENPI) countries and the EU, by developing their capacities to work together to resolve common problems. A total of 21 projects in the fields of good governance and sustainable urban development are

Grants

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implemented in the European Neighbourhood area. Three projects related to municipal energy efficiency are implemented in Ukraine (local authorities in Sevastopol, Lviv, Lutsk, Kamynets-Podilsky, Cherkassy are involved).

UNDP Energy efficiency in Ukraine’s educational sector

Schools in the Rivne region

??

Project proposes to capitalise on the competencies developed by ESCO-Rivne in the communal heat sector under the UNDP-GEF project and provide it with the necessary tools that will enable it to easily expand its activities to cover implementation of energy efficiency measures in the educational sector

UNDP

Removing Barriers to Greenhouse Gas Emissions Mitigation through Energy Efficiency in the District Heating System, Phase 2

2006-2010

Rivne city DH and other municipal DH companies

??

Focus: energy efficiency in DH sector Objective: creation of an Energy Service Company (ESCO) as self-sustaining company conducting energy efficiency activities at the municipal and regional level

ESCO modality

USAID Municipal Heating Reform Project

2009-2012

Ministry of Housing and Communal Services, Municipalities

$13.3 million

The Municipal Heating Reform project will help create a financially viable and sustainable municipal heating sector able to deliver reliable and efficient services to Ukraine’s citizens, public institutions and local industries. Specifically, it will focus on strengthening the legal, regulatory, and institutional framework to improve heating services to customers; improving tariff regulation and methodology; educating the public and government officials on these matters; enhancing the capacity of municipalities to plan, manage, and fund the development of the heating systems; and improving energy efficiency in residential and municipal buildings.

Task Order with International Resources Group

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USAID (Completed)

Developing the Municipal Energy Efficiency Market in Ukraine

2008- March 2010

ESCO-Rivne

Total resource level: $325,000 USAID ‘s share: $130,000

The goal of this project is to create a stronger and sustainable ESCO operation in Ukraine, based on the actual ESCO-Rivne organization, to address the needs of Ukrainian municipal Energy Efficiency market. The project will develop the needed capacity within ESCO-Rivne to address the energy efficiency market potential of the Ukrainian municipalities, and implement the ESCO approach potential for energy efficiency projects in municipal sector.

GDA Cooperative Agreement with Econoler (Canada); Other Partners: ESCO Rivne

USAID

Cooperation in Research and Education in Science and Technology (CREST) Center for Energy Efficiency Implementer: Civilian Research & Development Foundation (CRDF)

2008- June 2011

Ivano-Frankivsk Pedagogical University


The CREST Center for Energy Efficiency, selected through a peer-reviewed competition among Ukrainian universities, will develop innovative solutions and new technologies for energy conservation and efficiency while educating young scientists in this important field. Possible areas of concentration could include alternative energy, fuel cells, industrial and residential energy efficiency, and sustainable and renewable energy sources. By integrating research and higher education to focus on energy efficiency, the CREST Center will direct the attention of students and professors alike to developing cutting-edge practical solutions and technologies to improve energy conservation and efficiency. The Center will also provide information and training on best practices in energy use that can be applied throughout the country and provide long-lasting results. It will do so while helping the country develop its latent university research capacity and revolutionizing its approach to science education for students and young scientists.

GDA Cooperative Agreement with CRDF Other Partners: Ministry of Education and Science, Ivano-Frankivsk Pedagogical University

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USAID

Affordable District Heating in Alchevsk Project Implementer: Municipal Development Institute (MDI)

2008 - December 2010

Alchevsk Municipality


The project assists the Alchevsk municipality to develop and implement a strategy that provides citizens with affordable heating. Implementation of the strategy will be financed by the Alchevsk City Development Fund. The project aims to: • introduce innovative financing mechanisms for investment projects in the area of energy efficiency; • establish a consumption-based billing system; • improve the social protection system for the most vulnerable consumer groups; and • ensure that the public is aware of the need of energy conservation.

GDA Cooperative Agreement with MDI Other Partners: Alchevsk City Municipality, Alchevsk City Development Fund

Swiss Cooperation Office

Sustainable energy infrastructure project

2011 -

Ministry of Communal Housing, selected municipality/communal enterprises

TBD

The project will be focused on combination of rehabilitating boiler and heat stations together with flow control and measuring devices at the interface of the district heating system and the individual houses in one of the selected municipality.

Grant financed project

Capacity Building: State Support

EU Budget Support 2010-2011

NAER and the whole energy efficiency sector

€ 63 Mln

Disbursement of three instalments of, respectively, 31 M€ and two times 16 M€ over 36 months if certain pre-agreed conditions, mostly on EE (but as well PFM and macroeconomics) are met. [NB: funds going to state budget and not to NAER or Min Energy].

The Government of Ukraine as a whole is responsible for reaching the objectives.

EU Complementary Assistance to Budget Support

Due to start in mid 2010

Mainly NAER € 7 Mln

Service contracts to support NAER in meeting the objectives of the Budget Support mentioned above. A grant component is foreseen to finance relevant demonstration projects.

n/a yet

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EU

Support to Kyoto Protocol Implementation (SKPI) Project

12 countries inc. Ukraine (mainly Min. Environ. Protection)

€ 5 Mln

Regional project to combat climate change, through extending use of the Kyoto Protocol and development of national strategies

ICF

EU Twinning (preparation ongoing)

to start in 2011

NAER € 1 Mln

Capacity building through long-lasting exchange of know-how (about 2 years) with an administration similar to NAER in one EU Member State.

EU

INOGATE - Energy Saving Initiative in the Building Sector in the Eastern European and Central Asian Countries (ESIB).

Jan 2010 - Jan 2014

Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine, Uzbekistan

Supports the development and the enforcement of energy efficiency-related legislation in the building sector including drafting of building standards and codes; support awareness-raising initiatives.

EU

INOGATE - Support to Market Integration and Sustainable Energy (SEMISE).

till Jan 2012

Idem

Provides support to the creation of a positive environment for sustainable energy investments including in cooperation with IFIs

EU Covenant of Mayors

to start in mid 2011

Not yet specified

Support to large cities of Ukraine 11 (to date) that have taken the commitment to go beyond the target of 20% CO2 reduction by 2020.

EU Community Base Approach (CBA)

till 2011 Communities of Ukraine

13 M€ in total, about 4M€ for EE

Support to the creation of an enabling local environment A planned 2nd phase (after 2011) will include a specific 5M€ component on EE.

EU Community Base Approach (CBA) Phase II

to start in 2011

Communities of Ukraine

17 M€ in total, about 5M€ for EE

Further support to the creation of an enabling local environment, with a specific 5M€ component on EE - seed grants, awareness mesures etc.

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The Austrian Energy Agency (AEA)

Memorandum of Understanding on energy efficiency and renewable energy sources.

Cooperation with NAER Ukraine's National Agency for the Efficient Use of Energy Resources

Ukraine's National Agency for the Efficient Use of Energy Resources and the Austrian Energy Agency (AEA) have signed a memorandum of understanding on energy efficiency and renewable energy sources. - In particular, the agencies agreed to open educational centres for training managers and experts in the field of energy conservation and energy efficiency. In addition, the parties agreed to cooperate in improving municipal heating systems and housing utilities through the introduction of new technologies and equipment, in particular with the use of bioenergy and cogeneration technologies. The two agencies also agreed to work together to improve Ukrainian legislation in the area of energy efficiency and alternative and renewable sources of energy, and bring it into line with European legislation.

Project Contributions

EU

Contribution to the multi-Donor fund "Eastern Europe Energy Efficiency and Environment Partnership"

To be defined later

€ 40 Mln over 2010-2013

Also known as "the Swedish Initiative" or "5 Es Fund". Administered by the EBRD.

Contribution to EBRD

EU

Neighbourhood Investment Facility (NIF grant)

€ 10 Mln Contribution to the GTZ led Fund on Energy Efficiency.

GTZ

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EU

Energy Efficiency Programme for the Corporate Sector (NIF grant)

2009- August 2012

Companies operating in various industrial sectors, the agri-business and the processing of natural resources

€ 2 Mln

Aims at improving EE and encouraging energy savings in the corporate sector in Armenia, Azerbaijan, Georgia, Republic of Moldova and Ukraine, targeting companies operating in various industrial sectors, the agri-business and the processing of natural resources.

Contribution to EBR, lead Finance Institution