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UKRAINE : ROLE OF UTILITIES AND ENERGY SERVICE COMPANIES IN IMPROVING ENERGY EFFICIENCY KOSTIANTYN GURA EXPERT VIEW

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Page 1: UKRAINE - UNECE · Ukraine was the 20th country to ratify the Paris Agreement The share of renewables in primary energy consumption should be 25% according to New Energy Strategy

UKRAINE : ROLE OF UTILITIES AND ENERGY SERVICE COMPANIES IN IMPROVING ENERGY EFFICIENCY

KOSTIANTYN GURAEXPERT VIEW

Page 2: UKRAINE - UNECE · Ukraine was the 20th country to ratify the Paris Agreement The share of renewables in primary energy consumption should be 25% according to New Energy Strategy

National Renewable Energy Action Plan-2020

NATIONAL TARGETS ON ENERGY EFFICIENCY AND RENEWABLES

National Energy Efficiency

Action Plan-2020

as of Oct.1, 2014, № 902-р as of Nov. 25, 2015, № 1228-р

Ukraine was the 20th country to ratify the Paris Agreement

The share of renewables in primary energy consumption should

be 25% according to New Energy Strategy till 2035

11% of Renewables in final energy consumption

-9 % (6,5 mln t.o.e.) of energy saving comparing to the average final energy

consumption in 2005-2009

2

Page 3: UKRAINE - UNECE · Ukraine was the 20th country to ratify the Paris Agreement The share of renewables in primary energy consumption should be 25% according to New Energy Strategy

Residential buildings

Public entitiesMulti-

Apartment

Private

(Individual)

Number of Buildings

≈ 80 000 ≈ 6,5 million ≈ 100 000

Necessary Investment

≈ from 50 to 85 billion USD* ≈ from 4 to 8 billion USD*

Annual Saving Potential (in gas equivalent)

8 billion cubic meters 800 million cubic meters3

ENERGY EFFICIENCY IN BUILDINGS

*depending on the thermal modernization level

Page 4: UKRAINE - UNECE · Ukraine was the 20th country to ratify the Paris Agreement The share of renewables in primary energy consumption should be 25% according to New Energy Strategy

Partial reimbursement of the loans obtained by

participants (Individual Households & Home

Owner Associations (multi-dwelling buildings))

Mechanism:

20% - for biomass boilers

35% - for energy efficiency measures for individual households

40% - for Home Owner Associations

Support Share:

EUR 154,2 million has been distributed to 360 000 households

EUR 57,8 million - Government reimbursement

Funding:

Duration: Active since Oct’2014

+ 310 regional programs (from local budgets due to fiscal decentralization) for extra reimbursement of «warm» loans

Financial partners:Oschadbank, Privatbank, Ukreximbank, Ukrgasbank

STATE SUPPORT PROGRAM FOR HOUSEHOLDS ("WARM LOANS PROGRAM”)

4

Page 5: UKRAINE - UNECE · Ukraine was the 20th country to ratify the Paris Agreement The share of renewables in primary energy consumption should be 25% according to New Energy Strategy

5

ADOPTED LEGAL FRAMEWORK FOR ENERGY SAVING PERFORMANCE CONTRACTS IN PUBLIC BUILDINGS

ESCO-mechanism

(investment return from the achieved energy savings)

Sample Energy Saving Performance Contract was adopted by the government on Oct 21, 2015Next steps:

- Developing of guidelines for Contracting Parties (on public purchasing procedures etc.)

- Creation of incentives for ESCO-market development

- Information campaign

Beforeconcluding energy

saving performance

contracts

Duringthe time of energy

saving performance

contract validity

(up to 10 years)

Afterthe completion of

energy saving

performance contract

Energy costs etc.

Budget

saving

Budget saving

ESCO

payments

Result:

Creation of new ESCO-market

with expected volume of

4,4 bln EUR

Development of market of

energy efficient equipment and

technologies

New jobs creation

5

Page 6: UKRAINE - UNECE · Ukraine was the 20th country to ratify the Paris Agreement The share of renewables in primary energy consumption should be 25% according to New Energy Strategy

TEMPORARILY OCCUPIED AREA

24 REGIONS 21 CITIES

PUBLISHED DATA ON:

CHERNIVTSI

ZAKARPATTYA

LVIV

TERNOPIL

VOLYN

KHMELNYTSKY

VINNYTSYA

CHERNIGIV

SUMY

POLTAVA

MYKOLAYIV

KHERSONODESA

KHARKIV

DNIPRO

ZAPORIZHZHYA

LUHANS’K

DONETS’K

IVANO-FRANKIVSK

RIVNE

KROPIVNITSKY

CHERKASY

ZHYTOMYR

KYIV CITY

11 715 potential targetsin the database

INFORMATION ON THE POTENTIAL ESCO OBJECTS PUBLISHED

6

Page 7: UKRAINE - UNECE · Ukraine was the 20th country to ratify the Paris Agreement The share of renewables in primary energy consumption should be 25% according to New Energy Strategy

The appropriate laws and regulations developed with support of

EBRD have been adopted. That gives the guarantee for

investments return in the framework of state budgetary

commitments.

2016:

first 20 EPCs were

concluded in 5 regions

of Ukraine

2017:

more than 100 EPCs are

under initiation

ENERGY PERFORMANCE CONTRACTING FOR PUBLIC SECTOR

Previous

Cost

New Reduced Cost

Savings

En

erg

y C

ost

TimeContract expires

7

Page 8: UKRAINE - UNECE · Ukraine was the 20th country to ratify the Paris Agreement The share of renewables in primary energy consumption should be 25% according to New Energy Strategy

21 40 94 132244

298430

625

1109

1309

1635

2323

ІV qt. 2014

І qt. 2015

ІІ qt. 2015

ІІІ qt. 2015

ІV qt. 2015

І qt. 2016

ІІ qt. 2016

ІІІ qt. 2016

IV qt.2016

І qt. 2017

ІІ qt. 2017

ІІІ qt. 2017

Number of private households

DYNAMICS OF SOLAR INSTALLATIONS

IN PRIVATE HOUSEHOLDS

0,1 0.3 0.8 1.2 2.2 3.45.1

7.9

16.7

20.1

24.9

37.1

ІV qt. 2014

І qt. 2015

ІІ qt. 2015

ІІІ qt. 2015

ІVqt. 2015

І qt. 2016

ІІ qt. 2016

ІІІ qt. 2016

IV qt.2016

І qt. 2017

ІІ qt. 2017

ІІІ qt. 2017

Installed capacity, MW

€ 34,7 mln investments attracted

The number of private houses eligible for solar panels installation is 6,5 mln

8

Page 9: UKRAINE - UNECE · Ukraine was the 20th country to ratify the Paris Agreement The share of renewables in primary energy consumption should be 25% according to New Energy Strategy

Kostiantyn [email protected]

Adviser on a Voluntary Basis to Head of State Agency on Energy Efficiency and Energy Saving of Ukraine