Energy Efficiency in Ukraine:
EBRD Experience
Jan-Willem van de Ven
Associate Director, Head of Carbon Market Development Energy Efficiency and Climate Change, EBRD
•
Energy efficiency in Ukraine
•
Barriers and opportunities for energy efficiency
•
EBRD as the lead financier and facilitator of energy
efficiency in Ukraine
Contents
Energy Intensity in Ukraine
• Ukraine still remains one of the most energy inefficient countries in the world (at the same level as energy-rich neighbours)
• Ukraine’s energy intensity is 3 times higher than the EU average (PPP-adjusted) 0 0,1 0,2 0,3 0,4 OECD Europe
World Poland Czech Republic
Belarus Russia Ukraine
toe /t hous a nd - 2005 U S $ P P P
• Ukraine has tremendous potential for energy efficiency even in global terms (“Saudi Arabia of energy efficiency”, IEA):
• Industry: Ukraine’s industry accounts for 35% of energy
consumption, some potential was realised due to natural gas price increases since 2005, more expensive technology-driven investments required
• Energy sector: very inefficient energy transformation (40% of
TPES). EE potential is large and overlooked, especially in power sector and DH. Large losses in power and gas transportation
• Buildings: consume the same amount as the whole industry
(35%). 10 mln buildings, including 80,000 multistory buildings, energy savings potential at 50% of current energy
consumption, equivalent of 12 bcm (Russian gas imports)
Energy Efficiency Potential
• Portfolio of over €11 billion in 340 projects (€1 billion annually)
• Sustainable energy - 30% of total financing
EBRD – a largest financial investor and
facilitator of energy efficiency
Number of projects Amount (EUR million) EE in corporate sector 55 723
EE credit lines (UKEEP) 11 232
Cleaner energy production 9 389
Renewable energy 12 234
EE in municipal sector 22 384
EBRD direct lending on energy
efficiency
• EBRD performs free-of-charge energy audits for potential clients and
provides competitive financing for the project implementation
• Astarta
• EUR 16 million Energy Efficiency Programme
• €325,000 Energy Efficiency Management System grant
• 30% natural gas savings, 30% of raw materials
• Ukrproduct
• EUR 13 million investments in energy efficiency
• Energy consumption reduced by 48%, water savings - 5%
• Lugcentrokuz
• EUR 6.2 million Energy Efficiency programme
• Natural gas savings - 10%, electricity savings - 12%
Corporate energy efficiency:
Value added to our clients – Astarta success story
• 3 loans of total $100 m with $25 m EE
components identified through Energy Audits:
• Installation of deep pressing pulp presses
• Modernisation of vacuum pans
• Replacement of boilers, automation of TPS
• Installation of VSDs
• Energy savings of 25-30%; carbon emission
reduction of 80 kton CO2e per annum
• Carbon credits purchased by MCCF ($2.5m) • Energy Management Training for 20
engineers
• €325k Energy Efficiency Management System
grant incentive
• A follow-up biogas study
• A new $12m loan for biogas plant (one of the
largest in Ukraine) in 2012
UKEEP:
Ukraine Energy Efficiency Credit Line
•
€150 million credit line for Ukrainian banks: UkrExim -
$100m; Kreditprom - $10m; Forum - $25m; Mega -€10m
•
For on-lending to private sector for industrial energy
efficiency and small renewable energy projects
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€ 2 million grant component from donors (Sweden and
Austria) to address market barriers to investments:
o Project preparation, marketing, information campaign
o Project evaluation and assistance to end-users and banks in project
design through energy audits
•
Impact to date: 300 projects screened; 50 energy audits
completed; 100 projects worth € 140
million committed
14% 10% 31% 14% 21% 10% hydro - 11 wind - 8 solar - 25 biomass - 11 biogas - 17 pellets - 8
USELF is now replenished by another EUR 70 million (EUR 50m of
EBRD and EUR 20m of Clean Technology Fund) – Phase II
Over 100 applications received, 20-25 projects are feasible, most of
them require additional work and technical assistance
In 2010-2014, the EBRD financed 8 projects – 3 solar, 2 biogas,
wind, biomass and small hydro
USELF: Ukraine Sustainable Energy
Lending Facility
Ukraine Residential Energy Efficiency
Financing Facility (UREEFF)
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o Potential for investments in buildings
capital repairs is estimated at EUR 15-20 billion
o Utility tariffs increased in 2-4 times and
expected to grow further
o Policy dialogue since 2009:
o Draft Laws on Energy Efficiency in
Buildings, On Ownership Rights in Multi-Family Buildings, amendments to the Housing and Municipal Services Law
o EUR 90 million demand-side energy efficiency programme for residential
energy end-users
o ‘One-stop-shop’ programme of technical assistance, credit lines
and incentive grants combined with FX risk-sharing and guarantees
o Kick–starting the market for EE equipment, materials, services
New Development FINTECC
Financing Technology Transfer
POLICY DIALOGUE
• Industry standards, methodologies and baselines • Regulatory support to the Government
• Visibility and knowledge sharing activities
TECHNICAL ASSISTANCE
• Assistance to potential clients in identification of
viable technology investments via energy audits, assistance with R&D, trainings, MRV
INCENTIVE GRANT PROGRAMME
• Incentive grants provided ex post for EBRD projects
that include investments into eligible technologies
• Covers up to 25% of eligible costs but capped at a
maximum of USD 1,000,000
• Expected to support up to 15 projects in Ukraine
between 2016 and 2018
Case Study 1: Workshop and showroom
Technologies considered: tri-generation, clean burn boiler, water recovery and re-use, variable refrigerant flow cooling system, building energy management system and LED.
Case Study 2: Small retail
Technologies considered: Solar thermal collectors, Rain water harvesting, LED lighting, Energy Management System.
FINTECC can support the introduction of robust ETS compliant MRV at the project level.
Thank you!
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Jan-Willem van de Ven
Associate Director, Head of Carbon Market Development Energy Efficiency and Climate Change
European Bank for Reconstruction and Development + 44 20 73387821
