energy efficiency in eastern europe and cis: climate change mitigation portfolio

RBEC UNDP-GEF Climate Change Mitigation Portfolio:

Current Status and Lessons Learnt

Presented by Marina OlshanskayaWednesday, 23 September

RBEC Energy and Environment Community of Practice Meeting21-25 September 2009, Bratislava

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RBEC Energy and Environment CoP Meeting

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Presentation Overview

• Regional context: pro-poor opportunities for GHG emission reduction

• Current status of RBEC CC Mitigation Portfolio

• Lessons learnt from GEF-4

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Energy Profile: Eastern Europe and CIS

Low energy efficiency (even new EU members), little use of renewable energy (except hydro) → most energy- and carbon-intensive economies globally

Source: World Resources Institute 2008

EU (15) Middle East CIS

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LDCs Asia EasternEurope

Uzbekistan

Carbon intensity, tCO2/Mill. $Intl

World average

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Energy & Poverty Profile: Eastern Europe and CIS

Fuel Poverty: Energy bills constitute 20% of low-income

households (twice as much as in EU) Access to Energy:

Despite nearly universal grid connection, millions rely on wood fuel for heating and cooking needs (Western Balkans, Central Asia): Collapse of district heating systems in Armenia,

Moldova, Georgia and gradual deterioration in the rest of CIS

Chronic power crisis: Kyrgyzstan and Tajikistan

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UNDP key priority: energy efficiency in buildings

Source: UNDP/GEF Project Document, Kyrgyzstan

• 40% of energy used in buildings

• Building stock 2-3 times less efficient than in EU

• Utilities account for 20% in poor households income

• 30% reduction in costs can make a substantial difference

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Kyrgyzstan Russia Sweden

kWh/m2/yr

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Barriers to remove:

UNDP key priority: energy efficiency in buildings

How do you think about work the heating supply system in your apartment?

Bad30, 1%

Don’t work at all

20,5%No answer

1,8%

Good47, 7%

Turkmenistan: 50% of customers are not satisfied with heat systems

Source: UNDP/GEF Project Report TUK/01/G35

- Poorly designed and insufficiently enforced legal and regulatory framework

- Weak capacities to identify and implement energy efficiency measures among municipalities, tenants and district heating companies

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Project example: EE Renovation in Bulgaria

Source: UNDP Project Booklet, Bulgaria

- 28 voluntary associations of

condominium owners for the

purposes of renovation and future

maintenance created;

- 7 multifamily buildings fully

renovated and 21 buildings

undergoing renovation

- Annual energy saving: 50-75%

due to EE renovation

BEFORE

AFTER

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Project example: Municipal EE in Croatia

Source: UNDP-GEF Project in Croatia

- Policy-level support: National EE

Master-plan with the Programme of

Implementation 2008-2016- Energy Charter: signed by ALL

towns and counties in the Republic

of Croatia- At least 7 million USD

investments leveraged in energy EE

across Croatia

- 91,5% of households are aware of

availability and the

benefits of EE products

related to home appliances

- Project budget: 13 M US$ (on-going)

with UNDP/GEF contribution 3.5 M$

BEFORE

Advocacy kit under UNDP “House in Order” project

Energy Charter

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New legal and regulatory framework for rehabilitation of DH systems

USD 10 million direct foreign (private) investments leveraged into new DH system (Avan district of Yerevan, 213 buildings, 30.000 residents);

System features combined heat and power facility, reconstructed network and apartment level metered and regulated system

400 new contracts siged between customers and heat supply companies in the demo/pilot areas based on apartment level heat meters.

Project example: District Heating in Armenia

Heat meter installed at the entrance to an apartment in Avan district of Yerevan

Multi-apartment panel building with exhaust chimney from gas heater installed in one apartment (not financed by the project!)

Source: UNDP-GEF MTE report, photos by Grant Ballard-Tremeer

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New Combined Heat-and-Power Plant replaced 11 outdated inefficient boilers and constructed heating manifolds providing over 70,000 inhabitants with quality heating and hot water supply services

Project example: Municipal ESCO-Rivne, Ukraine

Before: Heat supply to Gymnasium used to be organized from a remote central boiler plant and the Gymnasium was located at the dead-end of the heat supply manifold: temperature in heated spaces was 13C – 15C

After: Module type individual boiler plant constructed in 2008 allowed avoiding significant heat losses at utility’s 2km manifolds and secured first comfort winter for schoolchildren and teachers since 1994.

Source: UNDP/GEF Project Booklet, Ukraine

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New EE Building Portfolio: ARM, KAZ, KYR, UZB, TKM, TUR

Source: http://www.energetska-efikasnost.undp.hr/index.php?option=com_content&view=article&id=193&Itemid=125

Portfolio consists of six projects worth GEF 15.7

mln US$ and focuses on:

New Energy Efficient Building Codes to provide for

up to 30% more energy efficient buildings

New Enforcement System: Energy Passports

Education and Awareness Raising: new university

curricula and vocational training

Demonstration: 50-100,000 m2 built following integrated building design

approach

• 8 schools and hospitals in Uzbekistan and Kyrgyzstan

• 10 multi-rise residential buildings in Kazakhstan, Turkmenistan and

Armenia

Co-financing: 50 mln US$ from public and private sector construction

programmes

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UNDP key priorities: renewable energy

Wind power: Kazakhstan

Biomass: Slovakia, Belarus, Poland, BiH, Slovenia, Latvia

Solar Water Heating: Albania

Small hydro power: Georgia, Kyrgyzstan and Tajikistan

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Project examples: over 100 MW of biomass-based heat and power installed

Source: UNDP/GEF Biomass Lessons Learnt

Belarus: five biomass boilers installed across country (30MWth)

Latvia: one 7MWth heat-only boiler in the town of Ludza

Poland: five biomass municipal boiler houses (0.5 - 3.7MW)

Slovakia: wood pellet Central Processing Unit and conversion of 44

municipal boiler rooms (15 kW - 2,5 MW)

Slovenia: eight biomass district heating systems (four large: 1 MW

to 4.5 MW, and four small: 0.2 to 0,6 MW)

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Energy Efficiency in Buildings

• District heating EE – Good example : Armenia

• Municipal sector EE – Good example: Croatia

• EE in Public Sectors – Good example: Russia

Worked well Didn’t work/partially worked

• EE regulation and policies

• Capacity building for municipalities/local partners

• Governmental/private sector co-financing can be real

• Financial mechanism (guarantee/revolving funds)

• Set-up of new Energy Service Providers

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Renewable Energy

• Biomass – Good example: Belarus, Slovakia, Slovenia, Latvia

• Wind Power – Contoversial example: Kazakhstan

Worked well Didn’t work/partially worked

• Technology demonstration/learning/quality management systems

• RE policies and regulation

• Governmental co-financing

• Financial mechanism (guarantee/revolving funds)

• Private sector co-financing – complex, requires new set of skills/policies from UNDP

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Lessons learnt: We do not learn from our lessons learnt

UNDP-GEF Lessons Learnt Series “Heating in

Transition”:

http://www.energyandenvironment.undp.org/

undp/index.cfm?

module=Library&page=Document&DocumentID

=5516

How-to Guide on Local Financing for Energy

Efficiency:

http://europeandcis.undp.org/Home/show/

493DC5EE-F203-1EE9-BEA758AF3FC07287

Opportunities for Biomass Energy Programmes:

http://europeandcis.undp.org/environment/

show/0918DA7F-F203-1EE9-

BD7B7772D2F5835B

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CC Mitigation Portfolio: status and priorities Status Volume ( GEF mln $)

On-going 36.7

At PPG 61.4

At PIF (submitted to GEF) 7.6

! Only 2 projects (MSPs - 2 mln US$) developed in GEF-4 had started implementation

!!! Key Priority for 2009-2010: ensure timely completion of PPG: a) Deadline 1: GEF CEO

Endorsementb) Deadline 2: UNDP approvalc) Deadline 3: Prodoc Signature and

Project Start-up

INDICATIVE CALENDARMilestones Expected Dates

mm/dd/yyyy

Work Program (for FSP)

CEO Endorsement/Approval Deadline 1Agency Approval Date Deadline 2Implementation Start Deadline 3Mid-term Evaluation

Project Closing Date

Please, prepare your individual calendars based on approved

PIFs/CEO Endorsement Requests!

energy efficiency in eastern europe and cis: climate change mitigation portfolio

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