UKRAINE : ENERGY EFFICIENCY and RENEWABLE ENERGY State Agency on - - PowerPoint PPT Presentation

UKRAINE:

ENERGY EFFICIENCY and RENEWABLE ENERGY

State Agency on Energy Efficiency and Energy Saving of Ukraine

Dynamics of natural gas consumption in 2014-2017* Achievements of 2014 - III quarter of 2018:

* according to operational data of NJSC “Naftogaz of Ukraine” and PJSC "Ukrtransgas" (without temporarily occupied territories)

• 6 billion m3

– € 1.2 billion saved in 2017

IN RENEWABLE ENERGY:

2 000 MW of new heat capacities

Investments – 460 million €

958 MW of new renewable energy capacities

Investments – 910 million €, including:

6 031 of families installed SPP with total capacity - 121 MW

Investments – 120 million €

IN ENERGY EFFICIENCY:

500 000 of families implemented energy efficiency measures via

"warm" loans in the residential sector Investments – 220 million €

204 ESCO-contracts are concluded in the public sector

Investments – 6,3 million € 5 billion m3

– potential for reducing of annual consumption and substitution of natural gas from 2022

MAIN PRIORITY: NATURAL GAS SAVING

Invested in Ukrainian "clean“ energy projects

∑ ≈ 1,6 billion euros

15 11 9 8,4 6,6 4 0,66 0,50 0,3

2014 2017 2022 (forecast)

Public sector Heat supply companies Households

• 24%
• 25%
• 24%
• 39%
• 20%
• 27%
• 22%
• 40%
• billion. m3

13 18 24

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Potential directions of investment attraction

• f energy, produced from RES

in the structure of primary energy supply

СURRENT STATUS OF ENERGY EFFICIENCY AND RENEWABLE ENERGY IN UKRAINE

National Renewable Energy Action Plan-2020 Energy Strategy of Ukraine till 2035

€ 30 bln

11% 25% 9%

Residential sector – continuation of state program for

stimulating households to implement energy efficiency measures

€ 44 – 74 bln – investment potential

Industry – state support for realization of energy efficiency

measures

€ 2,3 bln – investment potential

Public sector – development of EPC market

€ 8 bln – investment potential

Necessary investments by 2035 for: construction of renewable energy facilities (SPP, WPP, small HPP, CHP, biomass boiler station, biogas facilities, etc.) construction of capacities for production of equipment for renewable energy facilities construction of biofuel production plants (solid, liquid) growing of energy crops

• f Renewables in final energy consumption

National Energy Efficiency Action Plan-2020

• f energy saving comparing to the average final

energy consumption in 2005-2009

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28,0 1 246,6 1 458,9 2 325,6 1 031,8 6 091,0

1 604 77 941 84 177 110 960 21 962 296 644

2014 2015 2016 2017 2018 2014- 2018

Duration: Active since Oct’2014 Mechanism:

Partial reimbursement of loans got by individual households & condominiums

Financial intermediaries:

Oschadbank, Privatbank, Ukreximbank, Ukrgasbank

Support share:

20% - for biomass boilers (35% for obtainers of housing subsidies) 35% - for energy efficiency measures for individual households 40% - for condominiums (70% for obtainers of housing subsidies)

Funding:

EUR 190 million (≈ 6,1 billion UAH) has been distributed to ≈500 000 households EUR 73 million (≈2.3 billion UAH) – reimbursed by the Government (during 2014 - 2018) + 167 regional programs functioning in 2018 for extra reimbursement of «warm» loans Effect: Estimated annual savings of resources in natural gas equivalent is 249,3mln m3. Quantity of loans Total sum of loans issued, mln. UAH

Amounts of reimbursement:

• in 2014 - 2.4 million UAH
• in 2015 - 302 million UAH
• in 2016 - 861 million UAH
• in 2017 - 818 million UAH
• in 2018 - 500 million UAH

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IN TOTAL

(as of 30.11.2018)

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

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ENERGY PERFORMANCE CONTRACTS (EPC, ESCO) FOR ENERGY EFFICIENCY MEASURES IN PUBLIC BUILDINGS

EPC plans 2018:

≥ 370 contracts * - no tenders (of 1 or <participants)

2016: 20 EPC contracts worth 18 million UAH were concluded 2018: 184 EPC agreements worth 186,5 million UAH were concluded

265

• Completed auctions via EPC proposals

EPC Tenders:

21

• Cities where tenders are announced
• EPC tenders

613 27

• Open tenders for EPC proposals

284 37

• Nearest auctions

184

• Concluded EPC contracts

43

• Cancelled and unsuccessful tenders*

Tenders were held in 43 cities of Ukraine:

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▪ Feed-in tariffs are fixed in EUR till 2030; ▪ Premium for Ukrainian equipment usage is provided – 5-10% to existing tariff; ▪ Signing of bankable long-term Power Purchase Agreement (PPA) with feed-in tariff till 2030; ▪ Stimulating tariffs for heat produced from alternative sources envisaged.

LAW OF UKRAINE «ON FOSTERING RENEWABLE ENERGY DEVELOPMENT»

Technology/Comm.Year 2015 2016 2017-2019 2020-2024 2025-2029 Biomass 123.86 123.86 123.86 111.48 99.09 Biogas 123.86 123.86 123.86 111.48 99.09 Geothermal 150.25 150.25 150.25 135.17 120.09 Small Hydro (0.2-1MW) 139.48 139.48 139.48 125.48 111.48 Small Hydro (1-10MW) 104.47 104.47 104.47 94.24 83.47 Solar (ground based) 169.64 159.94 150.25 135.17 120.09 Solar (roof based) 180.41 172.33 163.71 147.56 130.86 Wind (>2MW) 101.78 101.78 101.78 90.47 79.16 Solar (private households) 200.32 190.09 180.94 162.63 144.86 Wind (private households) 116.06 116.06 116.06 104.47 93.16

38 100 123.86 Poland Germany Ukraine

Average biomass feed-in tariff, EUR/MWh

EUR/MWh

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2014 2015 2016 2017 Q ІIІ 2018

411 432 531 742 1097 0,1 2 17 51 121 426 426 438 465 522 80 87 90 95 96 35 35 39 39 45 15 17 20 34 44

SPP SPP Households WPP Small HPP Biomass Biogas

967 999 1 135 1 426 1 925

From the beginning of 2015, 958 MW were introduced and around € 910 mln were invested.

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INSTALLED CAPACITY OF RENEWABLE ENERGY OBJECTS WORKING UNDER THE "GREEN" TARIFF

1 7

Combined Heat & Power (CHP) on renewable fuels Wind power turbines production plant

Under license

• f

German company Fuhrlaender AG City: Kramatorsk Power of turbines: 2.5 - 3.2 MW Planned: 4.1-4.5 MW Built: 77 turbines in Ukraine and 22 turbines in Kazakhstan CHP provides heat and electricity: 190 residential buildings (22 000 dwellers); 3 kindergartens; 5 schools. City: Kamyanets-Podilskyy

Capacity: 45 MW including: 15 MW – solid fuel boiler (5 and 10 MW); 1,8 MW – turbine with ORC module (on solid fuel);

Fuel: wood chips, pellet Investments: 8,2 mln EUR Substitution: 8,4 mln m³ of natural gas annually

EXAMPLES OF SUCCESSFUL RENEWABLE PROJECTS

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Town: Teofipol, Khmelnitskii region Type of fuel: sugar beet pulp, corn silage Electricity production: 15 MW

• 5 MW (first line working on sugar beet pulp);
• 10 MW (second line working on corn silage).

Heat production: 15 MW Investments: 40 mln EUR Equipment: Jenbacher (Austria)

Teofipol biogas complex 15 MW (PJSC “Orel-Lieder”)

UAMAP COMPRISES DETAILED INFORMATION ON MORE THAN 79 IMPLEMENTED AND

101 POTENTIAL PROJECTS THAT REQUIRE INVESTMENTS & SOFT LOANS IN AMOUNT OF

€ 4 BLN

www.uamap.org.ua

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300 – 350 kg

• f household solid waste

is carried out to the landfills in Ukraine is produced by one person in Ukraine 10 mln tons

• f household waste

3,5 mln Gcal

• f heat energy

1,2 billion kWh

• f electric energy

WASTE TO ENERGY

New legislation for electric and heat energy production from waste is under development

gas equivalent

≈1 bln m3

Annually:

NEW PRIORITY OF STATE ENERGY POLICY IN UKRAINE:

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0,86 0,41 0,91 3,9 1,2 3,1 11 36,5 41,8 81,4 161,4 250-300 50 100 150 200 250 300 1 2 3 4 5 6 7 8 9 10 11 12

CREATION GREEN BONDS MARKET IN UKRAINE

debt instrument,

the funds from the sale of which are sent exclusively for financing the "green" projects (both new and existing)

The concept of green bonds

GREEN BONDS

focused investors, who demonstrate environmental, social and governance responsibility

Main buyers

Renewables 43% Energy efficiency in buildings 24% Clean transport 13% Waste management 4% Conservation

• f water

resources 6% Other 10%

Funds world use compliance

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Green bonds world market development indicators

International Financial Institutions 49% Corporations 25% Banks 17% States and municipalities 8% Bonds guaranteed by IFIs and states 1%

Key world issuers

* according to Climate Bonds Initiative

By ОЕСD estimate

$ billion

SAEE has prepared draft legislation for green bonds introduction in Ukraine

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INVEST in UKRAINE!

State Agency on Energy Efficiency and Energy Saving of Ukraine Phone: +38 (044) 590 59 64 E-mail: office.saee1@gmail.com