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INSTITUTE FOR ENVIRONMENT AND ENERGY CONSERVATION. ENERGY EFFICIENCY IN UKRAINE AND INVESTMENT OPPORTUNITIES. Ukraine – sovereign , young country. Independence of Ukraine Date August, 24 1991 ( from Soviet Union ). Capital – KYIV. Kyiv. Form of government :
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INSTITUTE FOR ENVIRONMENT AND ENERGY CONSERVATION ENERGY EFFICIENCY IN UKRAINE AND INVESTMENT OPPORTUNITIES
Ukraine – sovereign, young country Independence of Ukraine Date August, 24 1991 (fromSoviet Union) Capital – KYIV Kyiv Form of government: Parliamentary – Presidential Republic Territory: 603 628 sq. km, 43-th in the world Population: 45 999 934 people, 26-thin the world(2009 year) GDP: 336355 $ million., 32-din the world* (2008 year) *World Development Indicators database, World Bank, 15 September 2009
National system of State management in energy efficiency sphere PRESIDENT OF UKRAINE – Head of the country Provides national security, including energy security of the country VERKHOVNA RADA OF UKRAINE – single body of legislative power in the country (Parliament) Defines principles of State policy in energy efficiency area (adoption laws) CABINET OF MINISTERS OF UKRAINE supreme body of executive power (Government)Ensures the implementation of State policy in energy efficiency area Adoption of Government resolutions Adoption of NAER offers Proposal submission concerning providing energy security Proposal submission concerning State energy efficiency policy realization NATIONAL AGENCY OF UKRAINE ON ENSURING OF EFFICIENT USE OF ENERGY RESOURCES MANAGAMENT (NAER) Central body of executive power Provides realization of unified State policy in energy efficiency area Regional policy coordination Branch policy coordination REGIONAL STATE ADMINISTRATIONS (municipalities) According to the priorities of unified State policy provide realization of the policy in Energy efficiency area in the regions. MINISTRIES According to the priorities of unified State policy provide realization of the energy efficiency policy in branches Proposals submission Proposals submission Exercise of State control for effective usage of fuels ECONOMIC AGENTS
Principles: • Building citizens' awareness about necessity, opportunities and benefits of high efficient usage of energy resources to achieve guaranteed standards of their personal wealth. • Priority of high efficient usage of energy resources in the implementation of management, innovation and economic activity. • Economical stimulation of permanent energy efficiency improvement and inevitability of economic responsibility for the inefficient usage of energy resources. • Ways of achievement: • Development of energy efficiency intellectual potential • Innovative technical and technological modernization of the economic fundamentals • Implementation of effective mechanisms for financial support • Optimization of regulation economical mechanisms • Improvement of legislation • Driving factors of energy efficiency mobilization • Ensuring governmental management and control Aim of the State policy in energy efficiency sphere: achievement of maximum social economic result with minimum energy consumption and negative environmental impact
Government determined following priorities of Ukraine activity: • Legislation improvement and creation national system of standards in energy efficiency sphere. • Creation of the system of economical motivation improvement of efficient usage of fuel and energy resources. • Development of national, branch and local programs in sphere of efficient usage of energy resources and energy saving. • Increasing proportion of usage renewable energy sources and secondary energy resources in fuel balance of the State.
National legislation in energy efficiency sphere Sphere of energy efficiency in Ukraine has more than 200 legislative acts: • 10 Laws of Ukraine; • 15 Decrees of the President of Ukraine; • 120 Resolutions of the Government; • Other by-laws. Currently energy efficiency sphere has 50 national standards of “Energy saving” group. Basic laws which regulate relations in energy efficiency area are: • About energy saving; • About electrical power; • About alternative kinds of fuel; • About alternative energy sources; • About combined production of heat and electrical energy (cogeneration) and usage of waste water potential; • About gas (methanol) of coal deposits.
Legislation of Ukraine foresees energy efficiency economical stimulation : • Enterprises that sell an equipment based on renewable energy sources or equipment that would be used in the production of energy from renewable energy sources or alternative types of fuel are releasing from tax up to 80 %. • Exemption of imported energy saving equipment from paying import duties (tax rate – 10 %) – in force from 2008. • Exemption of imported energy saving equipment from paying value added tax (tax rate – 20%) – in force from 2008. • Exemption of enterprises which produce renewable fuel or energy efficient equipment from paying profit tax (tax rate - 25 %) – will come in force after acceptance by the Government a list of relevant equipment. • Exemption of enterprises, which implements energy saving technologies from profit tax to 50% (tax rate - 25 %) – in force from 2008. • Usage of “green” tariff for electricity produced from renewable energy sources (“green” tariff is calculated of the highest retail tariff for industrial consumers on 01/01/2009 in euro equivalent, multiplied by from 0,8 to 4,8)– in force from 2009.
State energy efficiency targets programs. Economical stimulation of energy efficiency. Accounting of energy resources and energy resources balance. State expertise on energy efficiency. Rationing of energy resources usage. Standardization of energy resources usage. Energy labeling Scientific support of State energy efficiency policy. Dissemination of information, education and training in energy efficiency sphere. State energy audit (supervision, control). Responsibility for inefficient usage of energy resources. Mechanisms of realization of State policy in energy efficiency in Ukraine
Motivation factors of energy efficiency increasing Availability of actual demand (individual, collective, corporative) of population on energy resources saving Availability of real possibilities of population (individual, collective, corporative) to save energy according to scientific technical progress Political will power of Government to ensure achievements of high level social economic development through minimization of energy resources expenditures Level increasing of efficient resources utilization Політична воля Уряду забезпечувати досягнення найвищого результату із застосуванням на це мінімальних витрат енергії
Ukraine in 2030 year 0,27 Countries energy intensity of GDP, kg of o.e./USD(by data of International Energy Agency) 2,3 times
Place of Ukraine in renewable energy resources 0,8 % 6,9 % 7,0 % 9,9 % 20,3 % 22,4 % 31,5 % **Energy Yearly Statistics 2006 European Communities, 2008 ***Energy Information Administration Office of Coal, Nuclear, Electric and Alternate Fuels U.S. Department of Energy Washington, DC 20585
Consumption of primary energy resources *(2005) Total 140,4mln. t. of o.e. Volatility level 45 % * “Energy strategy of Ukraine till 2030 year”,Kyiv, 2006.
Gas transportation system of Ukraine • Total length of pipelines over 37,6 thousands km.One of the biggest in the world. Of these, 14 thousands km – main gas pipelines with diameter of 1020-1420 mm. • The capacity of log – 290 bln. cubic meters a year and output - 176,2 bln. cubic meters a year. • Provides a supply to 80% of Russian gas exports to Europe and Turkey. • 13 underground storage facilities with the largest in Europe after Russia’s active volume of gas – more than 32 bln. cubic meters, 21,3% of pan-Europe active capacity. Most are located near transit pipelines on the Western border of Ukraine. • Expired term depreciation of about 30% of Ukrainian gas pipelines. • 60% communications of gas transportation system were in operation from 10 to 33 years.
Structure of natural gas consumption* Gas consumption, bln. м3/year Fields ImportNative producing Total 66,9 ** bln. м3/year * 2005 year. “Energy strategy of Ukraine till 2030 year”, Кyiv, 2006 ** Without taking into account the technological demands
State Target Economic Program “Creation of synthetic fuel from coal and ignitable slates” State Target Scientific Technical Program “Development of production and usage of biological types of fuel” State Target Economic Program of mining and usage gas methane of coal formation like alternative energy resources Complex Program of construction wind power stations State Target Energy Efficiency Economic Program to 2010-2015 15 Branch Energy Efficiency Programs 56 Programs of efficient usage of energy resources by budget institutions 27 Regional Energy Efficiency Programs National strategy on energy efficiency
On effective use of fuel resources (On energy efficiency) On changes in Laws of Ukraine on renewable sources of energy On changes in the Law of Ukraine “On combined production of heat and electric energy (cogeneration) and use of waste potential” Relations regulation, connected with the use of energy resources by implementation of mechanisms of stimulation, responsibility, informational, scientific and financial providing, adopted to legislation of EU. Design of approval system for renewable energy, adopted to EU legislation. Design of approval system for cogeneration energy, mechanisms of cogeneration development acceleration, administrative procedures simplification. Improvement of legislation and National standards system design in the sphere of energy efficiency Laws of Ukraine adoption Planned to design more than 600 national standardson determining of industrial processes energy intensity during 2009-2015
Goal of State Program • Conditioning for achieving of energy intensity of GDP of Ukraine to the level of developed states and EU standards; • Increase of efficiency of use of fuel-energy resources and increase of competiveness of national economics; • Reduction of energy intensity level of GDP during acting of the Program on 20 percents in comparison with 2008 year (annually on 3,3 percents); • Optimization of structure of energy balance of Ukraine by means of reduction of imported fossil fuels and their replacement with other kinds of energy resources, including derived from the alternative energy resources and secondary energy resources.
Changes in structure of energy consumption after program realization mln. t.o.e.
Funding of State target economic program on energy efficiency 2010-2015, mln.$:
Program realization allows: • Decrease GDP energy intensity by 20% in compare with 2008; • Optimize the structure of energy balance; • Provide decrease of natural gas share; • Provide pollution decrease by 15-20%, and environment improvement; • Decrease heat losses in dwelling houses by 50% due to rehabilitation.
Small hydropower Solar Geothermal Environment energy Bioenergy Wind energy Renewable sources of energy potential Total average potential56 *,mln. t.o.e. Goal of Government: Increase the share of renewable sources in energy balance of Ukraine up to 5% in 2015 * Institute of renewable energy NAS of Ukraine
State programs aimed at share of renewable sources of energy increase “Development of production and use of biological sources of energy"
To present experience of Ukraine in the sphere designedNational report on state policy in energy efficiency realization
Structure of the National report on realization State policy of energy efficiency • ENERGY EFFICIENCY AS COMPETITIVE ECONOMY CRITERIA • ENERGY POTENTIAL AND STRUCTURAL OFFERS OF ENERGY BALANCE OF UKRAINE • PROGRAMING AND MONITORING INDICATORS OF ENERGY EFFICIENCY OF UKRAINE • STATE MANAGEMENT, REGULATION AND CONTROL IN ENERGY EFFICIENCY SPHERE • ECONOMICAL MTCHANISM OF ENERGY EFFICIENCY POLICY REALIZATION • SCIENTIFIC AND TECHNICAL SUPPORT OF ENERGY EFFICIENCY POLICY • INTERNATIONAL COOPERATION • DIRECTIIONS OF FUTHER IMPROVEMENT OF ENERGY EFFICIENCY STATE POLICY
Key issues, which described in National report on realization State policy of energy efficiency National report: • systemically summarizes the results and highlights complex of actual problems; • reveals mechanisms of State management, regulation and control in this sphere; • reveals structural components of energy potential and State energy balance; • reveals the results of execution national, branch and regional energy efficiency programs; • summarizes the best experience of energy efficiency projects in Ukraine and contains recommendations concerning overcoming barriers to further implementation energy efficiency policy in Ukraine.
STEM World Bank Scandinavian countries IEA SenterNovem EBRD Energy Charter Germany ADEME EIB IRENA USA KDI NEFCO Japan DENA other
Leading international organization-partner on energy efficiency NAER Partners
Realization of the State Target Energy Efficiency Economic Program to 2010-2015 INSTITUTE FOR ENVIRONMENT AND ENERGY CONSERVATION • Development and implementation of the energy saving projects on the municipal facilities in Ukrainian cities based on energy saving equipment and technologies: • cogeneration plants; • heat pumps; • solar collecting panels; • other energy conservation equipment.
Innovation energy-conservative projects Implementation of power complex, using cogeneration plant and heat pumps in the “Kamyshova” bay of the Sevastopol city
Innovation energy-conservative projects Modernization of the municipal heat and power engineering facilities of Alchevsk city with implementation of the innovative energy saving technologies and alternative energy sources
Innovation energy-conservative projects Implementation of power complex, using cogeneration plant and heat pumps in the boiler-house of the Zhytomyr city
Innovation energy-conservative projects Modernization of the municipal heat and power engineering facilities of KryvyiRih city with implementation of the innovative energy saving technologies and alternative energy sources
Innovation energy-conservative projects Solar collectors implementation for hot water-supply in the Melitopolcity municipal policlinic ГВ- hot water ХВ – cold water ТВ – warm water Secondary thermal energy source (natural gas or electricity hot water boilers, heat pump) Solar collecting panels
Innovation energy-conservative projects Construction of the heat pump station in the Bortnichi aeration station of the Kievvodokanal (Kiev Water Sewer)